European countries have been adjusting or tightening their heat pump subsidy schemes over the last two years, according to the European Heat Pump Association (EHPA).
The association has updated its guide to residential heat pump subsidies available across Europe, last published in 2023.
EHPA says the overall trend of its findings highlights a pattern of rationalization and increased control of public spending, rather than large-scale expansion of subsidies. It adds that there is a clear shift emerging towards targeted aid, with a growing focus on low-income households, as seen in countries including France and Germany. In other cases, such as in Poland, eligibility is linked to energy performance or approved equipment lists.
In some EU countries, grant levels are being reduced and programmes are ending. Italy’s grant and loan scheme Efficienza residenziale pubblica is due to wrap up at the end of this year, as is Austria’s Sauber Heizen für Alle grant scheme and Spain’s income tax deductions for energy efficiency improvements.
Other programmes have been temporarily suspended, such as Brussels’ grant scheme, while the Belgian region forms a new government, while some schemes elsewhere have faced delays or restructuring as a result of political transition or fiscal constraints.
Milagros Garcia, EHPA policy officer, referred to the findings as “self-defeating moves”. “They disempower citizens from investing in a sector which primarily manufactures in Europe, producing clean technology that boosts Europe’s energy independence and path to decarbonization,” Garcia said.
In response, EHPA has reaffirmed its calls for clear, long-term subsidy schemes and supportive policies, advising they boost investor, manufacturer and consumer confidence in heat pumps, in turn allowing the sector to deliver for Europe.
In February, EHPA said sales of heat pumps across the 13 main European markets, which make up around 85% of the continent's total market, fell by an average of 23% year-on-year in 2024.
In July, Berlin-based cleantech advisory firm Apricum released a white paper explaining that customers in Europe’s heat pump market are facing a complex and fragmented installation process.
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