Costs and heat network connection charge explained

Connecting to our network

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 and additional energy saving measures (dependant on property type) will provide reliable and affordable heat to properties which, without access to the gas network, have experienced high fuel prices. 

The approximate cost of installation and equipment is £23,000 per property is £23,000 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 will pay 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.

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.

What does it cost?

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.

Homeowners will be required to enter into a contract with Kensa Utilities prior to installation of their heating system. This contract will include a TP1 and the Service Agreement

TP1 is a covenant that is attached to the deeds for the property on the Land Registry. It’s a way of securing long-term agreements relating to the property and will transfer to the next occupant if you sell your house in future. 

TP1s are common in new housing estates as a way to secure maintenance costs for parking areas, roads and green infrastructure.