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Traffic light will miss heat pump target by a wide margin

Only oil heating sales increase

The gas meter will remain in many German households for years to come.
The gas meter will remain in many German households for years to come.

Traffic light will miss heat pump target by a wide margin

With the Heating Law, the Federal Ministry of Economics aims to signal the end of fossil heating systems in Germany. However, instead of a well-planned energy transition, there is only dispute within the traffic light coalition. The result is disappointing: instead of heat pumps, many are turning back to oil heating again.

The demand for new heating systems in Germany has further decreased. According to the German Heating Industry Association (BDH), sales dropped to 325,000 units in the first five months of the year. Compared to the previous year, this represents a decrease of 39%.

The decline was particularly noticeable in heat pumps. The number of sold units halved within a year to only 74,000 (minus 52%). Gas heating (minus 35%) and pellet heating (minus 81%) were also significantly less popular. However, there was an increase of 24% in oil heating systems, with 47,500 units sold. Oil heating systems still account for seventeen percent of the market.

The association attributed the development to the discussions about the Heating Law of the traffic light coalition. "The debate about the Building Energy Law of the traffic light coalition is having an effect," explains BDH managing director Markus Staudt in the statement. "The uncertainty about heating modernization is still great." Furthermore, according to the association, there is still too little information available about which technical solutions and incentives the law allows and provides.

The goal will be clearly missed

The goal of the German government, that in Germany a total of 500,000 heat pumps should be installed annually from this year on, will probably be missed significantly based on these numbers: The association only forecasts a sales volume of 200,000 heat pumps by the end of the year.

BDH managing director Staudt criticizes that companies have invested billions due to the plans to build additional production capacities for heat pumps. He demands that the traffic light coalition acts "as soon as possible": "Consumers now need clear information about the current framework conditions", it says in the statement. "Only then can the uncertainty be reduced and trust in heating modernization be regained."

Despite the government's aim to promote heat pumps under the Heating Law, the ongoing disputes in the traffic light coalition have led to a decrease in their sales. As a result, many are resorting to oil heating again, contributing to a 24% increase in oil heating system sales. This trend is causing concern for the German Heating Industry Association (BDH), as they foresee a significant miss of the government's goal to install 500,000 heat pumps annually. To address this issue, BDH's managing director, Markus Staudt, has called for clear information and prompt action from the traffic light coalition to reduce consumer uncertainty and revive trust in heating modernization.

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