Good Energy has secured the services of heat pump installer Igloo Works for an initial sum of around £1.75 million.
The acquisition will support Good Energy’s heat pump services with Igloo having the correct prerequisites for growth in the sector. To date, Igloo has helped over 1,000 homes install heat pumps.
Through the agreement, Good Energy will provide extra capital for Igloo to scale up its model for installation, services and the maintenance of heat pumps.
“We have a shared vision with Good Energy in helping customers move away from the reliance on fossil fuels. Having clearly demonstrated the market interest, joining a business that has the capital and the existing customer base allows us to accelerate towards this vision,” said Matt Clemow, founder and chief executive of Igloo Works.
“As one of the first to offer a heat pump for the same price as a fossil fuelled boiler back in 2021, we are well placed to help the 1.5 million homes each year who replace their boiler make move to low carbon heating. We are looking forward to growing with Good Energy and helping people make an impact on climate change.”
Heat pumps are one of a number of technologies that could be crucial in decarbonising the heat sector in the UK. This requirement has seen a number of energy suppliers secure the services of heat pump companies, with Octopus Energy making a similar move in April with the acquisition of heat pump manufacturer Renewable Energy Devices (RED).
The multi-million pound partnership will see RED’s existing factory significantly expanded, with an additional 100 engineering jobs created by 2024. The factory will be able to produce over 1,000 heat pumps a month by the end of 2022 and will continue to grow beyond this.
Under the agreement, Igloo will be incorporated into Good Energy’s brand.
“The heat pump market is hotter than ever. As everyone feels the crunch of gas prices, more customers than ever are eager to cut loose from fossil fuels and take control of their energy by switching to clean power,” said Nigel Pocklington, chief executive of Good Energy.
“Bringing the Igloo Works team on board is a big step towards our ambition to help a million customers cut their carbon, and it targets a vital area where that’s needed — the electrification of heating. With Igloo’s established expertise and technology Good Energy will be right at the forefront of this transition.
“I expect 2023 will be a very exciting year for Good Energy’s services expansion, as we launch new products for home generators alongside those for heating. Good Energy will soon be the complete package for homes and businesses looking to go green and save money.”
Heat pumps had been included as part of the government’s Green Homes Grant which reduces the upfront costs of the technology and insulation. The grant was first introduced in September 2020 but closed in early 2022 having been plagued with issues throughout its lifespan.
It was reported that members of the public had been waiting months to be issued vouchers and there were delays in installers being paid. This had led the Environmental Audit Committee to describe the domestic decarbonisation support as “woefully inadequate”.