UK energy technology company, Flow Energy, is set to launch an innovativein January 2015.
Flow’s boiler, the first of which is due to come off the production line this month, generates low cost, low carbon electricity as it uses gas to heat a home.
It has the potential to generate around 40% of a household’s electricity, saving a customer around £200 a year – and generating around £300 a year on top in ‘Feed in Tariff’ payments.
It also reduces a household’s carbon emissions by roughly 20%, the same as driving 4,000 miles less in the average UK car, because it is three time more efficient in converting gas into electricity than a power station.
The Flow boiler was designed in Capenhurst and is being manufactured in Livingston, Scotland.
Flow’s Capenhurst operation employs 70 staff and it also operates a training centre for engineers in Runcorn.
The company says its boiler has the potential to revolutionise the energy industry as it enables customers to generate their own low cost, low carbon electricity in the home. Every 500,000 Flow boilers installed is the equivalent of one large central power station.
Flow bosses say that with millions of Flow boilers installed, significant strain would be taken off the UK’s power station network.
The boiler is offered as part of a deal which guarantees that customers will receive the cost of the unit back through a reduction in their home energy bills over five years, if they switch their home energy to Flow and assign the Feed in Tariff to the company as well.
Flow, which is also an energy supplier, pledges to provide gas and electricity at market competitive rates, undercutting the price offered by the ‘Big Six’ energy suppliers.
It says this means the only upfront investment required by customers is to pay for the installation of the boiler.
The value of the electricity generated and the Feed in Tariff pays off the cost of the boiler over the first five years, it claims.
After five years, customers and Flow will share the value of the electricity generated and the Feed in Tariff payments – a benefit of around £250 a year to the customer.
As part of this agreement, Flow will provide an ongoing warranty on the electricity-generating power module.
Flow chief executive Tony Stiff said: “We know many customers are worried about one-off household costs like replacing a boiler.
“We also know they want lower energy bills and that many people would like to be greener, without incurring additional expense.
“We think the way to deliver these benefits to customers is through technology – specifically through our, wrapped up in our ‘pays for itself’ deal.”
He added: “We’ve spent 10 years and £60m developing our boiler and we’ll launch in January 2015. We aim to install 20,000 boilers in our first year – and then expand quickly after that.”
Flow was listed on the AIM exchange in 2006 and is owned by private and institutional investors including Aviva.
Its home energy business supplies more than 30,000 customers who generate in excess of £40m in revenues for the company.
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