Europeans cool on heat pumps: Sales of alternatives to gas boilers drop across EU amid dwindling subsidies
September 27, 2024
Europeans cool on heat pumps: Sales of alternatives to gas boilers drop across EU amid dwindling subsidies
https://on.ft.com/3N0swPR
by kludgeocracy
17 comments
> In the first six months of 2024, just 765,000 heat pumps were sold across the 13 major European countries, including France, Italy, Germany and Sweden, which collectively account for 80 per cent of the market, according to the European Heat Pump Association (EHPA).
> Sales fell from 1.44mn in the same period last year, as fewer subsidies and lower gas prices lessened the incentive for households to switch away from gas boilers, the EHPA added….
> Germany had hoped to become a pioneer in the switch to the new technology but a law introduced last year to encourage people to replace their gas and oil-fired boilers with heat pumps prompted a massive public backlash and the government eventually retreated and watered down the proposals…
> Investments in heat pumps increased 75 per cent to €23bn between 2020 and 2023, according to Bloomberg NEF figures. However, spending on the sector has since cooled in large part thanks to a drop off in subsidies in countries including Germany and Italy.
Right populism works
Heat pumps are great so long as your electricity company isn’t charging you a King’s ransom for your electricity – oh fuck!
I believe it’s mostly a matter of uncertainty about the development of technology, on one side, and of regulation, on the other.
I am planning a major renovation of my house and the most problematic topic is heating and air conditioning, because no one knows what regulatory requirements will be in the next five years. Should I keep my gas boiler – installed just two years ago – and switching to a heat pump later? Should I choose floor heating? Should I keep the two fireplaces, converting them to the (currently) “green” version, or get rid of them because they will be outlawed soon?
If you run subsidies that are not continuous and long term but just throw it randomly every other year you get exactly this effect…
Subsidizing a change is good strategy only if your plan is written years ahead and kept on schedule with changes being done after the said plan run till 2 years before completion. So heat pump strategy should include at least a 5, preferably longer, years of funding written out in advance and actually kept.
I think the issue is our houses are leaky uninsulated crap rather than the heat pumps in and of themselves
Bro it costs like 30-40k for heat pump systems even rich people don’t want to buy it ofc sales are low
This is paywalled article. you should mark it like that
The problems with heat pump today are the following:
1. It is very expensive, even after subsidies 2. It forces you to have renewable energy supplier, which means higher electricity cost 3. With gas, you can just heat one or two rooms. With heat pump, you have to heat your whole place. For those who like warmer winter months, there is a limit to how warm the heat pump can transfer from the bottom of the earth 4. You really need to learn how to operate and manage the heat pump, and how to set the curve. With gas, you just turn on the switch 5. What is usually overlooked: the real problem comes when the system malfunctions. The system is really complicated, particularly if your apartment is part of a big building where all the heat pumps are connected. It may take some time for the technician to identify where the problem is, which means no heating for a few days during cold winter months. You can use the “added heating” feature, but it’s extremely expensive. 6. Ah another important point: You’ll have no instant heat so they have to be on 24/7 to keep the temperature steady, so no more only quickly heating a room for a hour or two when you get home.
It’s not so much about subsidies. It’s about electricity prices. The European pricing scheme has been an unmitigated disaster.
A massive issue with it is that countries have build renewable power plants, but didn’t marry that with energy storage facilities. So, the “online” prices are cheap, but the “offline” prices or peak prices can be ridiculous.
It’s both a policy and infrastructure issue.
If you have solar panels with a net-price scheme , then heat pumps make all the sense in the world. If you don’t, it gets complicated.
Using gas for heating is already very expensive in my country. Heat pump heating cost can be driven down close to coal levels with solar panels but it’s a huge investment with no clear benefit. No wonder it’s not selling.
Wtf I went to school to become a carpenter and all the building jobs disappeared in Sweden shortly after. Now I’m studying HVAC and this is the news I get?? Come on guys I’m soon done with school let go buy some heat pumps yeah??
Heatpumps is all the rage in norway
I want to install a heat pump. The local government as well as the HOA say I can’t.
It’s ass backwards.
Gas is a waste of energy while heat pumps are the most efficient you can imagine. Systems aren’t complicated either. You can’t just be stuck in the past like that and not be open to new technology. This isn’t even new, the concept exists for a long time and is stupid simple.
Is Sweden the only country who uses heat pumps and ground heat/mountain heat? Idk how to properly translate.
Please can the rest EU do so we don’t need to pay for higher electricity prices!,
In my country, our genius government gives subsidies for insulating older houses, but nothing if you are building new. So we have millions spent on 100 year old houses which will never be as energy efficient as new, and of course that raises prices of material and labour, so it raises costs for new builders which in turn build less energy efficient to save money…
17 comments
> In the first six months of 2024, just 765,000 heat pumps were sold across the 13 major European countries, including France, Italy, Germany and Sweden, which collectively account for 80 per cent of the market, according to the European Heat Pump Association (EHPA).
> Sales fell from 1.44mn in the same period last year, as fewer subsidies and lower gas prices lessened the incentive for households to switch away from gas boilers, the EHPA added….
> Germany had hoped to become a pioneer in the switch to the new technology but a law introduced last year to encourage people to replace their gas and oil-fired boilers with heat pumps prompted a massive public backlash and the government eventually retreated and watered down the proposals…
> Investments in heat pumps increased 75 per cent to €23bn between 2020 and 2023, according to Bloomberg NEF figures. However, spending on the sector has since cooled in large part thanks to a drop off in subsidies in countries including Germany and Italy.
Right populism works
Heat pumps are great so long as your electricity company isn’t charging you a King’s ransom for your electricity – oh fuck!
I believe it’s mostly a matter of uncertainty about the development of technology, on one side, and of regulation, on the other.
I am planning a major renovation of my house and the most problematic topic is heating and air conditioning, because no one knows what regulatory requirements will be in the next five years. Should I keep my gas boiler – installed just two years ago – and switching to a heat pump later? Should I choose floor heating? Should I keep the two fireplaces, converting them to the (currently) “green” version, or get rid of them because they will be outlawed soon?
If you run subsidies that are not continuous and long term but just throw it randomly every other year you get exactly this effect…
Subsidizing a change is good strategy only if your plan is written years ahead and kept on schedule with changes being done after the said plan run till 2 years before completion. So heat pump strategy should include at least a 5, preferably longer, years of funding written out in advance and actually kept.
I think the issue is our houses are leaky uninsulated crap rather than the heat pumps in and of themselves
Bro it costs like 30-40k for heat pump systems even rich people don’t want to buy it ofc sales are low
This is paywalled article. you should mark it like that
The problems with heat pump today are the following:
1. It is very expensive, even after subsidies
2. It forces you to have renewable energy supplier, which means higher electricity cost
3. With gas, you can just heat one or two rooms. With heat pump, you have to heat your whole place. For those who like warmer winter months, there is a limit to how warm the heat pump can transfer from the bottom of the earth
4. You really need to learn how to operate and manage the heat pump, and how to set the curve. With gas, you just turn on the switch
5. What is usually overlooked: the real problem comes when the system malfunctions. The system is really complicated, particularly if your apartment is part of a big building where all the heat pumps are connected. It may take some time for the technician to identify where the problem is, which means no heating for a few days during cold winter months. You can use the “added heating” feature, but it’s extremely expensive.
6. Ah another important point: You’ll have no instant heat so they have to be on 24/7 to keep the temperature steady, so no more only quickly heating a room for a hour or two when you get home.
It’s not so much about subsidies. It’s about electricity prices. The European pricing scheme has been an unmitigated disaster.
A massive issue with it is that countries have build renewable power plants, but didn’t marry that with energy storage facilities. So, the “online” prices are cheap, but the “offline” prices or peak prices can be ridiculous.
It’s both a policy and infrastructure issue.
If you have solar panels with a net-price scheme , then heat pumps make all the sense in the world. If you don’t, it gets complicated.
Using gas for heating is already very expensive in my country. Heat pump heating cost can be driven down close to coal levels with solar panels but it’s a huge investment with no clear benefit. No wonder it’s not selling.
Wtf I went to school to become a carpenter and all the building jobs disappeared in Sweden shortly after. Now I’m studying HVAC and this is the news I get?? Come on guys I’m soon done with school let go buy some heat pumps yeah??
Heatpumps is all the rage in norway
I want to install a heat pump. The local government as well as the HOA say I can’t.
It’s ass backwards.
Gas is a waste of energy while heat pumps are the most efficient you can imagine. Systems aren’t complicated either. You can’t just be stuck in the past like that and not be open to new technology. This isn’t even new, the concept exists for a long time and is stupid simple.
Is Sweden the only country who uses heat pumps and ground heat/mountain heat? Idk how to properly translate.
Please can the rest EU do so we don’t need to pay for higher electricity prices!,
In my country, our genius government gives subsidies for insulating older houses, but nothing if you are building new. So we have millions spent on 100 year old houses which will never be as energy efficient as new, and of course that raises prices of material and labour, so it raises costs for new builders which in turn build less energy efficient to save money…