Wave of new, renewed, and extended incentives to improve heat pump prospects in Europe

Published: Tue 09 Feb 2016
A blog entry by Lukas Bergmann

Contributed by:

Lukas Bergmann
Senior Analyst
Delta Energy & Environment

Lukas Bergmann's Blog

With renewable heat moving ever higher up the political agenda in Europe, heat pumps look to be benefiting already

Across Europe’s five largest heating markets (where almost 5 million heating systems, equivalent to more than 60% of the European total, are sold annually), there is a wave of renewed and extended support measures that look likely to improve the prospects for heat pumps.

The measures are expected to improve the heat pump proposition in these market by raising awareness and market confidence in the products and/or help to overcome cost barriers.

Here's a quick roundup of the key changes identified by Delta-ee's Heat Pump Research Service:

Netherlands: With high penetration of the gas network and prevalence of gas boilers, this has not been traditionally seen as a premier market for heat pumps. But a renewed commitment to renewable heating from the Government will mean increased taxes and levies on gas and corresponding decreases for electricity. A new subsidy has also appeared, worth between 20-40% of the upfront cost.

Italy: The tax reduction scheme for which heat pumps qualify has been extended for another year, as has a special discount heat pump energy tariff. There will also be a welcome increase and simplification of the Conto Termico subsidy this year.

UK: The domestic Renewable Heat Incentive (RHI) scheme has been extended to March 2021, with reforms planned for 2017 that will try and address some of the issues of the scheme which led to its currently less than impressive take up.

Germany: For the second time in a year, its market incentive programme has been increased, in a bid to compensate for the failure to agree a tax credit based subsidy at the start of last year.

France: The French tax credit for heat pumps will be maintained at the current level of 30% of the upfront cost until the end of 2016.

As you can see, this paints a positive picture of heat pumps moving back into the focus of governments as the ‘heat’ agenda gathers pace at the policy level.  

To find out more about the impact of these policies on key markets, see our Heat Pump Research Service for in depth country market analysis and forecasts. To enquire about a subscription please contact Lukas Bergmann (lukas.bergmann@delta-ee.com) or Scott Bryant (scott.bryant@delta-ee.com)