Overview

• The first quarter of 2025 saw gas heating sales drop by 48% and oil heating sales plummet by 81%, according to the BDH, reflecting the impact of Germany’s renewable heating mandate.
• Heat pump installations rose by 35% to 62,000 units, a significant increase but well below the annual target of 500,000 set by policymakers.
• High installation costs, averaging €30,000 per system, and frequent changes to subsidy and legal frameworks are causing hesitation among homeowners to transition to renewable heating options.
• Studies highlight hybrid systems—combining gas or oil heating with photovoltaics or heat pumps—and green fuel-ready appliances as viable solutions to meet the 65% renewable energy requirement under the Gebäudeenergiegesetz (GEG).
• Technical insights emphasize that heat pump longevity, averaging 20 years, depends on proper design and limiting compressor start-stop cycles, underscoring the need for professional installation and maintenance.