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The proposition is heating up: the heat market’s transition

The transition from ‘old’ to ‘new’ heat is disrupting the market in several ways, creating new business models, customer propositions and new technology ecosystems, as well as opening up opportunities for new market players and sales channels. In part one of this two-part blog series, we discussed  how new technology ecosystems and connectivity are shaping the market. 

For this second and final part of the heat blog series we consider customer propositions and new market entrants and how they will impact the heating market. 

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The proposition is heating up: How Europe’s heat market could change

The transition from ‘old’ to ‘new’ heat is disrupting the market in several ways, creating new business models, customer propositions and technology ecosystems, as well as opening up opportunities for new market players and sales channels. This two-part blog series will consider how the heat market could evolve and what could be seen in the next few years.

This first part considers heating system functionality and connectivity, value stream diversification and hydrogen for heat. The second will look at customer propositions.

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How Brussels is pointing the direction for the European energy transition

All personal opinions regarding Brexit aside, there’s no denying that the European Commission and European Union has a huge influence over the energy sector. Recent episode of Talking New Energy, the Delta-EE podcast, focuses on what the latest policy coming out of the EU means for the energy transition. 

As Frauke Thies, Executive Director at SmartEn, explains, organisations such as SmartEn help their members understand the legislation coming out of the European Union and how it affects them. It is not always easy to help countries understand the influence of the EU, but its influence is paramount. Take the Energy Performance of Buildings Directive, for example, which has set the target for member states to achieve nearly zero energy buildings in new builds. In the future this will push towards achieving a renovation of building stock as well. 

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The top takeaways from the European Heat Pump Summit

The European Heat Pump Summit (powered by Chillventa) is always eagerly anticipated by the heat team at Delta-EE. This year was no exception, with a packed agenda discussing the current state of the art in the design of all types of heat pump, and applications spanning from domestic to industrial, from low temperature to high temperature, and using a wide range of refrigerants. Contributions came from further afield than just the EU with India, Japan and China being notable contributors. 

Given the wide range of topics up for discussion, what were the key takeaways? My top three are given below:

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How the transition to new heat is disrupting the heating market and creating opportunities

We are at a pivotal time for the heating market in Europe, as the transition from ‘old’ to ‘new’ heat gains traction.

The decarbonisation agenda is finally placing heat at its centre in many markets. The heating market is seeing more disruption than ever before, as new market players compete with the incumbents, new business models and propositions emerge, traditional routes to market are turned on their heads, and technology ecosystems evolve. 

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Selling heating systems online: the first step in the evolution from products to services

Buying a new heating appliance today typically involves finding and dealing with a local installer, as well as taking time off work to wait at home for a site survey and installation, all for a price which the customer generally does not know is competitive or not. Why not just buy online? With the internet giving customers more power and more information, is this trend finally coming to the very traditional heating sector?

New entrants like Thermondo are speeding up this slow and arduous process by doing the site survey remotely, either by asking the customer a few simple questions online or over the phone, having them upload photos of their heating system, or doing a video call. The first benefit for customers here is that they don’t have to wait very long at all to get a quotation, and they also don’t need to be at home waiting for an installer to come around and do it.

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