11/03/2023
Source: Energy & Management Powernews
The German Heat Pump Association sees the decline in funding applications for heat pumps as an alarm signal for climate protection and for Germany as an industrial location. It is making demands.
70 percent fewer applications for funding for heat pumps: the German Heat Pump Association (BWP) sees this decline in the first seven months compared to the same period in 2022 as an alarm signal. With the help of a recent study, the association is backing up seven demands on how to positively shape the transformation process of the heating industry in Germany.
The heat pump association commissioned the study "The heat pump ramp-up after the heating debate" from consultancy firm Pricewaterhouse Coopers (PWC) Germany. According to the BWP, it is alarming for climate protection and for Germany as an industrial location that the demand for oil and natural gas boilers has risen sharply by 102% and 29% respectively in 2023, while the attractiveness of heat pumps is waning.
This is because the heating industry is currently massively expanding production capacities for heat pumps and increasing investments accordingly, which is not compatible with the decreasing number of applications for subsidies. The BWP proposes seven measures to achieve the German government's 2030 target of 6 million installed heat pumps (500,000 new ones per year from 2024) after all.
More funding, faster approval and maintaining the image
Firstly, the proposals aim to increase demand for heat pumps. Firstly, this could be achieved via the electricity price, provided that politicians decide to reduce the tax and duty burden on electricity. The electricity tax should only amount to 0.1 cents/kWh (minimum under European law) and VAT for heat pump electricity should temporarily fall to 7 percent. Secondly, the BWP advocates reliable and simple funding programs for heat pumps.
The third demand put forward by the BWP is a fixed expansion path for heat pumps, which would prevent the "migration of another green technology of the future" from Germany. Another BWP proposal is to improve communication about heat pumps in order to emphasize their value as a key technology for heat transformation.
Another major area of the association's demands concerns the framework conditions for the production of heat pumps. The fifth measure expects correspondingly simpler and faster approval procedures for production sites. As with LNG terminals, for example, the procedures for "cleantech companies and their production" should also be significantly shortened.
The sixth measure demanded by the BWP is a funding framework for investments. Various EU packages of measures should be implemented quickly at national level. Concessionary loans or accelerated depreciation would enable additional investments and secure liquidity. Seventhly and finally, the BWP also calls on politicians to create attractive industrial locations and thus also take into account the need for skilled workers in heat pump production.
The study " The heat pump ramp-up after the heating debate " commissioned by the Federal Association has been published by PWC on its website.
Author: Volker Stephan
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