Presented at Flexcon 2025, Brussels
The path to a flexible, user-focused energy grid starts with programs that real people can understand and use, every day. We believe heat pump flexibility shouldn’t be reserved for energy experts or digital natives. It should be available for every home.
That’s why we were proud to share Finland’s first heat pump tariff with our long-time partner Väre at Flexcon 2025, showing exactly how energy companies can deliver customer value, grid flexibility, and tangible savings in a simple way in a simple way.
Why Residential Flexibility Needs Simplicity A core lesson from scaling residential virtual power plants (VPPs) is this: real flexibility starts with real user participation. It’s not about supporting every possible market (aFRR, FCR-D, intraday), asset, or technical signal but it’s about enrolling customers, keeping programs clear, and making the value immediate.
With over 50 million heat pumps expected in Europe by 2030 (26 million today), their flexibility potential already dwarfs electric vehicles. Yet, less than half of European households with heat pumps are enrolled in dynamic tariffs or flexibility programs.
Why? Because the process is often confusing and the benefit is unclear.
The Kapacity.io approach: User-centric and seamless service We set out to change that by building a platform that:
Integrates directly into energy company or OEM mobile apps (no separate hardware) Supports both dynamic and Time-of-Use (ToU) tariffs Makes enrollment a breeze: Usually in less than aa minute Automatically adaptiveive for each heat pump brand and model Provides instant value to customers and utilities, right from day one Without easy enrollment, there’s zero flexibility. That’s why smart user journeys like bundling incentives, clear value, and one-click signup, are at the heart of everything we do.
Case study: Väre and Finland’s first heat pump tariff Finnish market highlights
Nearly 100% renewable electricity: wind, hydro, and nuclear 1.5 million heat pumps (25% of all heating demand) 30% households already on dynamic tariffs 900+ hours of negative or zero wholesale electricity prices in 2024
The challenge
Many Heat pump owners are on dynamic tariffs but even more are not. Väre, a leading Finnish energy company, saw the gap: people value predictability, but are open to flexibility if the program is simple and the savings are real.
The solution: Simple ToU with smart control
Väre , together with Kapacity.io, launched a dedicated ToU electricity contract specifically for heat pump owners. The offer includes:
Fixed low and high price periods, no complicated day-to-day changes Savings automated with in-contract smart control Integration handled directly through the customer’s existing mobile app No additional hardware, no new passwords The result
92% of Väre customers smart ToU have been able to save in their energy costs. On average, Väre customers were saving 0.7c/kWh for every kWh by simply enrolling in their heat pump and letting the smart control do the rest. Early adopters report not just lower bills, but increased comfort and peace of mind.
What every energy company can learn Start with customer enrollment: Make participation easy and instantly valuable. If users can’t join in two minutes or less, rethink the journey. Bundle incentives clearly: Whether it’s a dynamic or ToU tariff, pair it with automation so customers don’t have to become energy market experts. Integrate, don’t duplicate: Offer programs within your existing app. Focus on real impact: People want to see actual bill savings, not just technical jargon or theoretical flexibility. The future: Scalable, flexible, customer-friendly
With the coming move to more granular (15-minute) settlement in European markets, user-centric flexibility will only matter more. Kapacity.io, as part of EnergyHub, is bringing proven North American expertise to Europe starting with Finland and expanding quickly.
Let’s make flexibility work, not just for the grid, but for the people using it.
Presented at Flexcon 2025, Brussels by the Kapacity.io team
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