Heatio, & EON have successfully completed the Phase 1 of the Government’s Heat Pump Ready programme alongside consortium partner Newcastle City Council. Focused on the North East region the completion of the programme has resulted in the publication ‘Newcastle Heat Pump Ready Feasibility Report’.
Running from July 2022 to December 2022, the aim of the Newcastle Heat Pump Ready feasibility study was to demonstrate the coordination of technically and commercially feasible solutions for high-density heat pump deployment within Newcastle residential homes.
As part of the project consortium, Heatio was selected to analyse the feasibility of Heat as a Service (HaaS) and if this could provide homeowners the support needed to overcome the barriers associated to the cost of Air Source Heat Pump (ASHP) installations in their homes.
Heatio’s Heat as a Service presents a new model for how businesses sell heating. HaaS shifts the homeowner away from just buying fuel: instead, the customer pays for a full “Heat as a Service” package inclusive of a new Air Source Heat Pump system including all service and maintenance, designed around both warmth and comfort levels. Heatio uses customer and property characteristics to provide an optimised, tailor-made heating solution which will be maintained and operated through the Heatio Home Energy Management System (HEMS) to deliver clean affordable heat for the customer.
Focused on reducing costs and improving the customer experience at every stage of the heat pump journey, Heatio collaborated with its project partners to identify a property’s suitability whilst understanding consumer engagement, to determine if HaaS adoption is preferable.
The recently published report summarises the findings from the project, revealing that 80% of the 31,000 properties surveyed and reviewed within the urban area are ready for heat pump installations. The HaaS analysis further found that the consumers assessed would be willing to engage with the Heat as a Service offering, dependent on the provision of a rental model and affordability, with the price point of the solution being an important consideration.
The study proved that Newcastle City has the potential for large-scale deployment of ASHPs and delivered invaluable insights that support a coordinated dense deployment via a HaaS programme. However, results further suggested that there is a need to fully explore a variety of finance products/propositions. This highlighted that homeowners require a portfolio of financing mechanisms that ensure choice and a clear return on investment, allowing them to make informed decisions between propositions.
Thomas Farquar, Heatio Commercial Director, commented: ‘We are delighted to have been a part of this project which has enabled us to show how the deployment of heat pumps in local areas at scale is very much possible. This study has proven to be invaluable in gaining key insights into the consumer journey and gathering significant learnings on the challenges we face in progressing Heat as a Service as a new, innovative solution.
It is now vital that we continue to develop innovative clean technology and financing solutions that will help homeowners overcome the barriers around Heat Pump installations so that they can switch away from Gas & Oil to clean, renewable energy.’
Heatio is invested in the future of energy use. Across the UK, we are involved in a number of projects leading the way toward Net Zero in 2050. From government trials to the latest technology pilots and innovation programmes. Find out more about some of the innovative projects we are working on.