Demand for heat pumps plunges, exports sustain Czech manufacturers

Demand for heat pumps is falling. European sales have dropped 47 percent year on year so far this year, returning to 2019 levels. The heat pump market is developing similarly in the Czech Republic. Czech manufacturers are currently being sustained primarily by exports. This is according to information provided to the Czech News Agency (ČTK) by the Association for the Use of Heat Pumps.

In the first half of last year, 1.44 million heat pumps were sold in Europe; this year, sales have barely reached half that volume. The European Commission had previously set a target of 60 million installed heat pumps by 2030. There are currently 24 million, and the European Heat Pump Association says the target is therefore at risk. According to the association, the Commission is likely to revisit the issue of support for heat pumps.

The current situation is putting companies’ operations at risk, according to the association. Czechia is one of Europe’s leading manufacturers. In 2020, 24,000 heat pumps were sold in Czechia; after energy prices rose, demand more than doubled in 2022, but has now fallen.

„While the year-on-year figures look alarming, it should also be stressed that the market was overheated in an unhealthy way, particularly in 2022, driven by uncertainty and hasty decisions. This was also accompanied by the arrival of companies with no track record and unsuitable installations. That may also have had a negative impact on the overall perception of heat pumps in Czechia,“ said Radek Červín, chair of the Czech association.

He said the market situation could also provide an opportunity to put the market on a healthier footing and improve consumer protection. „We believe that the subsequent increase in sales will be healthy and will help consumers save on heating costs,“ Červín said.

Companies also confirm that demand is falling, particularly for installations in single-family and apartment buildings. For Czech manufacturers, exports are therefore currently crucial, as is growing interest from businesses. Tomáš Kott, managing director of Master Therm, expects the Czech market to stagnate over the course of this year, so the company is increasingly active in Ireland, the United Kingdom and the Netherlands. „For households using conventional energy sources, purchasing a heat pump is often expensive; concerns have also been raised by the approach of the authorities and increases in the regulated component of electricity prices,“ Kott said. He believes greater support for households could help address the situation.