Heat-as-a-Ser­vice – The fu­ture-pro­of busi­ness mo­del for in­ves­tors in the heat tran­si­ti­on

The transformation of the energy sector affects not only electricity and mobility, but also the heating of buildings. PAUL is promoting a new, innovative model for success in the real estate industry: Heat-as-a-Service. It combines modern, sustainable heating with a user-friendly, predictable financing model – and could fundamentally change the way heat is provided and used.

What is Heat-as-a-Service?

Heat-as-a-Service is a contracting and service model for heating, whereby property owners no longer have to invest in, operate, and maintain their own heating systems. Instead, a specialized provider such as PAUL takes over the entire provision of heating as a service.

Owners benefit from predictable cost structures without tying up capital. PAUL plans, finances, installs, and operates the entire heating technology and also takes care of maintenance and optimization.

The core idea: The owner or investor receives heat without investment risks and without operational complexity. The energy efficiency class can be increased by up to three classes – up to A – without costly building renovation. A real lever for ESG-compliant investments.

Just one example of many: a multi-family house built in 1962 with 54 residential units has been supplied with our smart sector coupling PAUL Net Zero since spring. The results: energy efficiency class A, 97% less CO₂ emissions, 77% less primary energy.

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This is how PAUL does it: The elements of Heat-as-a-Service

PAUL's professional Heat-as-a-Service offering includes the following components:

Planning & inventory analysis

• PAUL's experts assess the technical condition of the property, analyze the heat demand, the heating infrastructure, and the possibilities for integrating heat pumps and photovoltaics.

Investment & installation

• The new heating system – based on a heat pump system, smart sensors and, if required, photovoltaics, buffer storage and other boiler room components – is fully financed and installed by PAUL. The owner incurs no investment costs. Our plan: 5,000 heat pumps are to be installed in this way by 2025.

Operation & maintenance

• PAUL takes over the entire operation, including 24/7 monitoring, maintenance, and troubleshooting. Thanks to AI-controlled heating control, systems can be continuously optimized, e.g., through predictive control and automatic hydraulic balancing. To this end, PAUL has optimized its production in Ladenburg so that components for 1,000 residential units can now be manufactured there each week.

Billing as a service

• The heat energy consumed is billed on the basis of a long-term calculable tariff.

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Major advantages for real estate investors

Heat-as-a-Service from PAUL offers advantages that are particularly valuable for real estate investors:

Secure returns and increased rental yields:

• The CO₂-neutral heat supply increases property values and makes them more attractive to ESG-oriented tenants and investors.

No investment costs and no burden on the balance sheet:

• The heating is financed and operated by PAUL. Owners avoid high costs for replacing oil or gas heating systems.

No CO₂ tax costs as a landlord:

• PAUL uses Heat-as-a-Service very successfully in existing buildings that cannot be renovated immediately for budgetary reasons. In most cases, this brings the energy efficiency class up to A and reduces CO₂ emissions by up to 99%.

Predictable operating costs:

• Indexed, transparent pricing structures allow tenants and owners to benefit from stable costs, even as fossil fuels become more expensive and volatile.

Reduced administrative burden:

• Operation, maintenance, servicing, and monitoring are entirely handled by PAUL.

ESG and regulatory compliance:

• Real estate companies meet stricter requirements from GEG, EU taxonomy, and municipal heat planning.

PAUL carefully implements Heat-as-a-Service

PAUL has already gained a wealth of experience in implementing Heat-as-a-Service:

Complexity of implementation in existing buildings:

• Existing properties often require individual solutions and very careful planning in order to cover heating loads. Our experts plan the exact amount of heating components required to meet the heat demand determined on site.

Long-term partnership with contractual security:

• Heat-as-a-Service contracts with PAUL run for 10 years. This gives owners advantages in terms of price and supply security.

Tenant communication:

• PAUL works professionally with property managers during the construction and conversion phases to ensure acceptance among tenants.

Integration into municipal heat planning:

• PAUL coordinates projects with local energy suppliers and municipal heat planners at an early stage – for regulatory security and strategic connectivity, especially with regard to regional district heating expansion.

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Practical examples and market trends

In Germany, more and more companies are turning to Heat-as-a-Service, and PAUL is a pioneer in this field with our PAUL Net Zero product. The model combines high-performance heat pumps, photovoltaics, smart hardware, and AI-controlled heating control, enabling CO₂-neutral heat supply, especially in older apartment buildings, without any investment on the part of the owners. PAUL plans to supply 20,000 residential units with PAUL Net Zero by 2025.

Thanks to prefabricated, modular heat pump system units, installation can be carried out particularly quickly and with minimal intervention. PAUL also offers its “Heizraum-in-a-Box” concept, which combines a buffer tank, expansion vessel, and dirt separator in a compact space and can be installed modularly.

Market analysts expect Heat-as-a-Service to grow rapidly in the coming years – and PAUL is at the forefront of this development. The reasons for this are rising CO₂ prices, the phasing out of fossil fuel heating technologies, the EU taxonomy, and the increasing shortage of skilled personnel for the operation and maintenance of conventional heating systems. The enormous economic advantages are obvious: within a few months, the energy efficiency class can be raised to A – a decisive advantage for ESG-compliant portfolios.

Heat-as-a-Service is a scalable model for the rapid decarbonization of real estate – economical, regulatory compliant, and ESG-compliant.

Heat-as-a-Service offers a concrete solution to the most pressing challenges in real estate investment: Rental profitability is currently threatened by CO₂ pricing, real estate values and the resale value of portfolios are falling, and (re)financing is becoming increasingly challenging.

Heat-as-a-Service has the potential to be a real game changer for the heating transition in Germany – especially where existing buildings need to be decarbonized quickly, efficiently, and in a socially responsible manner.

Let's talk about PAUL Net Zero – get in touch now