Octopus Energy Group receives $800 million investment

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London-based Octopus Energy Group announced in a press release yesterday that existing shareholders had invested a fresh $800 million into the company, bringing the total valuation up to almost $8 billion – a 60% increase from its December 2021 valuation.

The company said in the announcement it would use the funds to accelerate international growth and expand low carbon technologies, especially heat pumps, leading to 3,000 new jobs in 2024.

Octopus Energy Group CEO and founder Greg Jackson said the company began manufacturing and installing heat pumps at the beginning of the year but now, “we now need to drive real scale.”

In September Octopus Energy Group unveiled its first heat pump – the 6 kW Cosy Octopus – consisting of a heat pump, home control system, smart tariff and other features. Jackson said the company had almost doubled its renewable generation portfolio to $7.6 billion over two years.

Australian energy giant Origin Energy, Japanese natural gas distribution company Tokyo Gas, Canadian pension fund Canada Pension Plan Investment Board and British investment firm Generation Investment Management, all invested in this latest round.

The UK Government announced in July 2020 that it would offer £5,000 grants to English and Welsh homeowners to subsidize the procurement and installation of heat pumps. In November this year, the UK Government’s Department for Energy Security and Net Zero announced applications for the heat pump grant program had surged following a £2,500 grant top-up.

Almost 30,000 heat pump grants have been awarded since the program began in May 2022, according to UK Government data, with 2,652 vouchers awarded recently following the recent top-up.

However, according to consultancy firm WSP, there are multiple laws the UK Government should revise if it wants to install 600,000 heat pumps by 2028.

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