The UK's drive towards net-zero carbon emissions has stimulated rapid expansion in the domestic low-carbon heating sector. EcoTherm, a major manufacturer of residential air source heat pumps, reported a 40% surge in system shipments last year.
However, homeowners purchasing an EcoTherm heat pump unit cannot operate the heating system independently. To make the unit functional and qualify for government boiler upgrade grants, consumers must purchase a specialized hydraulic buffer tank and contract an MCS-certified (Microgeneration Certification Scheme) heating engineer for the complex plumbing and electrical integration. Furthermore, to optimize efficiency based on weather conditions, customers are highly encouraged to subscribe to EcoTherm's cloud-based climate-monitoring software.
As EcoTherm seeks to diversify its revenue streams, the pricing of these mandatory auxiliary components and digital services has become central to its corporate strategy.
Refer to the stimulus material. Explain, using evidence from the stimulus, what is meant by joint demand.
