The top 5 things needed for your business to capture ...

Electrifying heat is not just good for the planet it can also be good for your business.

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When I first got involved in low carbon heating more than 3 years ago, I didn&#;t think I would be getting excited about what type of heating people had installed in their homes.

The UK Government has predicted a growth of 600,000 heat pump installs per year by , with a target for all new heating systems installed to be low carbon by [1]. I believe now is the best time to get involved as the heat pump market is about to take off.

But why is heating and heat pumps important? The decarbonisation of heating is a key focus in the transition to Net Zero, as it makes up 37% of the UK&#;s GHG Emissions[2]. Heat pumps are a low carbon form of heating as they take heat from their surroundings and use electricity to generate heat more efficiently than other technologies such as gas, oil, or LPG boilers. It&#;s also not just about heating, many models of heat pumps can be used for cooling too.

However, there are still a few step changes required for heat pumps to follow a similar trajectory to electric vehicles: the cost and time to install a heat pump needs to become comparable with gas boilers, heat pumps need to become better integrated into a Net Zero home proposition and stronger regulation is required for the market to scale quicker.

Here are five things I&#;ll be advising my clients to do as they think about getting into the heat pump market:

#1: Understand where the value is in the heat value chain

Here&#;s something that I&#;m often asked: what part of the heat pump value chain should I invest in?

There are five parts of the value chain: the manufacture of the heat pump, lead generation, installation, maintenance, and tariff.

Unfortunately, the value chain is currently fragmented with very few trained heat-pump engineers and a supply chain that is not mature. Therefore, there is a huge opportunity to create a joined-up proposition which will help to provide the value to scale.

However, there are a couple of considerations before choosing where to invest. Timing is one consideration:  if your go-to-market speed is vital, you may want to invest in only the areas where you can build a proposition quickly. For example, if you have a large customer base, you could use lead generation to generate immediate revenue.

Skills is a second consideration: what competencies and skills your organisation already has may drive where you invest. But if you want to build your own unique proposition, it is likely that there will be gaps in knowledge or expertise which will need to be filled first.

In my opinion, all the value chain is up for grabs and my recommendation would be to develop a proposition across all parts of it which will enable you to scale.

#2 Understand the data behind your households

A key question when starting any new business: which customers should I target?

Data is key to answering this question. There is a lack of accurate and up to date data on households, existing heating sources and insulation. Being data driven will help enable you to target the right customers, at the right time, in the right locations with the right technology.  For instance, customers with oil and LPG boilers could be more likely to switch to heat pumps as there is greater economic benefit for them than gas boiler customers.

Every house is different and retrofitting houses requires many activities to take place, such as, upgrading the houses&#; fuse, service cables, insulation, and radiators. The more you learn about what is required to retrofit, the better you can design your customer proposition.

Overall, ensuring your business strategy is data-driven will help to drive operational efficiencies across your value-chain and drive continuous improvement.

#3 The smarter the heat pump the better

Intelligent heating systems will be crucial to ensure your heat pump business is future proofed.

An easy way of connecting your heat pump to the internet is via intelligent thermostats. However, only 23 per cent of all heat pumps are connected to the internet, and hardly any of them can be controlled remotely.[3] Smart, flexible and connected heat pumps that are coupled with thermal energy storage can be used for demand side flexibility and can help to solve balancing congestion problems in the grid. Not only this, but smart heat pumps can help to reduce the cost of electricity for the consumer by taking advantage of time-of-use tariffs.

#4 Integrate with other low carbon technologies

Don&#;t just think about heat pumps but about designing the home of the future.

I&#;d encourage you to think more holistically about the home as EV&#;s, heat pumps, solar and storage complement each other to tackle net zero.

A smart joined up proposition that connects all low carbon technologies in the home will enable you to capture higher market share.

#5 Deliver a human-centred approach that tackles heat pump barriers

Only 27% of people in the UK are aware of what air source heat pumps are.[4] One of the biggest barriers we see to heat pump uptake is a lack of customer awareness. Many customers don&#;t know what a heat pump is and if they do, they have heard many misconceptions that they don&#;t work. Education is key to increasing awareness.

However, there are also many behavioural barriers which can be more difficult to solve. For instance: many people don&#;t want the inconvenience of retrofitting their home. They don&#;t want to tidy up the loft to put loft insulation in, they don&#;t want engineers round multiple times to do a site survey and then have the noise and disruption of an engineer replacing radiators and fitting a heat pump.

Understanding your customer&#;s drivers for heating is important to create a customer journey that is designed with them first to reduce anxieties and behavioural barriers.

So, it&#;s time for more players to join the heat pump market to make heat pumps accessible to the masses. With the right strategy, switching to low carbon heating will become seamless.

The company is the world’s best Commercial Heat Pump Manufacturer supplier. We are your one-stop shop for all needs. Our staff are highly-specialized and will help you find the product you need.

Contact me to talk more about the way forward and stay tuned for the next blog.

References

[4] BEIS Public Attitudes Tracker - Wave 28

Commercial heat pump systems are an alternative to traditional HVAC systems. Unlike traditional systems that use gas boilers to heat your commercial property, these take natural thermal energy from your environment for heating purposes.

Not only are they affordable and reliable, but they also require lower maintenance and are considered a much more environmentally friendly option. They can further be used as either a cooling or heating solution as needed.

 

Benefits of Installing A Commercial Heat Pump

There are several benefits to choosing a commercial heat pump over a traditional HVAC system. Some of the significant benefits include:

1. Improved Energy Efficiency

Commercial heat pumps are extremely energy efficient; they deliver more while eliminating energy waste. Modern heat pumps demand roughly 50% less electricity than heating through furnaces and deliver nearly 3x more heat energy than the electrical energy they consume.[1] They deliver unparalleled performance while improving the overall energy efficiency of your business for reduced costs in the long run.

2. Reduced Environmental Impact

Commercial heat pump systems aren&#;t simply reducing your energy consumption; they are also reducing your carbon footprint. Unlike traditional boilers and furnaces, heat pumps do not need to burn fossil fuels to deliver energy, do not emit CO2 directly, and will take your business closer to a zero-carbon system.

An analysis of the adoption of heat pumps in the city of Mississauga revealed that they could reduce the city&#;s greenhouse gas emissions by almost 30%.

3. Improved Indoor Comfort

A heat pump system doesn&#;t just aid in heating and cooling your home but also helps regulate the humidity level indoors. Think of the heat pump as an air conditioner that removes moisture from the air through condensation and drains away the resulting water. Similarly, the warm air it circulates during the winter will naturally dry out the air indoors. This way, it naturally controls indoor humidity as an effect of its heating/cooling process.

4. Versatility and Durability

A commercial heat pump allows for cooling, heating, and humidity control of your indoor environment, making it a highly versatile solution. Apart from being versatile, they are also incredibly durable.  With proper maintenance, a typical heat pump system can easily last you around 20-30 years.

5. Cost Savings and ROI

Heat pump systems require little to no maintenance and consume lower amounts of electrical energy, reducing your expenses overall, especially in the long run. Think of the heat pump system as an investment that gives you incredibly high returns, reduced costs, and an overall optimized ROI.

Where to Source Your Commercial Heat Pump?

There are several manufacturers of commercial heat pumps, which may make it challenging to select the right one for your business. One of the most popular choices when it comes to commercial heat pumps is Shenling, a reliable manufacturer of thermal pumps and HVAC equipment.

We offer a diverse range of heat pump systems you can choose from, including domestic heat pumps, commercial heat pump water heaters, and commercial heat pump systems. You can view our complete catalog of heat pumps here.

 

Unlock the Benefits of Owning A Commercial Heat Pump

Commercial heat pump systems offer numerous benefits that make them the optimal choice for businesses wanting to reduce their energy consumption, reduce their carbon footprint, and improve the environment&#;s commercial space at a much-reduced cost. This makes them the superior choice against traditional heating systems.

 

 

About Shenling

Shenling is known for providing a diverse range of eco-thermal solutions for space heating, energy management, and energy storage. We rely on renewable energy resources for all our solutions, making them a sustainability-driven corporation. Our cutting-edge technology dives into innovation and sets us at the forefront of energy efficiency when it comes to space heating.

For more information on the services we offer, check out our website.

 

References

[1] Heat Pump Systems. Available at: https://www.energy.gov/energysaver/heat-pump-systems (Accessed 29th May )

If you want to learn more, please visit our website Commercial Air Source Heat Pump.