Power2People Follow Up Report: Heat Pumps

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  • Electric heat pumps serve as a critical vehicle for empowering end-consumers to participate in the energy transition.
  • On average, European households save 39% on their bills when switching from fossil fuel-powered heating systems to electric heat pumps.
  • Electric heat pumps provide an up to 400% efficiency gain over comparable gas boilers when installed in properly insulated homes.
  • The flexibility of heat pump technology allows for their use in a variety of household settings, including in multifamily homes, or as part of district heating and cooling systems
  • A major barrier to the rapid uptake of heat pumps across the Union is a combination of high up-front cost and lack of available subsidies at the national level. These subsidies are often exhausted early into the fiscal year due to high demand, leaving many consumers unable to take advantage of them and likely to replace old boilers with less expensive fossil fuel-driven models.
  • Other key barriers slowing down the adoption of heat pumps include a lack of awareness and familiarity with the technology or the available programs to help offset the upfront cost, a lack of properly skilled installers, and a misunderstanding about the home infrastructure needed to support heat pumps.
  • In order to correct the incentive structure and align it with the EU’s climate ambitions, subsidy schemes in Member States for fossil fuel-powered heating systems should be converted into support schemes for heat pumps, either through direct financing, tax reductions, or state-funded upskilling programs.

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