Heat Transition – Heat Pump Boom Offers a Great Potential for Energy Suppliers

Press Release – Wednesday, April 12, 2023

Sales of heat pumps in Germany in 2022 increased by around 53 percent compared to the previous year. To date, only around 13 percent of energy suppliers offer their end customers a heat pump. With the foreseeable growth up to a total of 6 million heat pumps in 2030, there is great potential for utilities to advance the sector coupling in the heating sector.

Bonn. In times of permanently rising energy prices, renewable energies are currently experiencing a boom. This is also visible in the heating sector. As a result of high energy prices, and thanks to subsidies for heat pumps, there was a strong increase in heat pump sales in 2022 of around 53 percent compared to the previous year. As a result, sales have increased from 154,000 heat pumps in 2021 to 236,000 heat pumps in 2022.[1]

Despite the sharp rise in sales of heat pumps, heating in Germany is mainly based on fossil fuels: One in two households still uses gas for heating, and around 80 percent of heating energy is generated from fossil fuels.[2] The heat turnaround is intended to reduce the use of fossil fuels for the heat generation. The German Heat Pump Association (BWP) anticipates further growth: In 2023 sales of 350,000 heat pumps are expected. The German government is also focusing on heat pumps and plans to install 500,000 units annually from 2024 onwards. By 2030, the target is to achieve a total stock of six million heat pumps. This plan is reinforced by the decision that from 2024 onwards, newly installed heating systems must be powered with at least 65 percent by renewable energies.[3]

There is great potential for energy suppliers to include heat pumps in their portfolios, because currently only around 13 percent of the energy suppliers surveyed in Germany offer heat pumps to their end customers. Heat pumps that are operated in conjunction with a PV system are an efficient, economical and environmentally friendly way of generating heat. Furthermore, many energy suppliers offer heat pump owners a so-called heat current, a heating current tariff for heat pumps, which is slightly cheaper than the general electricity tariff. Around half of the energy suppliers surveyed already offer such a heating tariff. The "Energiewende Award" examines energy suppliers for their commitment and range of products and services in the heating sector.

Energiewende Award for Energy Suppliers

The most innovative energy providers will be honored with the Energiewende Award for the 7th time at the innovation platform “The smarter E Europe“, taking place on June 15, 2023. The Award is addressed to highly engaged energy suppliers, who promote and accelerate the Energiewende (Energy Transition) in the DACH region. The project initiators are the DCTI Deutsches CleanTech Institut (German CleanTech Institute), The smarter E Europe and EUPD Research. The Energy Transition Award winners from previous years are also invited to this year's award ceremony.

For further information about the Energiewende Award, visit: www.energiewende-award.de . If you have any questions, please contact Saif Islam at +49 (0) 228 504 36-20 or islam@energiewende-award.de .

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[1] https://www.waermepumpe.de/presse/news/details/branchenstudie-2023/#content
[2] https://www.bmwk.de/Redaktion/DE/Schlaglichter-der-Wirtschaftspolitik/2023/03/05-waermewende.html
[3] https://www.energie-fachberater.de/news/verbot-von-oelheizungen-und-gasheizungen-ab-2024.php

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