Renewables fund Thrive has made its first investment in heat pumps. The firm has put £350k into a scheme that funds and installs heat pumps into retirement homes and makes a guaranteed 20-year return from renewable heat subsidies.
Rendesco this summer commenced work at its 55th site. It plans to deploy 100 by the time the Renewable Heat Incentive (RHI) ends in 2021.
The firm designs, installs and maintains the ground source heat pump system for 20 years, free of charge to the property owner. The client receives renewable heat from the system which can be used for central heating, hot water and underfloor heating.
Rendesco retains ownership of the system and leases the client’s plant room. Index-linked RHI payments provide its return on investment over a 20-year period. The company anticipates that will deliver a £44m income stream.
Thrive’s investment in Rendesco forms part of a £5.5 million seven-year bond to finance its rollout plans. Managing director Matthew Clayton said the company will use the learnings from its initial foray into heat pumps to invest in further renewable heat projects “in the near future”.