Customer uncertainty pushing Germany off track in heating sector decarbonisation – industry
Clean Energy Wire
Sales of heating systems in Germany have dropped significantly in the first half of 2024, with uncertainty among customers meaning that manufacturers were selling 43 percent fewer systems than during the same period one year before, said industry association BDH. After achieving record sales in 2023, “the market has returned to the long-term average from before 2020,” the BDH said. Sales of heat pumps decreased by 54 percent to 90,000 units sold between January and the end of June. The BDH expects that a maximum of about 200,000 units will be sold by the end of the year. “People need planning security to modernise their heating system,” the BDH argued. The industry lobby group said that uncertainty about pending policy decisions, for example regarding the 2025 budget and the country’s Climate and Transformation Fund, has led potential customers to delay their purchases until there is greater clarity, also about municipal heating transition plans. According to the association, about half of the 21.5 million heating systems in Germany are outdated and the sluggish pace of replacement means that climate targets for the building sector could be missed.
BDH head Markus Staudt said policymakers should intensify their efforts to communicate the required changes and inform citizens about available low-carbon technologies and the many existing support options. “We have an attractive support system, all technical solutions are available," as are skilled workers, Staudt said. “These are good conditions for investing into heating system modernisation now.”
The German government aims to install 500,000 new heat pumps per year from 2024 in a bid to decarbonise the country's heating sector, which largely still relies on fossil fuels. After long and controversial discussions, Germany's government in 2023 agreed upon concrete steps to reduce emissions from heating buildings, which is directly responsible for around 15 percent of the country’s entire CO2 output.
