Will customers buy Heat as a Service?

will customers buy heat as a service?

When it comes to heating, people care more about their experience than how it’s delivered. They want to control how much they spend on their comfort, but don’t know how (see our original controls study).

However, if they could buy their Heating as a Service, then they can choose how much to spend on their plan.

So we designed a ‘starter for ten’ Heat as a Service where you could buy ‘Warm Hours’ instead of kilowatt hours. A ‘Warm Hour’ was an hour when their home was as warm as they wanted.

Then we offered people the chance to buy one of three plans in our Living Lab:

Fixed Time

This included the Warm Hours in their schedule. It was the cheapest option because consumers could not change their schedule. They could pay a fixed price if they wanted to use an Extra Warm Hour at any other time.

Flexi Time

This was our mid-priced plan. It contained a bundle of spare Warm Hours and consumers were free to use them when they liked.

Unlimited

This was our most expensive option. It offered consumers a fixed price for an unlimited number of Warm Hours.

We used data to design and price bespoke plans for each home.

In the end, around half chose to buy their Heat as a Service. The plans they picked and prices they paid taught us what they valued. Those who decided not to buy plans told us lots of ways to improve them.

Selling heating as a service creates opportunities for businesses across the supply chain. Get in touch to find out how you can use our Living Lab to move your business forward.