Dr Lindsay Sugden, Head of Heat, Delta-EE.
‘Heat as a Service’
At the start of the 2020s we are on the verge of one of the biggest paradigm shifts in the new energy market – the way to make money in new energy in the 2020s will be through selling services, not just through shifting products. Nowhere will this be more impactful than in the European heating market, writes Dr Lindsay Sugden, Head of Heat, Delta-EE.
The concept of heat and energy services is well-established in Europe in the commercial and industrial sectors. However, in the residential sector, it is only very recently that the concept has taken root, with an explosion in the number of “heat as a service” type offerings in the past two to three years. A potent mix of decarbonisation, digitalisation and disruptive new entrants to the heating market give me reason to believe we have only seen the tip of the iceberg when it comes to residential “heat as a service” offerings.
Service propositions in the residential heating market range from basic “asset leasing” (enduser pays a monthly rental fee for a new heating system instead of a one-off upfront payment); to “heat (output) as a service” offerings (end-user pays a monthly fee which includes payment for the heating system, kWhs of heat, and maintenance); to perhaps the most risky proposition “comfort as a service” (where the customer pays for “21ºC” in their home). So why is this market expanding right now? I see three key drivers.
See full article at Heat as a Service