Heat Pumps on the Rise: Over 69% of New German Buildings to be Heated by 2024
Most contemporary structures in Germany primarily rely on heat pumps for their heating needs.
Germany's burgeoning love affair with renewable energy is evident in the country's building sector. In 2024, a staggering two-thirds of residential buildings under construction will be equipped with heat pumps - that's a 5% increase from the previous year, according to the German Federal Statistical Office.
Single and two-family homes will see the most significant shift, with 74.1% of newly built properties using heat pumps as the primary heating source. Multi-family homes are not far behind, with 45.9% of new constructions relying on these energy-efficient devices.
Heat pumps, primarily ground and air heat pumps, are increasingly popular due to their ability to harness renewable energy. Other sustainable options like wood, pellet heating, fireplaces, and solar thermal energy are also on the rise. These renewable energy sources power 73.9% of newly built residential properties in 2024, more than double the figure from 2014.
While natural gas still holds the second spot as a primary heating source for new buildings in 2024 (15.0%), its prevalence has drastically decreased from the 50.7% it held in 2014.
Existing buildings have a different story to tell. On May 15, 2022, over half (53.9%) of existing residential properties were conventionally heated with gas. Renewable energy somehow plays a minor role in warming these legacy buildings, accounting for just 10.2%. Despite this, the trend towards renewable heating in new residential properties is clear, with approximately 84.8% of the roughly 54,800 residential buildings approved in 2024 slated to rely primarily on these sustainable alternatives.
Among these, heat pumps will be the primary choice. However, production numbers for heat pumps have seen a significant dip in recent years, reaching a six-year low in 2024 (162,400 units produced), a decrease of 59.4% compared to the year before.
Germany's leadership in the European heat pump market is boosted by ambitious climate goals and supportive policies, like the Renewable Energies Heat Act (EWärmeG), which mandates the use of renewable heating in new constructions. The country accounted for 25.2% of the total regional revenue in the Europe air to water heat pump market in 2023, with the European market experiencing a 25% year-over-year demand surge that same year. The market is expected to exceed €15 billion in 2024, with a focus on low-temperature efficiency and smart controls.
However, challenges remain, such as a shortage of skilled heat pump installers and high upfront costs. Regardless, the signs point towards a green future for German heating, one heat pump at a time.
In light of Germany's commitment to renewable energy, the community policy, such as the Renewable Energies Heat Act (EWärmeG), is encouraging vocational training to increase the number of skilled heat pump installers, overcoming the current workforce shortage in this industry. To ensure financial sustainability, the focus is on reducing the high upfront costs of heat pumps through optimization of production and adoption of smart controls, aiming to expand the renewable-energy sector and promote energy-efficient vocational training opportunities within the industry.
