Two former Dyson engineers have raised millions of pounds to bring a battery-powered electric boiler to market, positioning it as a cheaper and less troublesome alternative to heat pumps for millions of British homes.
Wiltshire-based Luthmore was founded in 2022 by Craig Wilkinson and Martin Gutkowski, both former Dyson engineers who had previously worked together on projects such as the vacuum cleaner maker’s abandoned electric car program. Their aim is to replace gas combi boilers in small and medium sized homes with an all-electric system that fits in the same space and delivers comparable performance.
The start-up has now raised a total of £12.4 million, including a recently completed and heavily oversubscribed funding round of £5.5 million. Backers include property developers, housing management companies, plumbing groups and high net worth individuals, as well as a £1m investment from the British Business Bank through the South West Investment Fund, delivered by The FSE Group.
As part of its next phase of growth, Luthmore has also appointed Hervé Dehareng, a former senior innovation director at Dyson, as CEO. Dehareng led the global launch of Dyson’s flagship products, including the hand dryer and bladeless fan, and previously held senior roles at Accenture.
“I want to make the Luthmore boiler the electric vehicle equivalent for home heating within three years,” Dehareng said.
Unlike heat pumps, which often require significant insulation improvements, larger radiators and outdoor units, the Luthmore boiler is designed to be a practical replacement for a gas combi boiler. The device is the same size as a standard boiler and uses lithium iron phosphate (LFP) batteries to store electricity when it is cheaper – such as overnight or from solar panels – and release it at higher output during peak demand.
The system provides hot water of up to 30kW and central heating of 10kW without the need for a hot water tank or radiator replacement. Wilkinson says this makes it suitable for apartments and townhouses where heat pumps are impractical due to lack of space or upfront costs.
“There are a significant number of homes where a heat pump is not appropriate,” he said. “Our boiler fits in the same space as a gas combi boiler and delivers similar performance without the inconvenience.”
The company estimates its target market to be five to six million UK households, particularly smaller properties switching to gas.
While Luthmore’s boiler undercuts the initial cost of heat pumps – it is said to retail at around £4,500, compared to £13,000 for a typical heat pump installation – the founders are open about the challenge posed by UK energy prices.
Electricity remains significantly more expensive than gas under Ofgem’s price cap, meaning running costs are higher. Luthmore estimates the annual heating and hot water costs for a typical two-bedroom apartment to be around £667, compared to £444 for a gas boiler and £556 for a heat pump.
“This is the reality of the UK energy system at the moment,” Wilkinson said, adding that levies and network charges disproportionately imposed on electricity risk jeopardizing the transition to electrified heating.
The funding round and leadership appointments come as the government prepares to publish its long-awaited Warm Homes Plan and implement the Future Homes Standard in 2026. Both measures are likely to accelerate the move away from heating with fossil fuels.
Gas boilers are already banned in new homes and while Energy Secretary Ed Miliband has backed away from an outright ban on replacing gas boilers by 2035, ministers remain under pressure to expand low-carbon heating options.
Currently only heat pumps qualify for grants of up to £7,500 under the Boiler Upgrade Scheme, although officials have said they are still investigating the role of alternative electrified systems.
For investors, Luthmore’s pitch is more about pragmatism than purity. “With regulatory tailwinds, a strong patent portfolio and early engagement with developers and installers, we see a compelling path for Luthmore to help households reduce emissions,” said Ralph Singleton of The FSE Group.
Whether battery-powered boilers can scale quickly enough and close the price gap between electricity and gas remains an open question. But with more than £12 million raised and the political push to decarbonise homes increasing, Luthmore believes there is room in the market for an electric option that sits somewhere between gas boilers and heat pumps.
