Great British Energy (GBE) has made its first significant solar investment, committing £7.5 million to solar-thermal innovator Naked Energy1, as part of a total £8.8 million deal that also includes investment from Barclays Climate Ventures. This funding is earmarked for a new UK automated manufacturing facility for Naked Energy's Virtu solar-thermal technology, aiming to bring production in-house and reduce unit costs, bolstering the UK's clean energy supply chain.
This investment highlights the UK's commitment to a future powered by clean, abundant energy. At Fuse Energy, we share this vision, working to make energy simpler and more affordable for your home. Click here to switch to Fuse Energy today.
The strategic mandate of great British energy
GBE is a publicly owned energy investment company established to accelerate clean energy deployment, create jobs, and ensure the UK benefits from secure, homegrown energy. Its mission is to drive clean power deployment, boost energy independence, and support related supply chains, with a mandate to invest in and co-develop clean energy and energy storage projects. GBE aims to complement, rather than compete with, the private sector, stimulating investment and taking minority stakes in projects. The organisation's strategy is built around four pillars: creating jobs, accelerating clean energy deployment, driving down costs, and opening up new industries.
Details of the Naked energy partnership
GBE's inaugural major solar investment sees £7.5 million directed towards Naked Energy, a British design and engineering business specialising in solar thermal and solar PVT (photovoltaic-thermal) technology. This investment forms part of an £8.8 million total deal, with additional funding from Barclays Climate Ventures. The primary goal of this funding is to establish a new automated manufacturing facility in the UK for Naked Energy's Virtu solar-thermal collectors. This move is expected to bring production in-house, reduce unit costs, and create over 140 jobs in the UK.
Understanding solar thermal technology
Solar thermal technology captures energy from the sun to generate heat, often for hot water or space heating, rather than directly producing electricity like traditional solar photovoltaic (PV) panels. This approach is crucial because heat demand accounts for a significant portion of global energy consumption, with a major share still supplied by fossil fuels. Naked Energy's Virtu collectors are designed to provide high-density solar thermal and hybrid solar PVT energy, helping to reduce fossil fuel use and energy costs.
Efficiency and applications of the Virtu system
Naked Energy's Virtu system is a high energy-density solar technology, capable of generating both renewable heat and electricity. The Virtu system can utilise up to 85% of available roof space for energy generation, significantly more than the approximately 50% typically achieved by conventional solar panels. This maximises energy output from limited rooftop areas. The technology is versatile, suitable for medium to large-scale applications in residential, commercial, industrial, and sports and leisure sectors. Examples include installations at the British Library and Wimbledon Tennis Courts, where Virtu collectors support hot water systems.
Establishing an automated manufacturing facility
The investment from GBE and Barclays Climate Ventures is specifically directed towards setting up an automated manufacturing facility in the UK for Naked Energy's Virtu technology. This facility will enable the company to bring its production processes in-house, which is expected to lead to reduced unit costs and greater control over the supply chain. This aligns with a broader government initiative to reindustrialise Britain by backing UK supply chains in clean energy.
Economic benefits and employment opportunities
The new manufacturing facility is projected to create over 140 jobs in the UK. This job creation contributes to the UK's economic growth and supports the development of a skilled workforce in the clean energy sector. Energy Secretary Miatta Fahnbulleh emphasised that "Homegrown, clean power is an opportunity to reindustrialise Britain as we’re backing UK supply chains to help deliver the energy transition". This investment underscores the potential for the energy transition to generate significant economic benefits beyond just energy production.
The overlooked role of heat in energy consumption
Despite widespread focus on electricity generation and transport, heat remains a significant and often overlooked contributor to fossil fuel consumption and carbon emissions. Heat demand accounts for over half of all energy consumed, with a major share still provided by fossil fuels. Decarbonising heat is therefore a critical challenge for achieving net-zero targets. Naked Energy's CEO, Christophe Williams, highlights this, stating that "Heat is too often overlooked in the energy debate, despite accounting for a major share of fossil-fuel consumption".
Deploying renewable heat in public and industrial buildings
The Virtu system is particularly well-suited for deploying renewable heat in public buildings and industrial sites. Its high energy density and efficiency make it an attractive option for large-scale applications where significant heat demand exists. GBE and Naked Energy plan to explore how solar-thermal technology can be installed on more public-sector buildings, expanding its reach beyond existing installations like the British Library and Wimbledon. This focus on public and industrial sectors is vital for making substantial progress in heat decarbonisation.
Reducing reliance on fossil fuels and gas imports
The investment in Naked Energy directly supports the UK's efforts to reduce its reliance on fossil fuels and volatile gas imports. Dan McGrail, CEO of GBE, underscored this challenge, stating, "Cutting our reliance on gas is one of the biggest challenges we face, both for energy security and for keeping bills down". By fostering homegrown clean power solutions, the UK can enhance its energy security and insulate consumers from global energy price shocks.
Contributing to the UK's energy transition
This initiative is a tangible step towards the UK's net-zero commitments and its broader energy transition goals. By investing in innovative technologies and domestic manufacturing, GBE is helping to build a resilient, clean energy system. The focus on solar thermal technology addresses a crucial gap in the energy mix, complementing other renewable sources and accelerating the shift away from carbon-intensive heating.
GBE's role in shaping the energy landscape
GBE is positioned as a key player in shaping the UK's future energy landscape. Its mandate includes accelerating clean energy deployment and supporting related supply chains, ensuring that UK workers and communities benefit from the transition. GBE's investment approach involves co-investing with the private sector to stimulate growth in nascent and developing clean energy technologies. This strategic investment in Naked Energy demonstrates GBE's commitment to diverse renewable solutions beyond traditional solar PV and wind.
Long-term vision for homegrown power
The long-term vision is to create a robust, homegrown clean energy sector that provides energy abundance and systemic resilience for the UK. By backing UK supply chains and fostering innovation, the government aims to reindustrialise Britain and reduce dependency on imported energy. This investment in solar thermal technology, with its potential for widespread deployment and significant carbon savings, represents a forward-thinking approach to achieving a sustainable and secure energy future for the nation.
Managing your home's energy should be straightforward and efficient. While GBE is investing in large-scale solutions, Fuse Energy is focused on bringing you clear pricing, real-time usage data, and 24/7 human customer support to help you take control of your energy bills. We believe in a future with abundant, clean energy for every home. Click here to switch to Fuse Energy today and explore our mission here.
References
- Energy Live News. Great British Energy invests £8 million in solar firm
