Strategic Innovation Fund

SHIELD

Project Data

Start date:

03/04/2023

End date:

30/12/2028

Budget:

£5,401,332

Summary

SHIELD is an ambitious initiative designed to make the transition to Net Zero more accessible for low-income residents, including those in social housing and other tenures who may not be able to afford to heat their homes or access low carbon technologies (LCTs). The project uses innovative solutions — such as distributed data centres for heating, along with solar panels and battery storage — to intelligently balance energy supply and demand.

Watch our SHIELD animation

What is the project about?

The current approach to decarbonising heat and energy in homes often excludes vulnerable and low-income households. For many, the upfront costs and ongoing expenses of low carbon technologies are simply unaffordable. SHIELD aims to change that — offering a scalable, innovative solution that helps lower energy bills for those most in need, while supporting the transition to Net Zero.

In the Beta Phase, we’re building on insights from the first two phases of SHIELD to deliver a pioneering Social Energy Services Company (Social ESCo) model. This model provides access to solar PV and battery storage for affordable electricity, and uses distributed data centres to deliver low-cost domestic heating.

Early results — based on current household energy performance and modelling — show that SHIELD’s approach could reduce energy costs by 20–40% or more, and cut carbon emissions by over 90%.

The ultimate goal of the SHIELD project is to reduce fuel poverty across the UK and improve the quality of life for people who are struggling to afford their energy bills.

How we’re doing it

During the Beta Phase, SHIELD will conduct a phased trial across up to 300 households to evaluate how a suite of low carbon technologies (LCTs) can reduce energy costs and carbon emissions — while ensuring homes stay warm and comfortable.

The trial will test a combination of innovative technologies and business models, including:

Solar PV and battery storage to supply affordable, renewable electricity
Thermify’s HeatHub, which uses waste heat from distributed cloud computing to provide low-cost heating
Peer-to-peer (P2P) energy trading as part of a smart local energy system (SLES)
A pioneering Social Energy Services Company (Social ESCo) model that sells unused electricity and grid services to help recover the initial costs of LCT installations

In parallel, the project will assess alternative LCT options — such as heat pumps and rooftop wind turbines — to identify ways to further boost SHIELD’s efficiency. As deployment begins, we’ll also explore how the commercial model can evolve to incorporate services like Distribution System Operator (DSO) flexibility and expanded P2P supply arrangements.

By developing and refining these innovations, SHIELD aims to cut energy bills and accelerate decarbonisation for fuel-poor households. After the trial concludes, insights from household feedback and performance data will inform large-scale rollout — with a long-term goal of delivering over 100,000 solutions per year by 2030.

What makes it innovative

SHIELD is innovative because of its funding model and the technologies which it uses.

The project will partner with an Energy Services Company (ESCo) which will use external funding to provide the electricity generation and heating technology to residents at zero upfront cost. This funding will be paid back using earnings made by the ESCo by also using the technologies to provide flexibility to the electricity network. This is a new kind of funding model which specifically benefits those in low-income households who would struggle to afford the upfront costs of expensive equipment.

SHIELD will also use an innovative new heating technology called the HeatHub. The HeatHub is installed in people’s homes and is used by other businesses for cloud data processing. This data processing generates waste heat and is captured in a heat storage device to be later used in the home at the point it is required.

What we’re learning

The SHIELD Beta phase is generating valuable insights into how innovative low carbon technologies, new business models and partnerships with social housing providers can make the net zero transition more accessible for households at risk of fuel poverty.

Pilot projects are essential for improving new technologies

The first HeatHub pilot installation has shown that the system can reliably deliver the temperatures residents request while reducing energy costs and carbon emissions. It has also highlighted opportunities to strengthen future versions of the technology, including enhanced leak protection, better resilience during power outages and improved heating controls. These early lessons are helping refine the system ahead of wider deployment.

Social housing innovation depends on collaboration

Working closely with social landlords has reinforced the importance of early and ongoing engagement to understand legal, operational and financial requirements. The project has demonstrated that introducing new technologies into existing housing portfolios requires flexibility and collaboration between landlords, funders, installers and residents. Feedback from housing providers has already helped simplify contractual arrangements, making future participation easier.

Simple customer experiences are critical

Collaboration with tenants, customer panels and consumer support organisations has shown that information, contracts and onboarding processes must be easy to understand and access. Clear communications, inclusive support materials and straightforward customer journeys are helping vulnerable households participate with confidence and understand how the service works.

Regulation is a key enabler of innovation

The project has identified challenges associated with existing energy metering arrangements and certification pathways for new energy services. Close engagement with Ofgem, DESNZ and industry stakeholders has been vital in identifying practical solutions and informing future regulatory approaches that could support wider adoption of low carbon technologies.

Early results indicate significant customer benefits

Monitoring from the pilot installation suggests participating households could reduce their electricity costs by around 20%, while also benefiting from lower carbon emissions and improved comfort. Early tenant feedback indicates reduced anxiety about heating costs and greater confidence in keeping homes warm affordably, providing encouraging evidence of the project’s wider social and environmental benefits.

Reports & Documents

SHIELD Show and Tell - Discovery

SHIELD End of Phase - Discovery

SHIELD Closedown Report - Discovery

SHIELD Show and Tell - Alpha

SHIELD Mid-Point Meeting - Alpha

SHIELD End of Phase - Alpha

SHIELD Closedown Report - Alpha

SHIELD Annual Report 2025

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