How Germans are falling out of love with heat pumps - Is the Green Revolution bubble bursting?
By 2045, Germany is aiming for net zero emissions of greenhouse gases
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Germany's slump in heat pump sales has haltered the Government's plans to decarbonise heating.
Last year, Germany agreed to reduce emissions from heating buildings, which are directly responsible for around 15 per cent of the country’s entire CO2 output.
The controversies about climate-friendly heating in society and government coalition were described as “one of the greatest political dramas in recent German history.”
While advocates towards clean technologies such as heat pumps argued this was a key way to reach climate targets, critics argued it would overburden homeowners and tenants with investment costs.
Germany is falling short of its goal to install 500,000 heat pumps annually
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The Government eventually compromised and agreed to top up subsidies and effectively postpone a broad ban on new fossil duel heating systems originally planned for 2024 by several years.
But now, a hold-up in sales of heat pumps in Germany could indicate public uncertainty about the policies.
Stiebel Eltron, an electrical company based in Germany, has reported its plans to eliminate jobs as sales of its heat pumps remain below expectations.
The manufacturer, which is one of the leading makers of renewable energy heating systems, employs around 6,000 people but is expected to cut 1,000 jobs.
Stiebel Eltron had predicted steady sales growth after the Government's plans to slash carbon dioxide emissions from heating.
Ulrich Stiebel, the co-owner, told reporters on Monday during a meeting with Economy Minister Robert Habeck in Holzminden: "Yes, we have to cut staff."
Writing on X, Richard Tice MP said: Customers in Germany seem not to like heat pumps….."
Germany is falling short of its goal to install 500,000 heat pumps annually, with only 90,000 devices sold by the country‘s manufacturers in the first half of the year.
In the first five months of 2024, sales dropped 52 per cent to 74,000 units, compared to the same period one year earlier.
BDH managing director Markus Staudt said: "Last year's debate about the Building Energy Act is still having an effect on people.
"There is still a great deal of uncertainty when it comes to modernising heating systems."
By 2045, Germany is aiming for net zero emissions of greenhouse gases and, therefore, all heating systems must be switched to renewable energy sources.
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In 2023, Germany saw heat pump sales jump 59 per cent but the European Heat Pump Association (EHPA) say that was partly a hangover from high demand the previous year when orders could not be filled and there was a backlog.
Meanwhile, in other parts of Europe heat pump sales dropped in 2023 as manufacturers in most markets saw a decline from the year before.
According to figures released by the EHPA, in 2023, sales amounted to just three million new units—a 6.5 per cent drop from 2022 sales.
Sales dropped across Europe in France, Italy, Sweden, Finland, Poland, Denmark, Austria and Switzerland.