On February 3, 2026, Tiko Energy Solutions, the Swiss demand response subsidiary of French energy giant Engie, formally notified its customers that it would cease all operations. The announcement forces an unknown but potentially significant number of French households to schedule the removal of connected thermostat devices that can no longer be monitored or maintained, raising questions about the sustainability of subsidy-driven smart energy business models.
A Free Service Built On Government Subsidies
Tiko’s proposition in the French market centered on a straightforward exchange. The company installed connected control units on residential electric radiators at no cost to homeowners, enabling remote temperature management through a mobile application. In return, Tiko gained the ability to slightly reduce heating output during peak demand periods on the national grid, a practice known as distributed demand response.
The Zurich-based firm, originally founded in 2012 as Swisscom Energy Solutions, was acquired by Engie in March 2019. Its virtual power plant platform aggregated small consumption reductions across thousands of households and sold this flexibility to RTE, the French transmission system operator, as a certified demand response aggregator. Revenue also flowed from France’s Energy Savings Certificates (CEE) mechanism and, critically, from the government’s “Coup de Pouce Pilotage connecté du chauffage pièce par pièce” bonus scheme.
That bonus was terminated on November 22, 2024, after France’s Ministry of Energy Transition detected widespread fraud across the broader connected thermostat subsidy sector. An arrêté published on November 18, 2024, formally ended the program, which had only been operational since December 2023. Within weeks, Tiko’s liquidation was entered into the Zurich commercial register.
Safety Concerns Preceded The Closure
The shutdown did not come entirely without warning. In December 2025, Engie launched a product recall affecting the connected thermostat devices marketed under its “Mon Pilotage Elec” brand, including units manufactured by Tiko. Internal quality assessments identified overheating risks that could potentially cause fires. Customers were advised to contact technicians for device removal, but no replacement equipment was offered because the manufacturer had already wound down operations.
The February 2026 customer notification instructed users to call a dedicated service line to arrange free professional removal of Tiko hardware. The communication emphasized that leaving unsupervised equipment connected could pose safety risks, and a 24-hour emergency hotline was provided for immediate incidents.
A Business Model Under Scrutiny
The rapid trajectory from aggressive customer acquisition to liquidation has drawn criticism. Throughout 2024, Tiko actively expanded its French customer base, capitalizing on CEE subsidies and the Coup de Pouce bonus to fund free installations. Once the bonus was revoked, the underlying economics apparently could not sustain operations.
The situation raises broader concerns about demand response business models that depend heavily on government subsidy programs rather than purely market-based revenue. Tiko’s role as an Engie subsidiary adds another dimension, as the parent company is a major participant in France’s CEE system and a signatory of the very Coup de Pouce charter that funded Tiko’s growth.
Customers Face An Uncertain Transition
Former Tiko users now face a dual challenge. Their connected devices will become inoperable, reverting households to manual radiator control. At the same time, France’s regulatory environment is moving in the opposite direction, mandating that all residential and commercial buildings install programmable thermostat systems.
The obligation, established by Decree No. 2023-444 of June 7, 2023, originally set a January 2027 deadline. In December 2025, the French government pushed this requirement back to January 1, 2030, following opposition over the cost burden on households. Programmable thermostats that meet the decree’s specifications range from approximately €60 to €250, with professional installation adding €150 to €300.
The lack of open-interface hardware further complicates matters for affected households. Tiko’s proprietary control units are not designed to integrate with third-party home automation platforms, meaning the devices have essentially no residual value to consumers. Early discussions among users around open-source community projects, such as Home Assistant integrations, remain nascent at best.
Voltalis Emerges As The Primary Alternative
France’s other major distributed demand response provider, Voltalis, operates on a similar model but appears to stand on more diversified financial footing. The company, majority-owned by infrastructure investment firm Meridiam, reports over 250,000 equipped buildings and 1.5 million connected appliances across eight European countries.
Voltalis secured a landmark 721 MW, 10-year demand response contract from the French Ministry of Energy Transition, giving it long-term revenue visibility through at least 2032. In 2024, the company closed €215 million in project financing to support the rollout of 1.4 GWp of demand response capacity, the first non-recourse project financing structure dedicated to demand response in Europe. The company has also announced a goal of reaching 10 GWp capacity across France and Europe by 2030.
Some former Tiko customers have reportedly begun transitioning to Voltalis, though it remains to be seen whether a similarly structured free-installation model will prove sustainable without recurring government bonus programs.
Wider Implications For Europe’s Demand Response Sector
The Tiko shutdown arrives at a critical moment for residential demand response in Europe. The International Energy Agency forecasts 500 GW of demand response capacity needed globally by 2030, representing an estimated investment of nearly €100 billion. France has been a pioneer in opening electricity markets to distributed demand response since 2003, and RTE has contracted up to 2,900 MW of demand response capacity through its current tender rounds.
Yet the collapse of a subsidiary of one of Europe’s largest energy companies underscores the fragility of business models that rely on stacked government incentives. When one layer of subsidy is removed, even ostensibly viable operations can unravel quickly, potentially stranding consumers who were told their participation served both personal convenience and the public good.
The French government has indicated that the Coup de Pouce thermostat subsidy may eventually be reinstated in a more tightly regulated form, but no timeline has been confirmed. In the meantime, the basic CEE premium under the BAR-TH-173 standard remains available for thermostat installations, though at significantly reduced amounts.
