EU heat pump sales continue to decline despite efforts to hit targetsÂ
|According to the latest figures by EHPA, heat pump sales experienced a decline last year, despite it being a central part of the EU’s decarbonisation efforts.Â
In the EU, a third of energy-related CO2 emissions are related to the building sector, which is primarily due to the reliance on coal and gas for heating. Heat pumps, which use ambient heat and renewable energy, are seen as a way to lower these emissions.
However, heat pump sales are declining. In 2023, only three million new units were sold, a 6.5% decrease from 2022, as reported by the European Heat Pump Association (EHPA).
The EHPA warns that European Commission models require 60 million heat pumps to be installed in Europe to meet 2040 climate targets. At the current pace, there will be a shortfall of 30 million units.
Germany was one of the few countries in the EU that had strong sales still, with 360,000 units sold in 2023, a 58% increase from the previous year. Yet, this surge may be temporary. The German heating association predicts a drop to 200,000 units in 2024, according to projections.Â
As sales slow, supply chains are shrinking. German manufacturer Stiebel Eltron furloughed 2,000 workers in May, and Viessmann followed suit with 100 workers in July.
Germany’s goal of installing 500,000 heat pumps this year—a target that led Berlin to encourage manufacturers to expand production—is now deemed unattainable by the German Heating Association.
The incoming European Commission in Brussels could struggle to revitalise the heat pump markets. “The first priority for a new Energy Commissioner must be to finally release the Heat Pump Action Plan,” said EHPA’s Mélanie Auvray.Â
Initially expected in early 2024, this plan was removed from the Commission’s agenda in late 2023. It was intended to provide high-level support for the emerging heat pump market.
Beyond the plan, which EHPA envisions will include various policy measures such as upskilling installers and introducing new financing models, the EU’s next top energy official must address the gas-to-power price ratio.Â
Despite being more climate-friendly, electricity-powered heat pumps are currently more expensive to operate than conventional gas boilers, as European gas prices have returned to pre-2020 levels.