E.L.L.A
Climate & Energy

Heat pumps quietly became a software business

Heat pumps quietly became a software business

The heat pump is increasingly a commodity box. The durable value is the software layer on top: smart controls, demand response, predictive maintenance, and aggregation into grid services that get paid.

A fleet of connected units is a flexible energy asset — and that's a recurring-revenue business, not a one-time sale.

Signal: in electrified hardware, follow the controls layer. That's where recurring margin lives.