A pair of former Dyson engineers have secured £12.4 million to develop a battery-powered electric boiler aimed at offering a lower-cost, lower-disruption alternative to heat pumps for millions of UK homes. Wiltshire-based Luthmore, founded in 2022 by Craig Wilkinson and Martin Gutkowski, is targeting small and medium-sized properties looking to move away from gas heating.
Wilkinson and Gutkowski previously worked together at Dyson on projects including the company’s abandoned electric car programme. Their new boiler is designed as a near drop-in replacement for a gas combi, fitting into the same space while delivering comparable heating performance. The unit uses lithium iron phosphate (LFP) batteries to store electricity when it is cheaper, such as overnight or from solar panels, and release it at peak demand.
The company recently closed a heavily oversubscribed £5.5 million funding round, part of a broader total of £12.4 million. Investors include housing developers, residential management firms, plumbing companies, high-net-worth individuals, and a £1 million contribution from the British Business Bank through the South West Investment Fund.
As part of its growth plans, Luthmore has appointed Hervé Dehareng, a former senior innovation director at Dyson, as chief executive. Dehareng led global launches of Dyson products including the bladeless fan and hand dryer and has held senior roles at Accenture. “I want to make the Luthmore boiler the electric vehicle equivalent for home heating within three years,” he said.
The company estimates its target market at five to six million UK homes, particularly smaller properties transitioning away from gas. Compared with heat pumps, which can cost around £13,000 and require major insulation upgrades, Luthmore’s boiler is expected to retail at about £4,500. It avoids the need for outdoor units and larger radiators, offering a simpler installation for homeowners.
However, running costs remain a challenge in the UK energy market. Electricity under Ofgem’s price cap is more expensive than gas, meaning the Luthmore boiler would cost around £667 annually for a typical two-bedroom flat, compared with £444 for a gas boiler and £556 for a heat pump. Wilkinson noted that levies and network charges on electricity risk slowing the adoption of electrified heating.
The funding and leadership changes coincide with the UK government preparing to publish its Warm Homes Plan and implement the Future Homes Standard in 2026, both aimed at accelerating the shift away from fossil-fuel heating. Currently, only heat pumps qualify for grants under the Boiler Upgrade Scheme, although officials have indicated they are exploring support for alternative electrified systems.
Investors see the venture as pragmatic. Ralph Singleton of The FSE Group said: “With regulatory tailwinds, a strong patent portfolio and early traction with developers and installers, we see a compelling pathway for Luthmore to help households cut emissions.” Whether battery-powered boilers can scale quickly and bridge the electricity-gas cost gap remains uncertain, but Luthmore is betting there is a market for an electric option between gas boilers and heat pumps.
