Czechs bought over 23,000 heat pumps last year as market stalled after boom

Czechs bought 23,338 heat pumps last year. This was almost identical to the previous year, when interest in renewable energy sources fell back to pre-crisis levels following a period of strong growth during the energy crisis. This follows from statistics from the Ministry of Industry and Trade (MPO). According to the Heat Pump Association (AVTČ), demand has so far risen slightly this year, likely also helped by uncertainty linked to the conflict in the Middle East. However, the association is also calling for predictable state support.

A total of 330,000 heat pumps with combined capacity of 4.1 gigawatts (GW) are now installed in the Czech Republic.

According to the statistics, air-to-water heat pumps attracted the greatest interest, accounting for 92 percent of all installations. The most efficient but more capital-intensive ground-to-water type recorded sales of 1770 units.

According to the association, demand has so far risen slightly this year despite the suspension of state subsidy support. It is currently 16 percent higher than in the previous year. Including previously untracked air-to-air heat pumps intended for heating, the number of domestic installations exceeded 15,000 units at the start of the year. Conventional air-to-water, ground-to-water and ground-to-air heat pumps account for around one-third of that total.

Based on experience from previous years, the association says that some consumers only start investing when a crisis hits and energy costs rise. "That did not happen last year, which is precisely why the market largely stagnated. We are now seeing growing interest, very likely also in the context of uncertainty caused by the war in Iran. Energy prices and concerns about energy security remain the biggest motivators. However, it is too early to assess a change in the trend; only full-year data will show that," said Eva Neudertová, director of the Heat Pump Association.

According to the association, the market has long lacked stability, a situation also worsened by the suspension of the New Green Savings programme. AVTČ is therefore calling for predictable terms for state support.

"New Green Savings was a stimulus for the entire market. However, its design previously favoured very costly renovations involving insulation. It is therefore very good news that the state is now promising support for partial measures, which can be a significantly cheaper first step towards savings," Neudertová noted.

At the same time, she warned that the shift to support in the form of interest-free loans, which the Ministry of the Environment is currently preparing, is a question mark for the market. "Heat pumps have not previously been financed through loans, so the question is whether such an offer will motivate households to make energy savings. At this point, it is of course crucial that we achieve continuous support without lengthy interruptions. However, whether renewable energy sources will attract interest in the future even without direct subsidies, and whether the Czech Republic will be able to meet its commitments in this area, remains an open question," Neudertová added.