Heat pump sales in Germany halved in 2024

After a record year in 2023, heat pump sales in Germany fell sharply last year. At the same time, interest in subsidies is growing. The industry association expects the market to recover as early as 2025 if subsidy programmes continue and are promoted further.

Heat pump sales in Germany fell by 46% year on year in 2024, with approximately 193,000 units sold. According to the German Heat Pump Association (BWP), the main reasons were uncertainty surrounding municipal heating plans and a lack of awareness among the wider public about existing support programmes.

Over the past two years, heat pump manufacturers have responded to a sharp increase in demand by investing billions of euros in production lines, skilled workers and training capacity across Europe.

“Our industrial and commercial companies have created new jobs in Germany and Europe. We have prepared for tough global competition and are well positioned for a market that will soon pick up again,” said Klaus Ackermann, deputy CEO and managing director of NIBE Systemtechnik GmbH.

Interest in support is growing

With around 150,000 new applications for subsidies to purchase heat pumps, interest has risen rapidly, the BWP said, adding that sales could reach the projected level as early as this year.

Ackermann said all parties in parliament must embrace the transformation of the heating sector and help strengthen the emerging industry. Germany has laid the foundations for achieving a climate-neutral building stock through its Building Energy Act and municipal heating planning regulations, he said.

“These structures should remain in place until the EU emissions trading system for heating and transport is introduced, as planned for 2027,” Ackermann said.

Decarbonising heating in Germany

The BWP said that the Building Energy Act, which sparked a controversial public debate in 2023 about phasing out fossil fuel heating systems, was designed to give customers, companies and installers a clear picture of the transition pathway for the heating sector.

Repealing the regulation, a move backed by the conservative opposition alliance of the CDU and CSU parties, which is leading opinion polls ahead of the upcoming parliamentary election, would therefore only cause frustration among customers and manufacturers, the BWP said.

It is wrong to assume that natural gas could be replaced by hydrogen on a large scale, the BWP added. The industry lobby group said the planned phase-out of fossil fuel heating systems should continue, not only to reduce emissions but also to protect customers from false promises and poor investments.