Overview

• Heat-pump sales in Germany rose by 35% in Q1 2025 compared to the same period last year, reaching 62,000 units, signaling a recovery after a sharp decline in 2024.
• The Bundesverband Wärmepumpe projects total sales of 260,000 units for 2025, far below the 2022 target of 500,000 annual installations set by industry leaders and Robert Habeck.
• State heating subsidies, now fully established, are credited as the primary driver behind the renewed demand for heat pumps.
• The incoming Union-SPD government plans to abolish the current Gebäudeenergiegesetz (GEG) and introduce a simpler, technology-neutral framework while continuing financial support for renewable heating systems.
• Industry representatives warn that swift regulatory reforms are crucial to avoid market uncertainty and to align with EU climate targets and Germany's 2045 neutrality goals.