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Heat Pumps Gain Ground in Germany as Hidden Costs and Subsidy Questions Persist

Consumer advisers urge detailed offers to avoid “bauseits” exclusions that shift expensive work outside the quote.

Overview

  • In the first half of 2025, heat pump sales surpassed gas condensing boilers, with the industry forecasting 280,000 to 290,000 units for the year.
  • Consumer watchdogs reviewing offers found total prices ranging from about €29,000 to €62,000, with some samples spanning €20,200 to €63,000, and warn that “bauseits” items like foundations or electrical work can add five-figure sums.
  • KfW grants currently cover up to 70% of costs with a €30,000 cap, though coalition disagreements signal possible changes next year, and applicants who file now typically retain today’s terms with up to two years to complete work.
  • An RWTH Aachen/Octopus study reports a typical 8 kW system costing about €28,000 in Germany versus €14,000 in the UK, with higher standards, planning effort, meter-cabinet upgrades, and Germany’s 19% VAT cited as cost drivers.
  • Operating analyses show heat pumps have been the cheapest to run since 2022, and recent tests found units can heat moderately insulated older homes, though model-to-model electricity costs differ by several hundred euros per year and insulation quality remains crucial.