3 min read

#31 - 850,000 heat pump engineers wanted

#31 - 850,000 heat pump engineers wanted

Heat pumps are amazing! Why don't we all already have one?

Gas and oil-fired boilers are still dominating the market, unfortunately for the planet. Wood-burning boilers are an interesting greener option, but they emit particular matter and pollutants disqualifying them in cities, and 80% of us are urban.

Heat pumps are a fantastic solution for reducing greenhouse gas emissions and cutting down on energy costs at the same time — they are 30% cheaper over their lifetime than gas boilers.

So why is the adoption so slow?

  1. High upfront cost
  2. Technical complexity
  3. Installers shortage

Let's dive into that third one. It always amazes me when there is a huge demand for something but no one to do the job!

Heat pumps are 3x to 5x more energy-efficient than gas boilers, but only 18% of engineers know how to install them.

Heat pump technology is a sleeping beauty. When everything falls into place, the market should grow at a 10% CAGR until 2030 globally. In Europe, as many as 1 out of every 3 households will have a heat pump.

Good technology alone is not enough; you need adoption to grow. The missing piece here is dramatic friction reduction. Homeowners and installers simply can't find enough heat pump engineers to meet the demand.

Globally, the number of heat pump jobs will increase from 450,000 today to 1.3 million skilled workers in 2030. Installation is the most labour-intensive part of the heat pump value chain (~50%).

Governments fail to train the workforce. Where there is market inefficiency, there is room for creativity. Only innovation can get us there.

nuuEnergy, one-stop shop for heat pumps in Germany

The German heat pump market will reach nearly 30 billion euros by 2030. Germany needs 60,000 more heat pump installers!

nuuEnergy, a Munich-based start-up founded in 2023, addresses the overall customer experience issue, from lack of knowledge to unclear public subsidies.

More specifically, the team is working hard to tackle the shortage of heat pump engineers by building a unique team of franchise partners. Here is how they do it:

  • Partner with motivated installers who want to have skin in the game, and offer them up to 49% ownership in their franchised local business.
  • Provide upfront funding up to €200k.
  • Guarantee an annual base salary of up to €100k.
  • Take care of customer acquisition, procurement and back office.
  • Offer an OS designed for installers to facilitate the planning and execution of jobs.

Diverse, complementary, experienced and execution-driven, nuuEnergy's team of 4 co-founders is gold!

They beta-tested like crazy through 50+ in-depth interviews with young and ambitious installers, and have designed the perfect win-win partnership framework.

They were raising €1.5m at c. €5m pre-money last month. I wanted to invest and even wired the money to the SPV. But the deal got oversubscribed and angel investors were kicked out. Bummer! Anyway, all the best to the team!

Thank you for reading!
Colin Rebel
LinkedIn / Twitter