Overview

• Installations rebounded by 35 percent in the first quarter of 2025 to about 62,000 units, up from a 2024 slump of 193,000 sales but still far below the 500,000-unit annual target.
• A survey of 700 German homeowners by Appinio found that 34 percent would choose a heat pump today, making it the most preferred replacement over gas, hybrid and oil systems.
• The federal BEG program covers up to 70 percent of heat pump installation costs (capped at €21,000), yet many buyers cite high upfront expenses and opaque pricing as deterrents.
• An electricity tax cut for households operating heat pumps has been postponed and planned revisions to subsidy frameworks and building energy rules are prompting consumer caution.
• Starting next year, the gas storage levy will be financed from the Climate and Transformation Fund to ease costs for gas customers as part of broader energy transition support.