Homeowners in Germany are less inclined to renovate their homes for energy efficiency, as indicated by a significant drop in heat pump subsidy applications and a survey revealing that two-thirds of homeowners are reluctant to undertake such renovations.
The hesitancy among homeowners can be attributed to various factors. Firstly, the ongoing controversy surrounding the 2023 Building Energy Act, also known as GEG, is causing uncertainty and apprehension. The proposed phasing out of fossil fuel heating systems has left many purchasers and installers of heat pumps doubtful and hesitant.
Secondly, there's a lack of awareness regarding the existing support programs for energy-efficient renovations. This lack of knowledge has resulted in subpar business figures in the heat pump market, despite a surge in interest upon the CDU's announcement of potentially repealing the law.
Financial constraints also play a role. The high costs of heat pump installations have proven to be a significant barrier, even with the surge in demand caused by the CDU's plans.
Moreover, Germany's renovation rate is below the required level, and public trust in the government's ability to effectively manage the transition to climate-friendly heating has faded. This lack of trust and the perceived complexity of the transition process have deterred many homeowners from implementing energy-efficient renovations.
Lastly, the absence of reliable planning security and a stable political framework has contributed to the decline in interest. Homeowners and installers need clear guidelines and long-term support to invest in eco-friendly technologies.
These factors combined have resulted in a notable decrease in the number of German homeowners expressing interest in energy-efficient renovations, as demonstrated by the decrease in heat pump subsidy applications and the survey indicating that two-thirds of homeowners are unwilling to renovate.
[1] Berk, Y. (2024). The Impact of the Building Energy Act on Germany's Heating Market.
[2] Energy Efficiency for All (2024). A Study on Heat Pump Adoption in Germany.
[4] German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (2023). Press Release: 2023 Building Energy Act (GEG) Introduced.
[5] European Commission (2022). Energy Efficiency Market Report: Germany.
