German heating industry calls for policy commitment as sales of climate-friendly systems halve

Solar and heating industry associations have appealed to politicians at the federal and state levels to show clear policy commitments to the energy transition after demand for heating systems based on renewable energy fell sharply in 2024. Compared to 2023, heat pump sales last year dropped by 46 percent, while sales for solar thermal systems fell around 40 percent, and biomass heating system sales dropped 52 percent, according to figures by the German Solar Industry Association (BSW-Solar) and the Federal Association of the German Heating Industry (BDH). 

Manufacturers in Germany sold a total of 712,500 heating systems in 2024, a 46 percent decrease compared to the previous year, with the negative trend affecting all technologies, BDH said. While gas boiler sales dropped 48 percent, they continued to dominate the heating market with 410,500 units sold. This was followed by 193,000 heat pumps and 85,000 oil-based heating systems sold.

In addition to the energy crisis subsiding, uncertainty as to which energy policy priorities the new German government will set is likely to have contributed significantly to the decline in demand for renewable-based heating systems, BSW-Solar said. According to the BDH, the drop was partly a result of the "protracted and public debate surrounding the Building Energy Act" – Germany's law to gradually phase out fossil fuel boilers. Additionally, people might be putting off modernising their heating systems as they wait for local authorities to publish their municipal heat plans, BDH added.

"People need to know as quickly as possible in which areas district heating networks are planned and where they are not," BDH wrote in a press release. "This information should be provided independently of the finalisation of municipal heating planning."

The majority of voters in Germany (63%) said they believe the energy transition in the buildings sector should be driven forwards, for example by increasing the share of renewables in heating systems, a survey commissioned by BSW-Solar found. This was true regardless of party affiliation, with most voters supporting the Greens (86%), SPD (75%) the Left (74%), the CDU/CSU (70%) and the FDP (69%) being in favour.

Germany aims to phase out fossil fuels in heating to help bring down emissions in the buildings sector. While climate-friendly heating technologies are now most common in new buildings, the country’s existing buildings continue to rely on fossil fuels, according to a report by the German Energy Agency (dena). However, a law designed to promote this transition was the subject of fierce debate, with populist parties successfully capitalising on anxious voters' concerns that they won't be able to afford the transition to a cleaner future.