Aira: 'Spotify of heat pumps' opening Sheffield training academy as part of £300m UK investment

In August the firm purchased Sheffield home renewable specialist All Seasons Energy as part of its strategy.

It now intends to open a Northern Academy alongside the All Seasons Energy site to train hundreds of heat pump installers for this region. Aira UK CEO Daniel Särefjord told The Yorkshire Post he hopes the academy will be open by the end of this year.

The Government aims to increase heat pump uptake to 600,000 installations a year by 2028 and has recently raised the grant to consumers buying one from £5,000 to £7,500. An average air source heat pump installation can cost between £10,000 and £13,000.

Around 90 per cent of British homes are suitable for heat pump installation but the National Infrastructure Commission has said the current speed of the roll-out is “not cutting the mustard” and more Government support may be needed to encourage people to switch from gas boilers as part of the national drive for net zero.

Aira’s business model sees the company manufacture, install and maintain heat pumps with zero upfront fees and a pay-monthly subscription similar to those seen with music and TV streaming services such as Spotify and Netflix.

Mr Särefjord said: “We’re a Swedish green energy tech company wanting to drive the green transition to take Europe off gas.

“We looked at this opportunity and almost couldn’t believe it was true when we saw in Europe 10 per cent of total emissions come from residential heating. It is even worse in the UK, with 16 per cent.

“In Scandinavia, it is one per cent. We left fossil fuels in the 80s and 90s, whereas most of Europe is still very much connected to gas.

“We will provide a whole system of clean energy tech products to consumers. It is from development design to manufacturing to marketing and selling and installing, but also aftercare and financing. You should think about us as a Spotify for clean energy tech rather than an installation company.

“We think this is how it becomes accessible to the many. It should not be a very big capital investment, it should be an accessible service.”

He said the increase to the Government grant is “a big step in the right direction” as it takes the personal cost down to the same level as buying a new gas boiler.

Heat pumps maintain a constant ambient temperature in a property rather than providing a rapid burst of heat like a boiler. A recent survey found more than 80 per cent of people who had installed one were satisfied with their choice.

Mr Särefjord said Aira is already receiving strong demand from UK consumers – typically driven by a desire to cut their energy bills ahead of the environmental benefits.

“We have been overwhelmed by the response already,” he added.

“We expect that the average UK family can save 25 per cent on their energy bills by getting a heat pump. Given it is one of the biggest bills a household will have, the fact you can save money and save 75 per cent of your emissions, it is a double win.”

Energy Security Secretary Claire Coutinho said: “Families should not have to choose between cutting costs and cutting emissions which is why we increased our Boiler Upgrade Scheme by 50 per cent to £7,500 grants – making our scheme one of the most generous in Europe.

“Our plan is working, and we are seeing an increase in applications. It’s fantastic that Aira is investing £300m in the UK heat pump market to help further rollout.

“Their investment will also create 8,000 new jobs here in the UK, growing our economy and helping us make the green transition.”