Panasonic Forms Capital and Business Alliance with tado° to Drive Energy-Efficient Heating in Europe

Panasonic Corporation's Heating & Ventilation A/C Company has become the first heating equipment manufacturer (*1) to form a capital and business alliance with tado°, the vendor agnostic European leader in home energy management solutions. Through a €30 million equity investment, Panasonic will strengthen its collaboration with tado°. Panasonic will also take a seat on tado°'s board, deepening operational collaboration to drive greater synergies and accelerate innovation.

Panasonic and tado° have committed to addressing the specific needs of the European market, where sustainability and energy efficiency are increasingly prioritised. With the strict environmental regulations in place, this partnership is well-positioned to provide European customers with advanced solutions that meet their heating needs while minimising their carbon footprint.

Strategic Partnership with tado°

The investment, announced at ISH in Frankfurt, comes a year after the two companies signed a new partnership agreement that combined Panasonic’s state-of-the-art heat pump products and technology with tado°’s market-leading smart heating control and energy management services. Customers have benefitted from specifically tailored heat pump management software that optimised their Panasonic Aquarea heat pump settings automatically and shifted its electricity demand to times when renewable energy was available, and prices were lower.

Through this capital and business alliance, both companies will collaborate to accelerate innovation in energy-efficient solutions. By sharing product and service specifications, Panasonic and tado° will jointly develop advanced operation control software for Panasonic Aquarea Heat Pumps. Utilising real-world user data and field test insights, this software will enhance system efficiency and optimise performance. Scheduled for release via a software update in September 2025, it aims to achieve up to a 30% reduction in energy consumption.

A recent survey of tado° customers (*2) in August 2024 revealed that approximately 75% of households still rely on gas or oil heating systems. To accelerate the transition to heat pumps, Panasonic and tado° have already begun integrating Panasonic’s exclusive design into the tado° app.

Expanding the Potential of Aquarea Heat Pumps

Air-to-water heat pumps (A2W) extract heat from the ambient air to produce hot water, which is then circulated throughout buildings for heating. Compared to fossil fuel-based heating systems, A2W significantly reduces CO2 emissions and environmental impact, making it an increasingly attractive solution.

Panasonic launched its Aquarea Heat Pumps for residential use in Europe in 2008, leveraging its expertise in heat pump technology. A key strength of Panasonic’s Aquarea is its unique ability to maintain heating performance even in extremely cold climates. In May 2023, Panasonic became the first Japanese manufacturer to adopt R290, a natural refrigerant with an ultra-low global warming potential, aligning with Europe's strong environmental focus.

(*1) Based on internal research.

(*2) Based on a survey conducted by tado° in August 2024.

■Overview of the investment