Heat pump interest stagnates in Czechia as industry discusses support with government

Interest in heat pumps in Czechia is stagnating. Czech households bought 55.620 units last year, around eight percent fewer year on year. Moreover, most of last year’s demand came in the first half of the year. One of the main reasons was lower gas prices. Industry representatives are therefore calling for incentives for environmentally friendly heating, saying that investing in gas boilers may prove unprofitable in the future. This follows from statistics from the Ministry of Industry and Trade (MPO) and comments by the Association for the Use of Heat Pumps (AVTČ) to the Czech News Agency (ČTK).

Last year’s heat pump sales figures were still above average, but demand had been gradually declining from the record level in 2022. The year before last, Czechs bought more than 60.000 of these units, doubling demand. The trend continued into the beginning of the following year, with more than 40.000 heat pumps sold in the first half. By last summer, however, many retailers were already reporting a gradual decline in demand. The statistics confirmed this, showing that only around 15.000 units were sold in the second half of the year.

Manufacturers cited several reasons. The main one was the fall in gas prices, which reduced interest in switching to alternative energy sources. This was also reflected in a gradual rise in demand for gas boilers. Manufacturers said changes to the state’s subsidy rules were another factor.

In recent days, AVTČ representatives met with officials from the Ministry of Industry and Trade and the Energy Regulatory Office to discuss financial support and possible incentives for environmentally friendly heating over fossil fuels.

According to AVTČ chairman Radek Červín, the state must take into account that decisions on investments in heating systems should not be based solely on current purchase and operating costs, but should take future operating costs into consideration in particular. “The ratio between gas and electricity prices could quickly make gas uneconomical, because the current situation is an economic anomaly. In our view, the state should draw attention to this situation and respond now. Otherwise, there is a risk that thousands of new gas boilers will be installed in the Czech Republic, only for their economic advantage to disappear unequivocally within a few years because of gas prices or new emissions allowances,” Červín added.

According to the association, the talks marked progress, with the parties agreeing to seek a joint solution to provide greater incentives to switch to new sources of heat and energy. Červín said that examples from abroad would serve as inspiration, among other things. The association said the meetings would continue.

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