Two Models, One Decision.
Which Contracting Model Is Right for Your Property.
Contracting may sound like a concept designed for large housing companies. Yet it has long since found its place where it is needed most: in existing buildings. In apartment buildings that need a new heating system—but whose owners do not have the time or capital to manage the project themselves. We offer two models for this. They work in fundamentally different ways. And that is precisely the point.
Operations Contracting — We Operate the System, You Retain Ownership
Your heating system is already in place. It works, but day-to-day operation requires time, attention and technical expertise that you would rather use elsewhere. This is precisely where operations contracting comes in.
The contractor assumes full responsibility for the technical and organizational operation of the existing system. This includes control and monitoring, fault management, emergency and on-call service, and ongoing system optimization—including cost accounting. The system remains your property. We do not own it; we operate it.
You pay a monthly flat fee or a project-specific fee. The cash flow remains with you—we provide operational reliability.
This model is right for you if: You own a functioning system but want to permanently hand over the operational workload.
Services included:
- Control & Monitoring – continuous system monitoring, digital remote control and efficiency optimization during operation
- Fault Management – response to outages and coordinated troubleshooting
- Emergency & On-Call Service – availability and deployment coordination outside regular operating hours
- System Optimization – ongoing improvement of operating efficiency based on system data and hydraulic balancing
- Cost Accounting – transparent recording and preparation of operating costs for owners and tenants
- General Operations Management – documentation, maintenance coordination and maintenance of the system log
- Eligibility for Passing Costs on as Ancillary Costs
What requirements need to be met?
- The system is installed and operational
This model requires an operational heating system. If a comprehensive replacement is necessary, classic heat contracting is the appropriate option. - The owner wants to retain control
This model is right for anyone who wants to retain ownership of the system and make their own investment decisions. There is no long-term commitment of capital to the contractor. - The operational workload should be eliminated
Operations, maintenance coordination and fault management are transferred entirely to the contractor—without the owner having to maintain their own technical staff.
Classic Heat Contracting — We Invest, Plan, Build and Supply
Classic heat contracting is the full-service package. Here, the contracting company handles not only operations, but everything else as well: planning, financing, construction, installation, commissioning, maintenance, emergency service, control and heat billing.
The existing heating system is completely replaced—usually with modern heat pump technology. During the entire contract term, the new system belongs to the contractor, not the building owner. The contracting company finances the investment itself—through bank loans, equity or government funding programs such as BAFA. The owner contributes no capital. Instead, they enter into a heat supply agreement: they purchase heat at a fixed price per square metre per month, typically for a term of 15 or 20 years.
This model is right for you if: Your system needs to be modernized, but you do not want to commit your own capital—and want to transfer the technical risk completely.
Services included:
- Planning – Technical concept, system sizing, coordination with authorities and funding bodies
- Financing – Full coverage of investment costs—including applications for available subsidies
- Construction & Installation – Removal of the old system, installation of the new technology, commissioning and acceptance
- Operation & Maintenance – Ongoing operation, maintenance coordination, fault management and emergency service throughout the contract term
- Control & Optimization – Digital monitoring, remote control and continuous efficiency optimization of the system
- Heat Billing – Recording heat consumption and billing owners and tenants according to transparent criteria
- Heat Supply – Supplying tenants with heat at a contractually agreed price—without involving the owner in day-to-day operations
What requirements need to be met?
- The system needs to be replaced
This model applies when the existing heating system has reached the end of its service life or an energy-efficient modernization is due. Enloc handles the replacement in full. - No capital is available or intended for the project
Owners who do not want to or cannot invest themselves transfer full responsibility for financing to Enloc. Their own capital is not tied up. - Complete relief is desired
Anyone who wants technology, operations, maintenance and billing from a single source—without having to get involved themselves—will find this the most comprehensive model in the contracting portfolio. - Long-term planning certainty
Fixed costs over 20 years provide predictability—both for owners planning ancillary costs and for tenants.
What Both Models Have in Common
In either case, you as the owner carry no operational burden. Faults, maintenance work and technical planning never land on your desk. The difference lies in the scope of the handover: with operations contracting, you retain the system and the right to make investment decisions. With classic heat contracting, you hand over both and receive maximum relief with zero investment risk in return.
There is also one aspect that many owners underestimate: A modernized heating system improves the property's energy efficiency rating—and therefore directly increases its market value.
Example Calculation
Financials & Calculation:
How Contracting Actually Works
A Fictional Example from Enloc AG
Contracting is not an end in itself. It is a business model for both sides. Those who understand how the figures work make better decisions. That is why we are showing you exactly what lies behind the model.
The starting point: Who invests what?
With classic heat contracting, Enloc finances the entire investment. Here is a realistic but fictional example based on one of our heating projects: a new heat pump system costs €100,000. The BAFA funding program reimburses 35 percent—or €35,000—directly. Enloc finances the remaining €65,000 through a bank loan or its own funds. The owner pays nothing.
The heat price: How is it calculated?
Enloc supplies heat at a fixed price per square metre per month—typically €2.50. For an apartment building with 600 square metres of living space, this results in annual revenue of €18,000. Maintenance costs, operating costs and the electricity purchased for the heat pump are deducted from this amount. Importantly, heat pumps use a special electricity tariff that is lower than the standard household rate of around €0.35 per kilowatt-hour. This keeps operating costs stable.
Payback: When does the investment pay off?
After all ongoing costs have been deducted, an annual return remains—around €10,000 in this example. This means an investment of €65,000 pays for itself in approximately 6.5 years. Depending on the size of the property and the system's performance, the refinancing period ranges from 5 to 12 years. After that, the profit phase begins, and the contract typically continues for several more years.
Why Good Planning Is Essential
For the financial model to work, the system must operate efficiently. That is why we invest substantially during the planning phase: hydraulic balancing, precise sizing and professional installation. A poorly planned system erodes the margin—that is our risk, not the owner's.
Conclusion
Contracting is not a one-size-fits-all model. It is a decision—and that decision depends on what you expect from your property and how much control you want to retain. Enloc takes both approaches to their logical conclusion: as a reliable operator or as a full-service heat partner.
Which Model Is Right for Your Property?
Let's Take the Next Step Together!
Whether you choose operations management, classic contracting or direct investment, the right decision depends on your property. We analyze it and show you which approach makes the most economic and technical sense.
