Heat pump industry demands clear rules

27.11.2025

Source: E & M powernews

At the Heat Pump Forum in Berlin, industry representatives assess the market situation and, together with manufacturers and the housing industry, call on politicians to provide a stable framework for the heating transition.

At the start of the two-day "Heat Pump Forum", the German Heat Pump Association (BWP) explained the situation on the heating market. According to Chairman of the Board Claus Fest, the association expects around 300,000 systems to be sold in the coming year. This would correspond to an increase of over 50 percent compared to 2024. The industry's expectations are also higher for the following years. However, Fest said on November 26 that this would require reliable regulations and funding conditions.

The industry received support from the Federal Ministry for the Environment. Ministerial Director Berthold Goeke, responsible for climate protection, said that politicians must overcome the uncertainties of recent months. The unclear regulatory and funding situation had led to attentism among building owners.

Goeke went on to explain that the social organization of the heating transition must be carried out in such a way that households retain planning security. Regarding the development of CO2 pricing, he said that Germany would stick to the national system in 2027, as the European launch had been postponed to 2028. The level is likely to be in the order of the CO2 exchange price level from 2025, but is still being negotiated.

Subsidies are the wrong approach

Axel Gedaschko, President of the Federal Association of German Housing and Real Estate Companies, expressed clear criticism of the current funding logic. His association represents around 3,000 member companies that house around 13 million people. Gedaschko said that a rent increase of two euros per square meter after renovation would overburden many residents. This increases social insecurity and jeopardizes trust in democratic institutions, he warned.

According to him, apart from district heating, only the use of heat pumps is currently worthwhile, especially in new builds. At the same time, the housing industry is facing structural challenges: In addition to energy-efficient refurbishment, an ageing population needs adapted housing. Without affordable housing, the industry would also be unable to attract additional skilled personnel. Many companies are currently having to sell holdings in order to make other buildings more energy-efficient - "a catastrophe", said Gedaschko.

Excessively high standards prevent refurbishment

Federal funding also too often reaches households with above-average incomes, while the worst buildings are not the focus. Requirements such as refurbishment to efficiency standards 55 or 40 are hardly economically feasible. According to studies, an Efficiency House 85 standard is sufficient to heat buildings with heat pumps. With the same budget, many more buildings could be renovated and more CO2 could be saved, Gedaschko argued.

Gradually replacing natural gas heating

Energy suppliers also see the switch in the heating market as urgent, as Nikolaus Meyer from heating supplier Hansewerk Natur. The Quickborn-based subsidiary of the Eon Group has already converted around 40 percent of its systems to renewable energy sources. A perspective must be found for the remaining plants, which are mainly operated with natural gas.

The natural gas business model will become less viable by 2030 in view of rising CO2 taxes and stricter regulation, said Meyer. Biogas is a viable alternative, but is not available in sufficient quantities. Local heating networks with heat pumps based on renewable electricity could be created in neighborhoods.

Combined heat and power generation had benefited from subsidies since 2002, but would no longer be climate-friendly in its current form in the future. Meyer emphasized the need to ensure the feasibility of fossil-free solutions. In existing neighborhoods, space requirements and noise protection are often obstacles. He called for a more rapid expansion of heating networks and criticized the false incentives in the BEG funding, which favors individual solutions even where district heating is available.

"Reliable rules are needed for investments in decarbonization, for example in the AVB District Heating and the Heat Supply Ordinance," he demanded. Fossil-based heat continues to benefit from lower levies and the externalization of climate impact costs, while fossil-free heat is at a competitive disadvantage. To improve affordability, Meyer mentioned the optimization and scaling of heating plants with large heat pumps. He concluded by calling for the funding of the federal program for efficient heating networks to be made permanent.

Author: Susanne Harmsen