Heat pumps have long since arrived in new German buildings – but their triumph raises questions and imbalances. Who is using it and why shows how deeply the energy transition is affecting building construction.

Heat pump: The new standard in new buildings

According to the Federal Statistical Office, heat pumps were installed as the primary heating source in 69.4 percent of the approximately 76,100 new residential buildings in 2024 – an increase of around five percentage points compared to 2023. The trend is particularly clear in single- and two-family houses (74.1 percent), while multi-family houses are slightly behind at 45.9 percent.

There is a political framework behind this: Since January 2024, the new Building Energy Act has required at least 65 percent renewable heating energy in new buildings. Thanks to extensive funding – in some cases up to 70 percent subsidies – demand is also increasing, as analyzes by Geomap show: climate-friendly heating rates continue to increase.

Slump in production and market uncertainties

Despite strong demand, heat pump production fell to just 162,400 units in 2024 – a decline of 59 percent compared to 2023. Exports also shrank significantly. Nevertheless, a sales increase of 35 percent was recorded in the first quarter of 2025, albeit from a low level (approx. 62,000 devices).

Since the industry invested additionally in capacity last year, surplus stocks and personnel arose, reports the BWP. According to industry reports, the causes are political uncertainty, slow municipal heating plans and a lack of skilled workers. However, the IEA predicts sales growth of around 30 percent for 2025.

Challenges in existing buildings

Fossil heating systems continue to dominate existing buildings: 54 percent of buildings heat with gas or oil; Renewable heating technologies are only used in around ten percent. Ambitious goals remain expanded: The ZVSHK reports around 200,000 installed heat pumps for 2024 – far from the target of 500,000 per year.

The main problems in old buildings are high modernization costs, bureaucratic obstacles and unclear repayment mechanisms. Experts emphasize that energy-saving renovation coupled with the installation of heat pumps must be a core strategy in order to achieve the climate goals in the building sector. In addition, rising interest rates mean obstacles in the financing process.

Efficiency, costs & network integration

Heat pumps are considered particularly efficient – studies by the IEA confirm that they reduce heating costs in the long term by around 28 percent compared to gas. However, they require a stable power supply: a clean energy mix and low tariffs are a prerequisite.

In addition, the pressure on existing power grids is increasing. There are models that combine heat pumps with solar power and buffer storage; Studies show that this combination can significantly reduce network loads. Under the heading of “load management,” heat pumps could even function as flexible network support in the future.

D. Maier / editorial team finanzen.net

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