Space Heating Heat Pumps 2025 in Germany: Sales Rise by 55 Percent - Industry Demands Clear Rules in the Building Energy Act
Berlin (Germany) - The heat pump industry is recording a significant increase in sales in 2025. Almost half of all heat generators sold are heat pumps, meaning the technology is gaining substantial ground in Germany and has reached an important milestone. Future development will depend heavily on political framework conditions.
Heat pump sales boom: almost every second heat generator sold is now a heat pump
The German heat pump industry experienced significant growth in 2025: 299,000 heating heat pumps were sold – an increase of 55 percent compared with the previous year. For the first time, almost half of all heat generators sold in Germany are heat pumps. The German Heat Pump Association (BWP) attributes this success mainly to growing confidence in the technology.
Dr. Martin Sabel, Managing Director of the BWP, emphasizes: “After two years in which the topic of heating was politically highly polarized, we now see that heat pumps primarily convince through performance.” In addition, consumers increasingly associate burning gas and oil with “price risks, supply uncertainties and negative impacts on the climate.”
For the industry, it is clear that demand is not growing solely because of technological conviction, but also because of the expectation that heat pumps will remain the economically and politically most reliable option in the long term.
Subsidy statistics show: investments in existing buildings drive the market
In parallel with the sales growth, the importance of subsidies also increased significantly: according to official statistics, over 288,000 subsidy approvals for heat pumps were issued for 2025 – an increase of 91 percent compared with the previous year. The BWP sees this as clear confirmation of the subsidy regime, which rewards investments in outdated heating systems and triggers local value creation in industry and skilled trades.
Sabel explains: “Consumers have taken up the current subsidy regime very well. It rewards investments and thus triggers local value creation in the medium-sized heating industry and local skilled trades.”
The majority of demand comes from existing buildings: “KfW heating subsidies are only granted for existing buildings, where now almost 80 percent of heat pump sales are achieved,” Sabel continues. These figures therefore counter frequently expressed prejudices that heat pumps are only useful in new buildings or specific building types.
Political framework conditions decide the growth path
For the industry, the next growth step is closely linked to political decisions – especially the upcoming revision of the Building Energy Act (GEG). The BWP warns that a new law could become a brake on investment if completely different rules suddenly apply and signals in favor of fossil fuels are sent again.
Sabel calls for clear signals to activate the market and a “reliable path toward energy sovereignty and climate neutrality,” stressing: “It is true that the heating market is not yet tapping its potential because many homeowners are waiting for political decisions before installing a new heating system.”
Municipal heat planning is also seen as a complementary orientation, but according to the BWP it is not sufficient on its own: “The statements in municipal heat plans regarding gas and district heating networks are often vague and, above all, non-binding. Without clear orientation through the GEG, they do not form a reliable basis for investment.”
Market structure: air-to-water heat pumps clearly the most important technology
The dominant technology is the air-to-water heat pump, with a share of 95 percent, while ground-source heat pumps reach 5 percent with 16,000 systems. In addition to heating heat pumps, 49,500 hot-water heat pumps were sold, which are used exclusively to heat drinking water. This segment recorded growth of 20 percent compared with the previous year.
Source: IWR Online, 30 Jan 2026
