New incentive round for electric heat pumps in Denmark


The Danish Energy Agency has launched today a new DKK44.6 million ($7 million) subsidy round to support the installation of commercial scale electric heat pumps.

The scheme is open to companies specializing in district heating and offers rebates covering up to 15% of the total investment made to buy and install the heat pump, with developers being eligible for a maximum of DKK5 million for each project.

All selected projects will have to be completed within three years and be electrically powered. The agency also said the heat source must come from renewable energy or surplus heat, and that 50% of the heat production may be based on coal, oil or natural gas. “The target group is district heating developers with a high share of heat production based on coal, oil or natural gas,” it further explained. “The heat pump projects will help to displace the use of coal, oil and natural gas in the Danish district heating sector by replacing it with a more climate-friendly solution, in the form of electric heat pumps.”

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Interested companies will have time until October 31 to send their applications.

In March, Danish gas transmission system operator Evida exempted homeowners and individuals that want to abandon gas and choose renewable energy for heating, from paying the grid disconnection fee. The scheme is being run on a first-come, first-served basis. The applicants of this scheme are also entitled to request additional funds for the installation of a heat pump or leasing of a heating system if they cannot afford the upfront costs for buying one. Furthermore, funds will be awarded if individual oil and gas boilers are converted to district heating.

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