Case Study

Low-carbon heating network powers 114 new homes in South Wales

At Parc Eirin in South Wales, 114 new homes are being built to meet the UK's future housing and climate standards - without a gas boiler in sight. Instead, every home will be connected to a networked ground source heat pump system, delivering clean, efficient, affordable heating and hot water.
  • LocationTonyrefail, South Wales
  • SectorPrivate

Key facts

  • Project: Parc Eirin – Second phase
  • Location: Tonyrefail, South Wales
  • Homes: 114Housing DevelopmentsHousing Developments new build homes, 81 two and three-bedroom houses and 33 one-bedroom flats
  • Heating technology: Shoebox NXProductKensa Shoebox NX ground source heat pumps
  • Infrastructure: Shared ground loop array backed by Octopus Energy Generation managed funds
  • Funding: £17.5million - Development Bank of Wales and £7million in Welsh Government funding
  • Additional features: Solar PV, battery storage
  • Completion: End of 2027
  • Project partners: Kensa, Tirion Homes, Octopus Energy Generation, Welsh Government

Delivering sustainable homes with networked ground source heat

At Parc Eirin in South Wales, 114 new homes are being built to meet the UK's future housing and climate standards - without a gas boiler in sight. Instead, every home will be connected to a A decarbonisation solution for over 60% of UK homesNetworked Heat Pumpsnetworked ground source heat pump system, delivering clean, efficient, affordable heating and hot water.

Kensa's ultra-compact Shoebox NXProductShoebox NX heat pumps will be installed inside each home, drawing renewable heat from a shared network of underground pipework. This networked heat pump solution offers a scalable, long-lasting heating solution that is already in use across thousands of UK properties.

Project outcomes

  • 114 homes with clean, reliable heat and hot water
  • EPC A for all properties
  • Zero reliance on fossil fuels
  • Significantly lower carbon emissions
  • Low heating and hot water costs for residents
  • Scalable model for other Housing DevelopmentsHousing Developmentsnew build housing developments

Supporting the Future Homes Standard

With the Future Homes Standard 2025: what it means for developers, planners, residents and the UK's heating future Future Homes Standard & Building Regulation Changes 2025Future Homes Standard on the horizon in England, and gas heating on the way out, the need for reliable low-carbon alternatives is growing fast. Parc Eirin demonstrates how networked ground source heat pumps can help housebuilders meet and exceed these standards, even in rural or harder-to-connect sites.

This project also includes solar panels and battery storage, giving residents more control over their energy and further reducing carbon emissions.

How the funding model works

What sets this project apart is its investor-funded clean heat network. Pump it up: Octopus Energy and Legal & General make Britain’s biggest investment in ground source heat pumpsPress ReleaseOctopus Energy Generation funds and owns the underground infrastructure - the What are Ground Source Heat Pump Boreholes?Boreholesboreholes and shared pipework - while Kensa delivers the heat pump systems in each home.

This innovative model:

  • Removes upfront infrastructure costs for developers and homeowners
  • Makes clean heat affordable for homeowners and tenants
  • Creates a long-life utility asset that can attract private capital - including pension fund investment

Residents simply pay a small standing charge to connect to the network, much like they would with gas. It's a practical, scalable approach to decarbonising home heating that mimics what consumers are already used to today.

Building on proven success

The current work at Parc Eirin is the second phase of the development that Kensa has been involved in; the first phase was completed in 2020 and included 111 properties connected to a networked heat pump system through developer Tirion, each fitted with a Kensa Shoebox heat pump.

The proven performance and resident benefits have helped unlock this expanded networked heat pump rollout at Parc Eirin - resulting in the client reengaging with Kensa as part of a broader shift toward decentralised clean heat infrastructure across the UK.

What residents think

Elfed – Parc Eirin resident of 2 and a half years said:

We've always found the Kensa heat pump to be a piece of equipment that's quietly doing its job with very little interaction from us. We have a comfortable temperature in the house at all times. So yeah, it's providing us with a very low energy bill in terms of the heating and hot water. 
This is a four-bedroom detached house, and we run an electric vehicle as well. In terms of the export and import, we're on around about £80 to £90 a month. But when you factor in that we're driving an electric vehicle 7,000 miles a year as well, the actual energy costs of the house are very low compared to previous homes I've lived in. 
When you sit down and think about it, and you compare it to burning gas, it does give you a sense of well-being as well. Like you know, not only are your bills low and your house is really comfortable, but you're doing your bit to sort of reduce carbon emissions.

Tamsin Lishman, CEO of Kensa said:

Kensa's unlocking of third-party institutional investment is a major milestone for ground source heat pump deployment, and will unlock access to deliver energy-secure heating for millions of homes, whether new build or existing homes.
By turning ground source infrastructure into an attractive investable asset for pension funds, we can address the financial barriers to adoption and empower the installation of highly efficient and affordable heating and hot water systems that cut both energy bills and carbon emissions.
At Kensa we are proud to be working with TirionHomes, Octopus Energy Generation and the Welsh Government on this project. Parc Eirin is a flagship initiative showing how we can deliver game-changing renewable heating at scale.

What our partners say

David Ward, CEO, Tirion Homes, said:

We are delighted to be delivering the heating solution for Parc Eirin with Kensa with the support of the Welsh Government. The delivery of renewable energy infrastructure remains a huge challenge, particularly in marginal locations, where project viability is challenging. Tirion has been working hard to identify opportunities to reduce the cost burden of energy infrastructure, and the Kensa model provides a commercial route to delivering our future heating needs without prohibitive up-front costs to consumers, whether they be house purchasers or those renting homes.
Tirion is at the forefront of developing new partnerships and collaborating with energy investors and looks forward to rolling out these technologies with our partners on all our future schemes.

Jayne Bryant, Cabinet Secretary for Housing and Local Government, said:

The homes at Parc Eirin will be climate-friendly and future-proof - a fantastic example of how the ground source heat pump network can be both innovative and commercially viable.
I'm so proud of our work with partners like Tirion Homes to deliver even more affordable and energy efficient homes across Wales, and I can't wait to see this project delivering for households, the local economy and the environment for many years to come.

A model for future developments

With completion due by the end of 2027, Parc Eirin is a clear example of how clean heating infrastructure can be delivered affordably and at scale. Kensa’s networked heat pump model offers a practical route to meet housing demand, achieve net zero targets, and future-proof the UK’s heating systems.

This isn’t just a one-off. We’re already rolling out this approach across multiple developments, bringing clean, cost-effective, climate-ready heating to more homes, and helping the industry prepare for the Future Homes Standard ready.

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