As the new government is being formed, the heat pump industry has reported positive interim results for the first quarter. The sharp rise in demand for heating grants seen in the final quarter of the previous year is now also reflected in sales, with 62,000 units sold (up 35 per cent). The industry association is calling on the new governing coalition to continue the transition in heating with determination.
Upward trend in heat pump sales becomes apparent
After a difficult year for sales in 2024, the transition in heating is getting back on track, according to Dr Martin Sabel, Managing Director of the German Heat Pump Association (BWP): “Consumers want to move away from fossil-fuel heating technologies and benefit from high quality both in installation by skilled German tradespeople and in the heat pumps themselves. Both are supported exceptionally well by the Federal Funding for Efficient Buildings scheme (BEG).
However, the new coalition must be aware that the market reacts very sensitively to abrupt changes. The new Federal Government must therefore aim to support the current trend of rising installation figures and high customer satisfaction by providing reliable conditions.”
The coalition agreement contains some positive announcements in this respect, but also leaves a number of questions unanswered.
Reliable reductions in electricity prices and network charges are crucial
According to the coalition agreement, reductions in electricity tax and a further reduction in network charges are intended to provide total relief of five cents per kilowatt-hour. The government is thereby sending an important signal in support of electrification. “Given the high level of dependence on energy imports from authoritarian regions of the world, this is about not only climate protection but also security of supply in Germany,” says Sabel.
Funding and the Building Energy Act
Dr Martin Sabel explains that the new coalition’s intention to continue the success of BEG heating grants on a reliable basis is very welcome: “Investments in the transition in heating are prepared over months, if not years. Everyone involved, from homeowners and tradespeople to the heating industry, therefore needs predictable conditions.”
In this respect, however, the wording on the Building Energy Act in the coalition agreement is unhelpful: “On the one hand, it holds out the prospect of abolishing the ‘Heating Act’, a law that does not even exist. On the other, it announces a reform of the Building Energy Act (GEG). In view of the European Buildings Directive and climate policy targets, it is perfectly clear that the GEG will continue to impose requirements for the use of renewable energy in new heating systems. The industry expects these requirements to be settled before the end of this year. A revision that drags on for years must be avoided. Policymakers remain responsible for providing guidance. Allowing citizens to fall into the cost trap of rising CO2 prices cannot be the incoming government’s plan,” says the BWP Managing Director.