# Net Zero Terrace: £7.19m trial of shared-loop heat pumps for UK terraces [![David Coleman](/uploads_resolved/images/261/320.webp)](/authors/david-coleman/ "Author profile for David Coleman")[David Coleman](/authors/david-coleman/ "Author profile for David Coleman") Founder & Renewable Energy Author, kilowatts.uk Article # Net Zero Terrace: £7.19m trial of shared-loop heat pumps for UK terraces Published 2026-10-28 04:46:34 Updated 2026-10-27 21:47:33 Ofgem SIF awarded £7.19m on 8 October 2026 for Electricity North West Net Zero Terrace demo. What the shared ground loop is, who owns it, and what it is not. [ Preferred on Google](https://www.google.com/preferences/source?q=https://kilowatts.uk) ![What the £7.19 million award actually is](/uploads_resolved/images/1024/320.webp) ## What the £7.19 million award actually is Ofgem’s Strategic Innovation Fund has awarded £7,188,365 to Net Zero Terrace, a beta-stage demonstration led by Electricity North West. UKRI published the cycle-six decisions on 8 October 2026. The award sits inside a £16.2 million round covering sixteen discovery, alpha and beta projects. This is demonstration funding for a network innovation trial. It is not a household grant, not a national heat-pump voucher, and not proof that the system already works in occupied streets. The money is meant to take a shared-ground, indoor heat-pump model from earlier studies into a living demonstration. Partners named on the UKRI summary are Electricity North West as lead, Northern Powergrid, Buro Happold, UK Power Networks, the Centre for Energy Equality, Looped Energy Communities and Greater Manchester Combined Authority. Earlier project pages also list Rossendale Borough Council, Kensa, the University of Salford and others on related work. Partner lists can change between funding rounds, so treat the UKRI beta list as the one attached to this award. > If you are looking at a heat pump for your own house today, this trial does not replace a normal \[{~a.href='https://kilowatts.uk/booking/?kwrf=8SA53&kwpid=6&kwlid=9' title="Book a ## What the £7.19 million award actually is If you are looking at a heat pump for your own house today, this trial does not replace a normal [survey](https://kilowatts.uk/booking/?kwrf=8SA53&kwpid=6&kwlid=9 "Book a free home energy survey") or the [Warm Homes Loan Scheme](https://kilowatts.uk/resources/warm-homes-loan-scheme-2026/ "Warm Homes Loan Scheme 2026"). It is a street-scale experiment. ![Why terraces are a hard heating problem](/uploads_resolved/images/1025/320.webp) ## Why terraces are a hard heating problem Britain has a large stock of two- and three-bedroom terraces. Many have small or no rear gardens, shared walls, limited loft space, mixed ownership and fabric that was never designed for a modern heat pump. An outdoor air-source unit needs space, air flow, access and a neighbour-tolerant noise path. On a tight terrace that is often the sticking point, not the thermodynamics. The project’s earlier work argued that a shared ambient loop plus a small indoor heat pump can impose less electricity demand than fitting direct-electric boilers street-wide. That is a modelling claim from the Alpha / NIA stage, not a measured result from this new beta. Direct-electric heating is a harsh counterfactual. It does not tell you how the idea compares with a well-designed individual air-source heat pump on a house that can take one. The project’s earlier work argued that a shared ambient loop plus a small indoor heat pump can impose less electricity demand than fitting direct-electric boilers street-wide. That is a modelling claim from the Alpha / NIA stage, not a measured result from this new beta. Direct-electric heating is a harsh counterfactual. It does not tell you how the idea compares with a well-designed individual air-source heat pump on a house that can take one. > The project’s earlier work argued that a shared ambient loop plus a small indoor heat pump can impose less electricity demand than fitting direct-electric boilers street-wide. That ## How the shared ambient loop is supposed to work The published architecture is a community system, not a box on every back wall. Street or pavement boreholes collect low-grade heat from the ground. A shared ambient loop carries that heat along the street at a modest temperature. Inside each participating home, a compact “shoebox” heat pump lifts that loop temperature to something the radiators or underfloor system can use. Solar generation and smart energy management sit on top of that, with capital recovered over time through a standing charge rather than an upfront kit invoice. That is closer to a small ambient heat network than to a conventional district-heating main. The loop is not meant to deliver ready-to-use hot water on its own. The household still has a heat pump. The difference is where the heat source sits, and who owns the hole in the street. ## How the shared ambient loop is supposed to work Kensa-style shared ground loops already exist in UK housing. The claimed novelty here is packing that idea with indoor units, street-scale solar, a fairness-by-design commercial model and DNO-led network integration so a whole terrace can move together. ## What residents would actually own This is the part a funding announcement usually skips. The underground boreholes, the street loop and the network interface are infrastructure. In a DNO-led SIF trial they are unlikely to sit on the household’s title in the way a boiler does. The indoor heat pump, controls and in-home pipework are more likely to be the resident-facing kit, but the contract will decide who owns them, who maintains them, and what happens if you sell the house. Ask, if a street near you is ever offered this: ## What residents would actually own \- Who owns the boreholes and the loop after the trial? - Who owns the indoor unit, and is it listed on the EPC or the sale pack? - Can you change electricity supplier, or is the heat tied to one commercial wrapper? - What happens if you refuse to join while the neighbours join? - Who pays if a borehole under the pavement fails in year twelve? Until those answers are in a resident contract, “no upfront cost” is a slogan. ## What no upfront cost really means Buro Happold and Electricity North West have described the model as no upfront cost for householders. The planner brief is right to flag the catch. Capital still exists. It is recovered through long-term standing charges or equivalent payments. That can be a fair way to spread cost across mixed tenure: owner-occupiers, private landlords and social housing on the same street. It can also lock a household into a charge they do not control, with weaker rights than a boiler they bought. The project’s own Alpha work found that making the final customer price affordable remained challenging. That warning is still live. The beta award does not erase it. Compare that with a household that can use a Boiler Upgrade Scheme grant where eligible, or a [Warm Homes loan](https://kilowatts.uk/resources/warm-homes-loan-scheme-2026/ "Warm Homes Loan Scheme 2026") on an MCS heat pump. Those are individual routes. Net Zero Terrace is a street route. They are not substitutes until a specific street is offered the trial. ## What the living demonstration still has to prove UKRI’s summary says the project will showcase a novel solution for six million terraced homes and enable communities to replicate it. Six million is the estimated housing archetype, not the number of homes this £7.19 million will touch. The announcement does not name the final street, the number of participating homes, or the install timetable. A useful demonstration would publish, in public: \- Seasonal performance of the indoor units on the shared loop, not a lab COP. - Electricity demand per home versus a fair counterfactual, not only versus electric boilers. - Standing-charge levels, tenure mix, and what happens when someone opts out. - Network impact at the substation, including whether active network management is required. - Noise, disruption and pavement works in a lived-in street. ## What the living demonstration still has to prove Until those numbers exist, treat the award as permission to try, not as a product you can order. ## What this means if you live in a terrace now If your terrace can take an outdoor unit, a conventional MCS air-source heat pump remains the product that exists today. If it cannot, a shared ground loop is one of the serious alternatives, and this trial is worth watching. It is not yet a national scheme. Do not wait for Net Zero Terrace if the roof, the fabric and the electrics are ready. Get a design, check grant and loan eligibility, and [book a survey](https://kilowatts.uk/booking/?kwrf=8SA53&kwpid=6&kwlid=9 "Book a free home energy survey"). Confirm current SIF project pages on UKRI and Electricity North West before you treat any street as enrolled. This article reflects the 8 October 2026 UKRI / Ofgem SIF announcement. Tags: [Net zero terrace](/tags/net-zero-terrace/ "Net zero terrace")[Heat pumps](/tags/heat-pumps/ "Heat pumps")[Terraced homes](/tags/terraced-homes/ "Terraced homes")[Ofgem sif](/tags/ofgem-sif/ "Ofgem sif")[Shared ground loop](/tags/shared-ground-loop/ "Shared ground loop") [ Preferred on Google](https://www.google.com/preferences/source?q=https://kilowatts.uk) Solar comparison ## Compare solar for your property Enter your postcode to assess your roof, compare solar options and connect with trusted UK installers. - Free postcode start - Home, business and industrial - RoboMo™ maps your roof ## See which panels fit your roof Choose home, business or industrial, then enter your postcode. RoboMo maps the roof and ranks panel brands by fit. - Home - Business - Industrial UK postcode Fast, free and no obligation to proceed. **1. Postcode** Start the assessment for your property. **2. Pin the roof** Mark the array on the map. **3. Compare** RoboMo™ builds your options. ![Battery storage ROI calculator](/uploads_resolved/images/1012/320.webp) Battery ROI tool ## See what a battery saves on your bill Enter the day rate, off-peak rate and export rate. The calculator ranks batteries in the Kilowatts shop over 10 years. Home batteries also suit offices and small commercial sites. [ **Home** Houses and flats ](/services/residential/renewable-energy/residential-solar-panel-installation/batteries/) [ **Business** Offices and small sites ](/services/commercial/renewable-energy/commercial-solar-panel-installation/batteries/) [ **Industrial** Factories and warehouses ](/services/industrial/renewable-energy/industrial-solar-battery-storage/#get-quote-now) [Shop batteries](/shop/kilowatts-uk/range/solar-batteries/) ## Related services - [home heating, cooling and ventilation services](/services/residential/heating-cooling-ventilation/) - [home ground source heat pumps](/services/residential/heating-cooling-ventilation/residential-ground-source-heat-pump-installation/) - [doorbell camera fitting for your home](/services/residential/smart-home-security/residential-doorbell-camera/) - [home rooms and spaces services](/services/residential/rooms-and-spaces/) - [switching your home to LED lighting](/services/residential/lighting/residential-led-lighting-upgrades/) Reading ## Sources & further reading [![Net zero reporting and on-site solar for UK companies: UK](/uploads_resolved/images/812/320.webp)Net zero reporting and on-site solar for UK companies: UK On-site solar supports UK company net zero reporting only where self-use cuts the electricity bought. Export does not reduce the Scope 2 total. Read article](/resources/net-zero-reporting-and-on-site-solar-for-uk-companies/ "Net zero reporting and on-site solar for UK companies: UK")[![Net Zero Energy Prices: It's Not the Whole Story](/uploads_resolved/images/546/320.webp)Net Zero Energy Prices: It's Not the Whole Story Energy Prices Rising Under Net Zero, But It Is Not the Whole Story. Read article](/resources/energy-prices-rising-under-net-zero-uk/ "Net Zero Energy Prices: It's Not the Whole Story")[![UK Energy Shake-Up 2026: Heat Pumps & Solar](/uploads_resolved/images/219/320.webp)UK Energy Shake-Up 2026: Heat Pumps & Solar The UK is breaking the link between gas and electricity prices. Discover what this means for heat pumps, solar panels, battery storage, and your energy bills. Read article](/resources/uk-energy-shake-up-2026-what-it-means-for-batteries-heat-pumps-solar/ "UK Energy Shake-Up 2026: Heat Pumps & Solar")[Heat Pump Installation: An Introduction Heat pump installation replaces conventional boilers by extracting heat from air or ground, delivering efficient heating and cooling with lower carbon emissions. Read article](/resources/heat-pump-installation-introduction/ "Heat Pump Installation: An Introduction") Solar panels ## Solar panels [![Canadian Solar TOPBiHiKu7 750W](/images/panels/canadian-solar-topbihiku7-750w.jpg) 750WCanadian Solar TOPBiHiKu7 750W Canadian Solar Canadian Solar · 750W View details](/services/industrial/renewable-energy/industrial-solar-panel-installation/solar-panels/canadian-solar-topbihiku7-750w/)[![DAS-DH108NE 530W](/images/panels/das-solar-das-dh108ne-530.jpg) 530WDAS-DH108NE 530W DAS Solar DAS Solar · 530W View details](/services/commercial/renewable-energy/commercial-solar-panel-installation/solar-panels/das-solar-das-dh108ne-530/)[![Perlight PLM-500H8NHB-108 505W](/images/panels/perlight-plm-505h8nhb-108.jpg) 505WPerlight PLM-500H8NHB-108 505W Perlight Perlight · 505W View details](/services/commercial/renewable-energy/commercial-solar-panel-installation/solar-panels/perlight-plm-505h8nhb-108/) Shop ## Shop [![AIKO Solar Neostar G4-54Mb 490W](/images/panels/aiko-solar-aiko-a480-mce54mb.jpg) £127.64AIKO Solar Neostar G4-54Mb 490W View product](/shop/kilowatts-uk/panel-aiko-solar-aiko-a490-mce54mb/)[![Sungrow SG-48TG4D 475 W](/images/panels/sungrow-sg-48tg4d-455.jpg) £77.43Sungrow SG-48TG4D 475 W View product](/shop/kilowatts-uk/panel-sungrow-sg-48tg4d-475/)[![AIKO Solar Neostar G4-54Mb 485W](/images/panels/aiko-solar-aiko-a480-mce54mb.jpg) £126.33AIKO Solar Neostar G4-54Mb 485W View product](/shop/kilowatts-uk/panel-aiko-solar-aiko-a485-mce54mb/) ## Mo's Mission Nominations [**Garlinge Primary School & Nursery**I pass Garlinge Primary School & Nursery on Westfield Road and I keep looking at that roof. It is a proper local school, with a nursery a...](/solar-mission/garlinge-primary-school-nursery/) [**St Luke's Church of England Primary School**Coastal and inland weather around Jubilee Rd, Formby, Liverpool L37 2HW, UK still leaves St Luke's Church of England Primary School with...](/solar-mission/st-luke-s-church-of-england-primary-school/) [**Comberbach Primary School**Comberbach Primary sits on Mather Drive, a village school that Northwich's edge still thinks of as ours. Parents walk children in, neighb...](/solar-mission/comberbach-primary-school/) Write for Kilowatts.uk ## Got a trade and something worth saying? Write it here under your own name. Sign in, put a profile up, and start a guide. Pay only if you want more links from your articles out to your own site. ### Register Create a Kilowatts.uk account, or sign in if you already have one. ### Author profile Put your name, photo and experience on a public author page. ### Start creating Write a guide or a blog. Free authors can put one followed link to their own site in articles each month. [Write for us](/write-for-us/) [Register or sign in](/login/) ## Frequently Asked Questions ### Is Net Zero Terrace a heat-pump grant I can apply for? No. The £7,188,365 is Ofgem Strategic Innovation Fund money for a demonstration led by Electricity North West. It is not a household grant. ### What is a shoebox heat pump in this project? A compact indoor heat pump in each participating home that lifts heat from a shared ambient ground loop, rather than an outdoor air-source unit on the wall. ### Does no upfront cost mean the heating is free? No. Capital is recovered through long-term standing charges or similar payments. The project earlier work already flagged affordability as a challenge.