Ex-Dyson engineers develop electric boiler as alternative to heat pumps

Innovative Electric Boiler Offers Compact, Eco-Friendly Heating Alternative

Two former Dyson engineers have secured significant investment for their new venture, Luthmore, which aims to introduce battery-powered electric boilers as a greener substitute for traditional gas heating systems.

Founders Craig Wilkinson and Martin Gutkowski, based in Wiltshire, have designed a fully electric boiler that serves as a direct replacement for gas combi boilers in homes. Their unit matches the size of standard gas boilers and features an integrated battery, enabling rapid water heating without the need for a separate storage tank.

This compact design makes it an attractive option for households with limited space, especially those unable to accommodate heat pumps when replacing gas boilers.

Luthmore recently attracted £5.5 million in new funding from investors such as the British Business Bank and property developers, bringing their total capital raised to over £12 million.

Although the company acknowledges that running their electric boiler will cost more than using a gas boiler, the upfront price is considerably lower than that of a heat pump.

Government Policy and Market Trends

The government is currently reviewing whether to extend its boiler upgrade scheme—which presently only covers heat pumps with grants up to £7,500—to include electric boilers. Gas boilers were prohibited in new homes last year, and Energy Secretary Ed Miliband is working towards gradually eliminating their use as part of the UK's net zero goals, though a complete ban on new gas boiler installations by 2035 has been postponed.

Luthmore’s electric boiler is more affordable to purchase than a heat pump but incurs higher annual running costs. The company is initially focusing on apartments and smaller homes, such as terraced houses, which account for approximately five to six million properties in the UK.

Wilkinson and Gutkowski previously collaborated at Dyson, including on the company’s discontinued electric car project. They have now welcomed Herve Dehareng, another former Dyson executive, as Luthmore’s CEO.

“There are many homes where heat pumps simply aren’t suitable, so we’re providing a different solution,” Wilkinson explained. “Our boiler fits into the same space as a gas combi and doesn’t require a water tank or radiator upgrades. It’s ideal for smaller properties where heat pumps may not be practical due to size or initial cost.”

Addressing High Electricity Costs in the UK

Most electric boilers are limited to drawing 10 to 15 kilowatts from the mains, less than the 30kW output of a typical gas boiler. However, Luthmore’s built-in battery allows their boiler to deliver performance on par with gas models, providing enough hot water for a 20-minute shower.

The system can also be set to charge during off-peak hours if the household uses a smart electricity tariff, helping to reduce operating costs.

“Our technology delivers hot water at much higher power than standard electric systems, offering a similar experience to gas combis,” Wilkinson said.

Despite these advantages, the company concedes that the high price of electricity in Britain means their boiler will be more expensive to run than gas alternatives. Currently, electricity costs 26.35p per kilowatt hour, compared to just 5.93p for gas, largely due to additional levies on electricity bills for network improvements and green subsidies.

This price gap may discourage some consumers from switching to electric heating, even though it aligns with government climate objectives.

• Estimated annual running cost for a typical two-bedroom flat: £667 for Luthmore’s boiler, £444 for a gas boiler, and £556 for a heat pump.
• Luthmore’s upfront price: £4,500, compared to an average of £13,000 for a heat pump.

Since the boiler upgrade scheme began in 2022, over 177,000 heat pumps have been installed, including about 61,000 in 2025, according to MCS data.

Future Prospects for Electric Heating

The Department for Energy Security and Net Zero is still evaluating the potential of various electric heating solutions, including electric boilers. A spokesperson stated:

“We are investing an extra £1.5 billion in our warm homes initiative, bringing the total to nearly £15 billion—the largest public investment ever for home upgrades. While there are no current plans to add electric boilers to the upgrade scheme, we remain open to feedback from industry and consumers regarding alternative heating technologies.”