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Swedish heat pump firm launches pay monthly model in UK with £300m
A Swedish heat-pump firm that offers a pay-monthly subscription model has pledged to invest £300m in the UK over the next three years.
Aira said it would hire 8,000 British employees over the next decade, alongside a target of helping one million UK homes switch from gas boilers to a clean-energy heating system.
The company, which currently has 200 employees in the UK and 600 globally, said it would also establish a series of academies across the UK to train clean-energy professionals. It has begun work on two training facilities in the UK, one in Crayford, London, and one in Sheffield.
Aira, which was founded in 2022 by private equity investor Vargas, installs various clean-energy measures, such as heat pumps, solar panels and battery storage.
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Payment is on a monthly subscription basis, with no upfront cost for upgrades.
By switching to one of its heat pumps, which are currently built by German manufacturer Vaillant, Aira claims that households can save 25% on heating-related costs. The firm said production of its own-brand heat pumps would begin in Poland in 2024.
Aira employees take care of customers’ heat-pump government grant applications and provide help with any planning permission if required.
In August 2023, Aira acquired All Seasons Energy, a Sheffield-based energy-efficiency installation firm.
The government aims to install 600,000 heat pumps a year by 2028 to cut carbon emissions. However, only 55,000 were sold in the UK last year.
It typically costs around £10,000 to buy and install a heat pump in the UK. The government is offering £7,500 towards the installation of both air-source and ground-source heat pumps, as well as zero VAT on installations.
Martin Lewerth, chief executive of Aira, said: “The UK is a crucial market to decarbonise, being one of Europe’s most-populated countries and with the lowest heat-pump penetration rate, of just 1%.
“We are excited to introduce Aira’s innovative home-energy solution in the UK, and we are confident that our offering and value proposition, which includes substantial consumer cost savings, no need for lifestyle changes, and a zero upfront payment model, will be well received. We are here to accelerate the important transition from dirty gas boilers to clean heat pumps.”
Claire Coutinho, secretary of state for energy security and net zero, said: ‘’Families should not have to choose between cutting costs and cutting emissions, which is why we increased our boiler upgrade scheme by 50% to £7,500 grants – making our scheme one of the most generous in Europe.
“Our plan is working, and we are seeing an increase in applications. It’s fantastic that Aira is investing £300m in the UK heat-pump market to help further roll-out.
“Their investment will also create 8,000 new jobs here in the UK, growing our economy and helping us make the green transition.”
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