BWP Sees the Heat Transition in Jeopardy

June 16, 2026

Source: E & M powernews

Heat pumps are regaining momentum in the heating market. However, political decisions could slow this upward trend and delay investments.

The German Heat Pump Association (BWP) warns of setbacks for the heating transition. At a press conference on June 15 in Berlin, the association criticized both the planned Building Modernization Act (GModG) and the discussions regarding changes to heating subsidies. According to industry estimates, the planned GModG and uncertainty about future subsidies threaten to slow the market upswing for heat pumps.

After significant fluctuations in recent years, sales figures for heating heat pumps are on the rise again. The BWP sees this as a sign that the market is beginning to stabilize. This makes reliable political framework conditions all the more important now, so that consumers do not postpone their investment decisions once again.

The BWP views political debates as a key factor influencing demand for heat pumps. Discussions about legislation and subsidy conditions have already unsettled many homeowners in the past.

BWP Managing Director Martin Sabel emphasized the importance of reliable framework conditions for long-term investments in new heating systems. “A great deal has been invested in production facilities and training,” Sabel explained at the press conference. Companies in the heating industry have prepared themselves for the shift to heat pumps. “It is now essential that this trend continue.”

Criticism of the Building Modernization Act

The association is particularly critical of the draft of the GModG, which is currently being debated in parliament. Referring to the current draft version, Sabel said: “In our view, the current GModG is more of a step backward when it comes to climate protection and energy independence. The level of ambition has declined significantly.” The association argues that the proposed focus on the “bio-ladder”—that is, increasing requirements for the use of biomass and other renewable energy sources in heating systems—diverts attention from effective measures to decarbonize the building sector. Investments in heat pumps, on the other hand, would strengthen the domestic heating industry while simultaneously reducing dependence on gas and oil imports.

The BWP also calls for greater clarity for consumers. Homeowners must be able to understand which requirements apply throughout the entire lifespan of a new heating system. The association therefore advocates for a clearer enshrinement of the goal of climate neutrality in the law. It also criticizes the proposed regulations for hybrid heating systems. Heat pumps should not merely serve as a supplement to new gas or oil heating systems without making a significant contribution to the use of renewable energy. The association therefore calls for guidelines for the design of such systems.

From the BWP’s perspective, the law fails to meet key goals of the heating transition. “With the Building Modernization Act, the federal government risks major setbacks in the heating transition,” said Sabel. The provisions outlined in the draft bill could unsettle homeowners and delay investments in new heating systems. Furthermore, heat pumps in hybrid heating systems should not be “misused as a fig leaf to make fossil-fuel heating appear green,” according to the BWP’s executive director.

Subsidies Remain a Point of Controversy

Furthermore, the future of the Federal Subsidy Program for Energy-Efficient Buildings (BEG) is sparking debate within the industry. Although the governing parties had agreed to continue heating subsidies at least through 2029, However, the BWP fears that the upcoming budget deliberations could once again cast doubt on long-term funding.

The association points to the economic significance of the subsidies. According to the association, every euro of funding triggers a multiple of that amount in private investment. This benefits manufacturers, skilled trades businesses, and other companies along the value chain. At the same time, the industry emphasizes the importance of lower electricity prices for the cost-effectiveness of heat pumps.

Heat pump provider Octopus Energy also warns against short-term changes to subsidy conditions. Bastian Gierull, the company’s head of Germany, criticizes proposals to limit subsidies to lower-income households or to provide them primarily through tax incentives rather than direct grants. Such proposals could create new uncertainty and delay investments. Instead of short-term policy shifts, the market needs reliable framework conditions. However, the company considers a gradual phasing out of subsidies to be possible in principle.

Author: Davina Spohn