Analysis from the European Heat Pump Association shows that several European countries have reduced available subsidies for heat pumps over the past two years, with the general trend shifting towards targeted aid linked to low incomes or energy performance.
European countries have adjusted or tightened their subsidy schemes for heat pumps in the past two years European Heat Pump Association (EHPA).
The association has updated its regulations guide on residential heat pump subsidies available across Europe, last published in 2023.
EHPA says the overall trend of its findings highlights a pattern of rationalization and increased control over public spending, rather than a large-scale expansion of subsidies. It adds that there is a clear shift towards targeted aid, with a growing focus on low-income households, as seen in countries such as France and Germany. In other cases, such as in Poland, suitability is linked to energy performance or lists of approved equipment.
In some EU countries, subsidy levels are being reduced and programs are being ended. Italy’s Efficienza residenziale pubblica subsidy and loan scheme will expire at the end of this year, as will Austria’s Sauber Heizen für Alle subsidy scheme and the Spanish income tax deduction for energy efficiency improvements.
Other programs have been temporarily suspended, such as the Brussels subsidy scheme, while the Belgian region forms a new government, while some programs elsewhere have faced delays or restructuring due to political transition or budget constraints.
Milagros Garcia, EHPA policy officer, called the findings “self-defeating moves.” “They deprive citizens of the opportunity to invest in a sector that produces mainly in Europe and produces clean technology that promotes Europe’s energy independence and the path to decarbonization of the economy,” Garcia said.
In response, EHPA has reaffirmed its call for clear, long-term subsidy schemes and supportive policies, advising that these will increase investor, manufacturer and consumer confidence in heat pumps, in turn allowing the sector to deliver for Europe.
In February, EHPA said that sales of heat pumps in the top 13 European markets, which make up around 85% of the continent’s total market, increased by average 23% year on year in 2024.
In July, Berlin-based cleantech consultancy Apricum released a white paper explaining that customers in the European heat pump market are facing a complex and fragmented installation process.
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