Contracting

Thermal Contracting – an interesting model for real estate developments

Selling thermal energy to the tenants for heating, cooling and domestic hot water is a growing business especially for gated communities or apartment buildings.

Selling heating and cooling to tenants in an apartment building or estate is a modern model for efficient construction. As usual, the developer builds all heating and cooling facilities in the residential complex but provides a contractor with a technical room in the building with all connections. The contractor invests in the heating or cooling device and enters into a long-term contract with the property management company to supply heat and cooling to the tenants. The developer saves the costs for the central cooling/heating machine and for maintenance and servicing, the contractor has a fixed customer for the duration of the supply contract (usually the depreciation period of the system), the tennants only pay for what they actually use.