Germany's growing heat pump industry expects sales boost in 2025

Following a slump in sales last year, Germany's heat pump industry is expecting sales figures to rise significantly again in 2025, the German Heat Pump Association (BWP) said on Tuesday.

Demand and interest in subsidies are increasing, the industry lobby group said in Berlin. The market is therefore expected to recover as early as 2025, assuming that current government subsidies are continued and publicized further.

According to BWP figures, manufacturers in Germany sold around 193,000 heat pumps in 2024, 46% fewer than in the record-setting year of 2023.

Under the current conditions, the association believes that sales figures could rise by 33% to around 257,000 appliances in the current year.

The BWP forecast even stronger growth if there were additional impetus, such as relief on electricity prices.

The Federal Funding for Efficient Buildings (BEG) heating subsidy programme, which was launched by the German government in February 2024, has approved funding for more than 151,000 applications, the group said.

That includes about 37,000 approvals in December, according to the BWP.

"The BEG funding is finally starting to take effect," BWP Managing Director Martin Sabel said.

He urged the next German government, which is set to be formed following February 23 elections, to keep the country's highly controversial Building Energy Act (GEG), which mandates higher energy efficiency standards for many buildings.

Large landlords and others have complained about the high costs of complying with the law, including expensive renovations and retrofits, including in many cases replacing older heaters with heat pumps.

The law had sent out a signal for renewable energies, Sabel said, and he urged politicians to "recognize the heating transition as an opportunity."