Heat as a Service proposition: One of the keys to unlocking the residential retrofit market for heat pumps

Policymakers in many countries and regions have set high ambitions for accelerating the deployment of heat pumps to reach climate ambitions, especially in Europe, to reduce the dependence on fossil gas. However, in some countries the upfront cost of a heat pump, and sometimes a low awareness of the technology, is still a barrier for many consumers. Alternative business models could be a solution to overcome these barriers since they could both reduce the upfront cost for the end consumer and reduce their risk. In addition, alternative business models could unleash the potential of “economy of scale” to reduce production costs and could also enable cluster control of heat pumps to stabilize the electric grid.