£1m SWIF Equity for Luthmore

Luthmore, the UK company behind a first‑of‑its‑kind zero‑emission electric combi boiler, has secured a £1m investment from the British Business Bank’s South West Investment Fund, delivered through appointed fund manager The FSE Group. The funding forms part of Luthmore’s most recent £5.5m oversubscribed raise, supporting the company’s move from development into commercial rollout.

The investment will help Luthmore scale production, expand its team, and accelerate market entry as the UK transitions away from gas heating in line with upcoming regulations such as the Future Homes Standard (2026). Demand for alternatives is increasing across developers, councils, installers, and housing providers seeking practical, space‑efficient routes to decarbonisation.

Ralph Singleton, Head of Equity South West at The FSE Group, said:
“With clear regulatory tailwinds such as the Future Homes Standard (2026), a defensible patent portfolio, strong early traction with developers and installers, and a scalable manufacturing plan, we see a compelling near‑term pathway for Luthmore to help households cut bills and emissions. We’re delighted to back a team with exceptional product pedigree as they scale a category defining British technology.”

Luthmore’s battery‑enabled electric boiler is designed as a direct replacement for a gas combi, fitting into the same space and delivering up to 30kW of hot water without the need for radiator upgrades. The design allows the unit to store off‑peak electricity via its LFP battery module, helping to lower running costs and support grid balancing. The system can also integrate with solar.

Alongside the investment, Luthmore has appointed Hervé Dehareng, former Senior Innovation Director at Dyson, as its new CEO to lead the commercial phase of growth. Dehareng brings extensive experience from global consumer technology launches, including Dyson’s hand dryers and bladeless fans.

“I want to make the Luthmore boiler the Electric Vehicle equivalent for home heating within three years. The significant investment of well over £12m into Luthmore over the past three years demonstrates that the sector hungry for innovative new solutions to support the diverse needs of the UK housing stock. The Luthmore boiler will help deliver government decarbonisation targets and present homeowners, developers, councils and social housing providers with an alternate, clean heat solution,” said Dehareng.

The purpose of the South West Investment Fund is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the South West. It offers a range of commercial finance options with smaller loans from £25k to £100k, debt finance from £100k to £2m and equity investment up to £5 million.

The fund is increasing the supply and diversity of early-stage finance for South West smaller businesses, providing funds to firms that might otherwise not receive investment and helping to break down barriers in access to finance.