Subsidies for domestic heat pumps in Europe
As the cost of investing in low carbon emission HVAC systems remains high, a need has emerged for governments to provide subsidies for domestic heat pumps. This issue is explored in a report released by the European Heat Pump Association (EHPA), examining the various kinds of financial support available to families in different member states.
The report focuses on domestic air and ground source heat pumps in particular, as well as hybrid pumps and those used for heating water. The EHPA only gathered its data in the United Kingdom, Norway, Switzerland and certain other EU nations, while countries like Bulgaria, Estonia, Cyprus, Greece, Romania, Malta, Slovenia, Luxembourg and Latvia were not included, either because they have a smaller market or their national heat pump scheme is currently suspended.
What heat pump subsidies are currently available in the various member states?
Austria offers a grant for air and ground heat pumps installed in new buildings covering up to 20% of the price. The maximum amount available is 7,500 euros (8,075 dollars) if the heat pump’s Global Warming Potential (GWP) is between 1,500 and 2000. For retrofit installations, the grant covers up to 33% of the cost, for a maximum of 5000 euros. The grant has been available since 3rd January 2023 and will continue until 31st December 2024.
In Belgium, subsidies are only available for retrofit installations and the amount varies considerably according to the region and the heat pump’s technical specs. In Flanders for example, ground source heat pumps are eligible for a grant of between 4000 and 6400 euros, while in Brussels a grant of up to 4,750 euros is available for air source heat pumps.
In Croatia, financial support is available once or twice a year for projects including retrofit pumps, with a maximum available sum of 4,250 euros and up to 40% of the cost of water heating pumps and air and ground source pumps. The subsidy is greater in the poorer regions and the grant includes installation costsand extra components.
In France, anyone purchasing a ground source heat pump for an existing property can obtain a state contribution of up to 15000 euros and up to 9000 euros for air source heat pumps. The scheme, launched in 2020, is available until 2024. In Germany, air source heat pumps for retrofit installations are eligible for up to 15000 euros or up to 18000 euros depending on the model, until 2030.
Italy has three tax deductible schemes for renovation projects, which cover between 50% and 110% of heat pump costs, while the Netherlands offers subsidies for retrofit installations of up to 3750 euros for air source heat pumps, 5100 euros for ground source ones and 3000 euros for hybrid pumps. In 2023, the subsidies were extended to systems with a heating capacity of over 70 kW up to a maximum of 400 kW.
Norway is making incentives available only for ground source heat pumps, up to 1000 euros whether in new buildings or fitted during renovation projects, while Spain is offering a grant for buildings connected to district heating plants exclusively powered by heat pumps. (The grant is 2,070 euros per kW and covers up to 70% of the cost of investments into new buildings in not-for-profit energy communities.)
Five Swiss cantons (counties) have implemented a range of incentive schemes, with grants of up to 22,320 euros for the replacement of electric boilers with a ground source heat pump as part of renovation work in Vaud, up to 3,043 euros for an air source heat pump in a new detached home in Geneva. Finally, the United Kingdom is offering grants of 5000 pounds (5,804 euros) for air source heat pumps and 6000 pounds (6916 euros) for ground source heat pumps, whether in new buildings or as part of renovation work.
Translated by Joanne Beckwith
