Far fewer homeowners are applying for state funding for a heat pump than last year. Associations are calling for planning security for consumers and relief from electricity prices in order to boost sales.
Demand for heat pumps has collapsed as suddenly as it had skyrocketed in the wake of the Ukraine war and skyrocketing gas prices. In the first eight months of this year, applications for state funding fell by more than 70 percent compared to the same period last year, said the Federal Heat Pump Association.
According to the heat pump industry interest group, the heating debate of the past few months and uncertainty about the funding rules that will apply from 2024 are responsible for the collapse in demand. For comparison: According to a study by the consulting company PWC, the number of new gas heaters rose by almost 30 percent in the first half of the year, and sales of new oil boilers more than doubled.
A separate electricity tariff for the heat pump?
The manufacturer lobby is now campaigning for the state and thus the taxpayer to boost sales of heat pumps again. The Federal Heat Pump Association spoke out in favor of reducing electricity prices. The background to the association’s demands is the heat pump summit that is taking place today at the Federal Ministry of Economics.
Specifically, the Federal Heat Pump Association is calling for the electricity tax to be reduced to the minimum under European law. After the heating debate, people need a clear sign that switching from gas and oil to heat pumps quickly pays off thanks to low operating costs. The association also demands that electricity used in heat pumps benefit from lower VAT. German Environmental Aid is even advocating for its own “heat pump electricity tariff”.
The state covers up to 70 percent of the costs
In fact, the current situation on the energy market is currently not helping the heat pump industry. The gas price is back to pre-war levels, and electricity prices have recently even risen. In view of the running costs, the incentives for consumers to switch to a heat pump are correspondingly low.
The state is already making a lot of concessions to homeowners when it comes to fixed purchase costs. The Heating Act passed by the Bundestag stipulates that from next year, under certain conditions, it will cover up to 70 percent of the costs for climate-friendly heating. The maximum eligible costs for a single-family home should be 30,000 euros. The maximum state subsidy is therefore 21,000 euros.
Doubts about the heat pump expansion target
However, the legislature has not issued a general ban on oil and gas heating in the Heating Act. Modern systems using these fossil energies can still be installed from 2024.
The federal government’s goal remains that there will be six million heat pumps in Germany by 2030. However, if the government does not take any measures to counteract the reduced demand, its expansion goal will become a long way off, said Martin Sabel, managing director of the Federal Heat Pump Association. According to the association’s forecast, there will be just over two million at the end of 2023.