Overview
- BAFA and KfW updated the BEG guidance to require certain heat pumps to support a specific interoperable data format from the Code of Conduct for Energy Smart Appliances, a rule that takes effect on 1 July 2027.
- Industry groups say the required interoperable format is not yet implemented at scale and warn many mass‑market devices and home energy management systems could fail the new funding test unless deadlines or transitional rules are changed.
- Separate, already effective rules under Paragraph 14a EnWG treat heat pumps above 4.2 kW as controllable and require smart meters, and the BEG guidance now requires applicants to order their smart meter themselves to qualify for subsidies.
- The market remains strong with industry estimates of roughly 55–60% market share and about 400,000 units sold this year, yet reporting shows subsidy demand may exceed current allocations by an estimated €1.1 billion for 2027–2029.
- Researchers recommend broader financing options to help low‑income owner‑occupiers, pointing to a French-style bundled monthly payment model as the most promising way to make heat‑pump retrofits affordable.