... and how does it benefit end consumers and businesses? Let's explore now!
Today, as we strive for low-carbon heating solutions, we face three key challenges: comfort, control, and convenience. People want warmth without compromise, the ability to tailor their heating experience to their preferences, and seamless installation processes. Addressing these challenges is where "Heat as a Service" comes into play.
So, what exactly is Heat as a Service?
It's an approach where consumers pay for the comfort and experience of warmth in their homes rather than traditional kilowatt-hours of energy. By understanding individual needs, service providers can recommend the best low-carbon heating systems and assist with hassle-free installations.
Once, Energy Systems Catapult’s field trial of Heat as a Service offered consumers the opportunity to purchase "Warm Hours" instead of energy units. This innovative model allowed users to select designated rooms, set desired temperatures, and choose from three flexible Heat Plans: Fixed, FlexiTime, and Unlimited.
The trial yielded invaluable insights into consumer heating preferences and spending habits, paving the way for a more consumer-centric approach to heating.
But how does Heat as a Service benefit end consumers and businesses alike?
Improved Consumer Experiences: Trialists found Warm Hours easier to understand and appreciated the predictability of fixed pricing. This increased control over comfort levels translated into higher satisfaction.
Increased Willingness to Pay and Loyalty: Knowing they could achieve desired comfort levels at a predictable price, consumers were willing to pay more for Heat as a Service. This resulted in higher loyalty and advocacy for service providers.
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Higher Quality Low Carbon Systems: Manufacturers can leverage consumer data to design more appealing low-carbon products tailored to consumer preferences and priorities.
Homes Ready for Low-Carbon Heating: Heat as a Service facilitates tailored retrofits, addressing common issues like dampness and drafts while preparing homes for low-carbon heating solutions.
Accelerated Uptake of Low-Carbon Heating: Trialists showed a higher openness to low-carbon alternatives, especially when guaranteed comfort at an acceptable price.
Reduced Energy Demand and Increased Flexibility: Service providers are incentivized to optimise energy usage, leading to reduced demand and increased flexibility in energy consumption.
Related:
One of the benefits is heat-as-a-service is accelerated uptake of low-carbon heating. Trialists showed a higher openness to low-carbon alternatives, especially when guaranteed comfort at an acceptable price. Read other benefits in this post!