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The majority of newly constructed buildings in Germany utilize heat pumps for their residential heating needs.

Shift Toward Renewable Energy Sources

Newly developed neighborhoods often feature the installation of heat pumps.
Newly developed neighborhoods often feature the installation of heat pumps.

Soaring Adoption of Heat Pumps for Residential Heating in Germany (2014-2024)

The majority of newly constructed buildings in Germany utilize heat pumps for their residential heating needs.

Swing­ing ever more towards renewable energy, over two-thirds (69.4%) of single- and multi-family residences constructed in Germany in 2024 will be equipped with heat pumps, a significant leap from 2023's 64.6%.

At a glace:

  • 69.4% of single- and two-family houses depend on heat pumps for heating (2024)
  • 45.9% of multi-family houses rely on heat pumps for heating (2024)
  • In a decade, the number of residential buildings heated by renewable sources has nearly doubled (73.9% in 2024, 38.5% in 2014)

A sizable portion of these new buildings is primarily relying on eco-friendly resources such as ground and air heat pumps, solar thermal energy, and biomass (wood pellet heating, fireplaces). In the span of ten years, renewable energy's contribution to the country's heating infrastructure has noticeably increased.

Gas heating, previously standing at 50.7% in 2014, now plays a marginal role (15.0%) in 2024, with heat pumps taking the front seat. However, in the case of existing buildings, gas heating continues to dominate, with 53.9% of dwellings still depending on the conventional energy source. Nonetheless, renewable energy's presence in the residential heating sector shows promise, accounting for 10.2% of the existing buildings heated sustainably.

When it comes to newly approved residential building plans, around 84.8% are set to embrace renewable heating solutions, primarily heat pumps. Despite the recent decrease in heat pump production numbers, reaching 162,400 in 2024 - the lowest in the last six years - the industry foresees a massive recovery in 2025 with production projected to reach roughly 257,000 units, a 33% rise compared to 2024.

The steady growth of heat pumps in Germany's residential sector is bolstered by government initiatives like the Federal Funding for Efficient Buildings (BEG) program, which has granted over 151,000 funding applications supporting heat pump installation. The heat pump market, a significant contributor to Germany's HVAC industry, is poised for growth due to a heightened emphasis on energy efficiency and sustainability.

[1] https://www.ntv.de/politik/wirtschaftskorrespondenz/Klimaschutz-Bundestag-Strompreise-Flugsteuerung-article25338818.html[2] https://www.destatis.de/DE/Themen/Bauen-und-Wohnen/Bauwirtschaft/Wohnungsbau/Lauter-Wohnsitz-Warmwasser/Zeitreihen/Tables.html[3] https://www.destatis.de/DE/Themen/Bauen-und-Wohnen/Bauwirtschaft/Wohnungsbau/Lauter-Wohnsitz-Warmwasser.html[4] https://www.renewableheat.eu/our-achievements/more-facts-about-heat-pumps/[5] https://www.greenbiz.com/article/germany-unveils-70-billion-plan-improve-energy-efficiency-homes

  1. To meet the growing demand for eco-friendly solutions in the residential sector, it would be beneficial for the community policy to provide further funding for vocational training programs focused on renewable-energy technologies, such as heat pumps, in order to strengthen the industry's workforce and foster continued growth.
  2. In alignment with the country's emphasis on energy efficiency and sustainability, it's essential for financial institutions to invest in the development and production of renewable-energy technologies like heat pumps, which will not only drive innovation within the HVAC industry but also bolster Germany's efforts to lessen its carbon footprint and transition towards a greener future.

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