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The European heat pump sector is experiencing contrasting trends in 2025, with the UK emerging as a growth leader while Germany and France face sales declines due to shifting policies and economic uncertainties.
Germany, once a booming market, saw heat pump sales plunge 48% in 2024, reversing a 59% surge in 2023. The drop is linked to delays in subsidy approvals and uncertainty over the Building Energy Act. With political parties divided on heating regulations, the outlook remains unclear.
In France, heat pump sales fell 24% in 2024 as the government cut key subsidies like MaPrimeRénov’. Restrictions on hybrid heat pump incentives and reduced funding for home energy renovations have led to consumer hesitation, a trend expected to persist in 2025.
In contrast, the UK is defying the downturn. Sales surged 63% in 2024, driven by increased government incentives, including a higher Boiler Upgrade Scheme grant of £7,500 per installation and zero-interest loans. Despite this growth, the UK’s ambitious goal of 600,000 annual installations by 2028 requires a significant acceleration from the 99,000 units installed in 2024.
Across Europe, heat pump sales dropped an average of 23% in 2024, highlighting the sector’s dependence on policy stability and financial support. While governments remain committed to decarbonization, political shifts and subsidy reductions are shaping short-term market dynamics.
Experts emphasize that clear, stable incentives are crucial for consumer confidence and long-term adoption. The UK's success underscores the power of well-structured incentives, while Germany and France demonstrate the risks of regulatory uncertainty. Despite current headwinds, heat pumps remain central to Europe’s net-zero transition.
