Split ownership and heat network connection charge explained

Heat the Streets will have an immediate positive impact on the living environment of all households connected to the network. New, super-efficient heating systems combined with smart controls will provide reliable and affordable heat to properties.

Split ownership

The split ownership approach has been developed to support the rollout of networked heat pumps.

This approach helps to separate the homeowner from the upfront cost of infrastructure installation.

Much like the gas network Kensa Utilities will own and maintain the underground infrastructure and residents will pay to connect to the ground array.

The home-owner will be responsible for the heat pump inside their property.

Connecting to our network

The approximate cost of installation and equipment is £25,000 per property – this will be paid by Kensa.

The life of a ground source heat pump is estimated at 20 years, and they require minimal maintenance unlike oil or gas-based systems that require an annual service.

This will save homeowners the cost of replacing and maintaining their existing fossil fuel heating system. It will give them access to heating with no local combustion and therefore no local pollution. Local emissions related to heating and hot water will be eliminated immediately and the local area will continue to benefit in the long term.

Under Heat the Streets, developers, landlords and owner-occupiers paid nothing towards the installation of the shared ground loop array which accounts for around a third of the total installation cost of a GSHP system.

Social Housing landlords and developers will pay a contribution towards the internal installation, this contribution will subsidise private properties.

What does it cost?

Residents connected to our heat network will need to pay an annual connection fee (except for social housing tenants as this cost is to be picked up by their landlord). This applies to all connections, the cost of the annual connection fee varies between the housing groups, reflecting the cost of fee collection, the risk of missed payment, the capital contribution towards installation and the assumed energy demand.

For private households, this connection fee will be £350* per year over the course of 20 years. This fee is to allow Kensa Utilities to recoup some of the investment in the installation (which is not fully financed by ERDF) and pays for any maintenance and repair of the ground array.

*The connection fee is payable via monthly Direct Debit. At Kensa, we want to make sure this is affordable for all families, so we will be capping standing charge price rises in future years at a maximum of 5% per annum. This charge will be reviewed annually on the 1st of April, and we will let you know prior to this, or within one month, of the new cost.