Soaring Trend of Heat Pumps Acting as Main Heating Solutions
Heat pumps are taking over as the go-to heating solution in Germany's new residential buildings, and it's a steep climb from just a decade ago. According to Destatis, a staggering 69.4% of the 76,100 new residential buildings completed in 2024 relied on heat pumps for their primary energy source - an increase of around 5 percentage points from the previous year.
The majority of these heat pumps are used in single and two-family houses (74.1%), with their use in multi-family houses less common (45.9%). Renewable energy sources, which heat pumps contribute to, are now the primary energy source for heating in an impressive 73.9% of the residential buildings finished in 2024, more than double the 2014 rate of 38.5%.
Heat pumps aren't the only renewable energy option for heating. Others include wood (pellet heating systems, fireplace inserts, with a share of 3.6% as primary heating energy source in 2024), solar thermal energy (0.5%), biogas/bio-methane (0.2%), and other biomass (0.2%). Yet, renewable energies are used in heating for four out of five new residential buildings (82.3%), confirming the trend towards greener energy solutions.
In contrast, gas heating systems, once dominating the scene, have dramatically diminished in the past ten years. In 2024, they only accounted for 15.0% of new buildings, down from 50.7% in 2014. District heating and oil heating systems follow with 8.5% and 0.3%, respectively.
The rising popularity of renewable energy isn't confined to new buildings. In the planning of new residential buildings, an impressive 84.8% are intended for heating with renewable energy. Heat pumps, which will make up 81.0% of these newly planned buildings, are set to become even more prevalent. Natural gas, previously a common conventional energy carrier, now plays a diminishing role, with a share of just 3.7%.
This discernible pattern echoes in existing buildings too, with natural gas being the dominant primary energy carrier in more than half (53.9%) of the buildings with residential space. In contrast, renewable energy sources for heating currently play a subordinate role but are steadily gaining ground (10.2%).
However, the production of heat pumps has significantly decreased in 2024, reaching the lowest level in the past six years. This decline can be attributed to a number of factors, including market saturation, economic and technological challenges, global market trends, and government policies. Despite the drop in production, the optimism surrounding future applications for subsidies points towards potential recovery in the market. And that's the heat on renewable energy!
- The increase in the use of heat pumps in Germany's residential buildings has resulted in a significant shift towards environmental-science-based solutions, such as renewable energy sources for heating.
- The industry has witnessed a marked decline in the adoption of gas heating systems, particularly in new residential buildings, as more attention is being paid to climate-change mitigation through renewable energy and technology advancements.
- Beyond heat pumps, other renewable energy options for heating include solar energy, biomass, and biogases, although heat pumps are poised to dominate due to their growing prevalence in newly planned buildings.
- In the world of finance, the renewable energy sector shows promise for future growth, with subsidies potentially playing a key role in salvaging a declining heat pump production market and stimulating its upward trajectory.
