Currently, 78% of energy used to heat buildings is powered by gas. The transition to low energy heating remains significantly behind renewable electricity generation in the UK and is central to the plan to reach net zero. RHHL’s ground source heat pumps replace traditional gas boilers, with all of its existing systems having been installed in new-build retirement homes.
Established in 2013, RHHL owns and operates over 70 projects with a combined capacity of 11.55 MW, generating more than 17,000 MWh of renewable heat per year. RHHL generates income through payments under the government’s Renewable Heat Incentive (RHI) scheme for each of the projects. The RHI payments are guaranteed for a 20-year period and are index-linked to protect against inflation.
Cheltenham-based RHHL retains ownership of the entire renewable heat system and leases the client’s plant room for 20 years. The company is responsible for maintaining and servicing the heat pump system during this period and ensuring the system provides heat and hot water to the client’s building. At the end of the 20-year lease, the entire heat pump system passes to the client. Residents receive hot water and heating and pay only for the electricity to power the pumps.
RHHL previously raised crowdfunding investment in 2018 through Triodos Bank UK, as well as receiving a loan from the sustainable bank. This funded over 50 heat pump installations in new-build retirement homes. Due to the company’s growth and future ambitions, it’s repaying its initial bond and now raising new capital to position it for the next phase of its growth. Existing bondholders have had the opportunity to roll over their investment in the new bond, therefore the company is well on its way to raising the £3 million total new bond investment they require in total.
The seven-year bond will pay investors 5% gross interest per year, with a minimum investment of £50. As with all investments, interest payments and return of capital are not guaranteed.
The UK Government has announced two significant regulatory changes that will increase the uptake of heat pumps. The most significant for RHHL is that from 2025 gas boilers will be banned in new homes which must then be built with low-carbon heating systems and high levels of energy efficiency. This regulation creates a significant opportunity for the company as a leader in the design and installation of heat pumps. RHHL is exploring working with a range of clients for future work, both current and new.
Alastair Murray, director and founder of RHHL, commented: “Low-carbon heating is critical to the fight against climate change and with the UK Government supporting this energy transition through regulatory changes we are focused on how we can support its implementation. Triodos crowdfunding investors can be a part of this journey with us, supporting our desire to change the way homes are heated that helps to protect the planet and its people.”
Richard O’Brien, corporate finance manager at Triodos Bank UK, added: “It’s been exciting to see the success RHHL has achieved in the last couple of years, and they are well positioned to be at the forefront of this energy transition. We’re really pleased to offer our investors the opportunity to support such a company in its ambitions and to help to reduce the UK’s carbon emissions, which all help in the road towards net zero.”
The bond is available within the tax-efficient Innovative Finance ISA (IFISA) wrapper. Like all ISAs, the IFISA is subject to eligibility criteria and ISA eligibility does not guarantee returns or protect consumers from losing their money.
To find out more, please visit the Triodos crowdfunding platform.
Investments offered on the Triodos crowdfunding platform are not readily realisable, which means that they may be difficult to sell, and you may not get back the full amount invested. Investments are not covered by the Financial Services Compensation Scheme (FSCS) and your capital is at risk and returns are not guaranteed. Repayment of capital and interest will be dependent on the success of the organisation's business model and past performance isn’t a reliable indicator of future performance. You should always read the offer document in full before deciding whether to invest as it will cover risks specific to an individual investment. You can read more about the general risks associated with making these types of investments here. If you are unsure if any of these investments are right for you, you should contact an Independent Financial Adviser.
Notes to editors
For further information and photos please contact:
Ellie James, Triodos Bank
- 0117 311 0241
Renewable Heat Holdings Limited (“RHHL” or the “Company”) is an industry leader in ground source heat pump technology and amongst the largest owner-operators of ground source heat pump systems in the UK. Established in 2018, RHHL owns and operates over 70 projects with a combined capacity of 13.35MW, generating more than 20,000MWh of renewable heat per year. All of these assets have been installed in new-build retirement homes.
Ground source heat pumps
A ground source heat pump system harnesses natural heat from underground by pumping a mixture of water and antifreeze through a set of buried pipes. Heat from the ground is absorbed into the fluid within the pipes and passed through a heat exchanger within the heat pump and then into the building to heat radiators, underfloor or warm air heating systems and hot water.
A ground source heat pump effectively performs the same role as a boiler in a central heating system but uses ambient renewable heat from the ground rather than burning fossil fuel to generate heat. The pump requires electricity to run but uses less electrical energy than the heat it produces and therefore generates lower CO2 emissions.
About Triodos Bank
Founded in 1980, Triodos Bank has become a frontrunner in sustainable banking globally. As an independent bank that promotes responsible and transparent banking, it does not see any conflict between a focus on people and the planet and a good financial return. Instead it believes that they reinforce each other in the long-term.
Triodos Bank has banking activities in the Netherlands, Belgium, the UK, Spain and Germany as well as Investment Management activities based in the Netherlands but active globally. Triodos Bank co-founded the Global Alliance for Banking on Values (GABV), a network of 63 sustainable banks. Together these banks want to grow sustainable banking and its impact on the real economy substantially.
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This financial promotion has been issued and approved by Triodos Bank UK Limited for the purposes of section 21 of the Financial Services and Markets Act 2000. Triodos Bank UK Ltd. Registered Office: Deanery Road, Bristol, BS1 5AS. Registered in England and Wales with registered number 11379025. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 817008. Details about the extent of our regulation by the Financial Conduct Authority and Prudential Regulation Authority are available from us on request.