Heatio Partnership to Provide UK’s First Low Carbon Technology Subscription
In the bid to make low-carbon technologies affordable and accessible to everyone, Heatio, a Liverpool-based clean tech specialist, has worked with E.ON and Energy Systems Catapult to provide its Energy as a Service solution (EaaS), the UK’s first home subscription product that unlocks energy savings through the combination of low carbon technologies.
The collaboration aims to facilitate broader adoption of low-carbon, energy-efficient solutions and address financial barriers hindering access to green energy.
This innovative approach will spread the cost of low-carbon energy solutions over a long-term period, similar to mobile phone and car finance products, leading to substantial reductions in energy expenses for homes without incurring any capital costs for new technologies.
Energy as a Service
The consortium will introduce the Energy as a Service solution in Q2 2024, with 350 households in the North West of England being given the opportunity to be the first to benefit from this new service agreement.
The initiative will eliminate upfront costs for consumers considering heat pumps, solar PV, or battery storage via a 20-year subscription service, with monthly payments expected to be around £150 per month. Additionally, the solution will also integrate a bespoke E.ON Next energy tariff, further reducing home energy costs by up to £70 per month.
As a core component of the service, the Heatio Home Energy Management Solution will implement a data-driven approach to specify energy-efficient technologies tailored to individual households based on their actual energy usage and property type.
Supported by the Department for Energy Security & Net Zero through its Net Zero Innovation Portfolio (NZIP), as part of the department’s Green Home Finance Accelerator (GHFA). The GHFA was established to fund innovative green finance products, promoting the uptake of home energy efficiency and low-carbon heating measures.
Recent research conducted during the 2023 GHFA Discovery Phase by the consortium revealed that the upfront capital costs of low-carbon energy solutions are hurdles for consumers. Many are unable to manage the expenses associated with installing, operating, and maintaining technologies like heat pumps and solar PV.
Decarbonising Homes for a Sustainable Future
With homes responsible for 40% of the UK's total emissions, decarbonising homes plays a pivotal role in the UK’s carbon reduction efforts. The pilot aims to facilitate the adoption of alternative energy sources by making the market accessible to those with lower incomes and no available capital.
Thomas Farquhar, Co-Founder of Heatio, emphasised the significance of equipping homes with low-carbon heating systems for 'net-zero readiness'. “This initiative isn't just a benefit to the environment, it's a huge benefit for households and consumers. Embracing clean energy unlocks lower energy bills, promotes cleaner energy usage, and ensures homes are both warm and environmentally friendly. Energy as a Service is the first home subscription that actually unlocks energy savings, the Netflix of low carbon technologies.
Our aim, working with E.ON and Energy Systems Catapult, to advance things forward in helping the public get access to greener technology is necessary if we are to truly transition away from fossil fuels. This is a fantastic opportunity to take a data-driven approach with Heatio, which will offer accurate specifications to deliver consumer confidence, incentivising homeowners to improve the energy efficiency of their homes and deliver energy security.”
Chris Norbury, E.ON UK Chief Executive, said: “We’ve long argued the energy market in its current form is not designed to inspire homeowners to take their own steps towards improving their homes and helping to wean the country off our dependence on fossil fuels. We hope removing the finance barrier encourages more people to consider greener options when updating their homes by providing an affordable funding system that makes the sustainable choice the easier choice.”
Heatio
Heatio is spearheading the drive to true energy independence for UK homes with a data-driven approach to home energy usage. They will be the consumer-facing provider for the deployment of EaaS. To support & validate the deployment of the initiative, Heatio will deliver its Home Energy Management Solution. This provides accurate system specification, predicted performance, in-home optimisation and impact validation.
E.ON
E.ON is leading the energy transition; providing smart, sustainable and personalised solutions for customers at home, in business and across entire towns and cities. They offer a wide range of efficient and smart technologies to help customers reduce their impact on the planet by using less energy and even generating and storing it themselves.
Energy Systems Catapult
Energy Systems Catapult provides technical, commercial and policy expertise to drive innovation across the whole energy system. Their independent and technology-agnostic approach has built a trusted track record in delivering thought leadership, collaborative R&D and commercial commissions. Drawing on whole systems expertise coupled with a range of products, services, models, tools, labs – from world class Net Zero modelling and cutting-edge systems engineering – through to digital & data science and real-world innovation trials that drive start-ups to success.
The Department for Energy Security and Net Zero
The Department for Energy Security and Net Zero provides dedicated leadership focused on delivering security of energy supply, ensuring properly functioning markets, greater energy efficiency and seizing the opportunities of net zero to lead the world in new green industries.
The funding from the Green Home Finance Accelerator comes from the department’s £1 billion Net Zero Innovation Portfolio which provides funding for low-carbon technologies and systems and aims to decrease the costs of decarbonisation helping enable the UK to end its contribution to climate change.
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