Despite a slump in the heating market, heat pumps are increasing their market share
Linz/Wels (OTS) – The record year for renewables in 2022 will be followed by the collapse of the heating market in 2023.
The energy price fluctuations and supply uncertainties associated with the war of aggression in Ukraine heralded a turnaround in the Austrian heating market in 2022: for the first time, more renewable heating systems were installed than fossil fuel systems. Despite declining construction activity, total heating sales rose to over 110,000 units in 2022 (excluding piped district heating). Falling energy prices, sharp increases in construction prices and interest rates and the announcement of higher subsidies from 2024 led to a drastic decline in the heating market by around 25,000 units in 2023.
“The sharp increase and the immediately following slump in mid-2023 are not only difficult for the heating industry to cope with. Installation and commercial companies also face major challenges. The necessary planning security is missing,” emphasizes Association President Freimüller.
Renewable heat package: Announcement of higher subsidies will lead to the abrupt end of the heating replacement in 2023
Catch-up effects from 2022 dominated the stable sales in the first half of 2023. The failure of the Renewable Heat Act in its original form, with clear timescales for phasing out fossil heating systems, together with the media reassurance about Austria’s security of supply, is leading to a sharp market decline in the second half Half year 2023.
The federal government’s announcement of significantly higher funding for switching heating to renewables from 2024 with up to 75% of the investment costs brought the heating market to a standstill.
“Full gas storage facilities and falling energy prices provide a false sense of security. Waiting and doing nothing is the wrong thing, because climate change and its consequences can only be stopped by quickly phasing out fossil energy systems,” emphasizes Freimüller.
No end in sight: Declining new construction is hitting the heat pump industry hard
In the past three years, new construction activity of 32,000 newly constructed buildings fell by more than 50% – and the trend is continuing to fall. The decline is particularly pronounced in the area of single- and two-family buildings. Due to the particularly high market share of heat pump systems in this building category, 10,000 heat pump systems are missing from the domestic market.
The reasons for the decline in new construction are varied. General inflation, increased construction prices and interest rates are reducing people’s purchasing power and ability to make investments. Significantly stricter lending regulations are making it even more difficult for them to implement their construction projects.
“It is not yet possible to predict when and to what extent the economic stimulus program announced by the federal government to stabilize the construction industry will have an impact. The measures are working too slowly for the heat pump industry,” says Freimüller.
Heat pump market development 2023 in Austria
The sharp decline in the overall market in 2023 did not stop at heat pumps. Heat pumps, the heating technology with the highest sales in Austria, were hit with a decline of almost 12% to 43,500 heating heat pumps.
“The goal of topping the record sales of 2022 with around 50,000 newly installed heat pumps in 2023 was far missed. The decarbonization of the heating sector is becoming more and more distant,” says association president Freimüller.
According to the “Heat Future 2050” study by the Vienna University of Technology and Austria’s long-term renovation strategy, around 1,300,000 heat pumps are needed to decarbonize the Austrian building stock. This would require constant annual sales of around 60,000 heat pumps.
Sales of domestic water heat pumps remain stable in the long term at over 11,500 units for the safe and efficient provision of hot water. Both systems, both heating and domestic water heat pumps, are an important part of our future energy system. Sales in the area of large heat pumps also increased by 23.7% and reached the highest annual sales in this segment to date with 162 systems.
Despite decline: heat pumps number 1 on the heating market with increasing market share
The approximately 43,500 heating heat pumps newly installed in 2023 were used almost exclusively for heating renovation. However, due to the significantly smaller overall market, the heat pump’s percentage market share rose to just over 50%.
“The only positive thing about the situation is that the market share of heat pump heating systems increased to over 50% last year. This means that a comeback of fossil heating systems seems highly unlikely,” emphasizes Association President Freimüller.
Data and facts on the heat pump market in Austria, 2023
Heating heat pumps: 43,500 pieces
Domestic water heat pumps: 11,500 pieces
Large heat pumps: 160 pieces
Heat sources: 87% air, 13% earth and groundwater
Employment effect: 6,500 FTE (full-time equivalents, excluding EVUs) 2022
CO2 savings pa: 1,001,847 tons of CO2
Sources: Innovative energy technologies in Austria market development 2022
Federal funding “Out of Oil and Gas 2024”: High subsidies, quality and improved framework conditions support the replacement of heating systems
Heat pump technology and products have developed significantly over the past year. The EHPA seal of quality for heat pumps has established itself as a quality standard, products have become quieter and even more efficient. This also led to adjustments in technical standards and ultimately also in the federal funding conditions.
“The sharp increase in the use of heat pumps in the area of heating replacement is confirmation that heat pumps are an excellent alternative to oil, gas and outdated wood heating systems, even in existing buildings with radiators,” says association president Richard Freimüller.
Important changes, key points and status of funding
- The replacement of oil, gas, coal or direct electricity heating with heat pumps is supported
- The prerequisite for many subsidies in Austria is the EHPA heat pump seal of quality. It is a promise of quality to customers with high standards and efficiency requirements.
- The list of eligible products can be found at www.umweltförder.at. Products are managed in the building and energy technology database, or GET for short.
- 55 ° C max. flow temperature: In accordance with technological developments such as higher efficiency and larger areas of application, the requirements for federal funding have been adapted to the state of the art. Existing radiators therefore do not pose a problem for supporting heat pumps.
Funding amount
- max. €16,000 for air heat pumps
- max. €23,000 for ground and water heat pumps
Surcharges
- + €5,000 well or deep drilling
- + €4,000 low temperature distribution system
In addition, depending on the federal state, up to €12,500 (example: Vienna) in state funding can be applied for. The total amount of public funding is limited to a maximum of 75% of the eligible costs.
Eligible costs include heat pump and source, integration into the heating system, storage, control, electrical installations, dismantling and disposal of boiler and tank.
As of February 5, 2024, 37,737 funding applications and a further 26,547 registrations have already been submitted. At this point in time, funding was still available. H.v. 1,404.1 million euros available.
Customer information and advice: NEW heating matrix from klimaaktiv
Heating conversion: Information and advice from experts supports customers in their decision. If you need to replace an old gas or oil heating system, speak to a heat pump professional!
During the planning phase, the conditions on site are assessed and recorded during the consultation, including previous energy consumption, the condition of the building, the heat emission and hot water system and, if necessary, wishes for room temperatures and comfort. Based on this, the suitable heat pump system can be suggested and offered.
If energy advice is given in advance, consultants are guided by the heating matrix from klimaaktiv. This heating matrix helps you find the right heating system and provides a quick overview of the systems to be recommended.
Heat pumps provide efficient heating based on the ambient heat using electricity. If the planning shows that the flow temperature does not exceed 55 °C, heat pump technology is particularly suitable for covering the heating requirement.
Which heat source and therefore which heat pump is used depends on the building and the local conditions. Small measures such as B. targeted replacement of radiators reduce flow temperatures by a few degrees, saving operating costs in the long term!
New areas of application for renewable heat pump technology – industry, district heating and non-residential buildings
European industry requires around a quarter of Europe’s total energy needs. Of this, 43% is used to provide temperatures of up to 200 °C.
“In many commercial and industrial areas, heat pumps can provide temperatures and performance in a highly efficient, pollutant- and CO2-free manner,” says Association President Freimüller, emphasizing the central role of heat pump technology in the decarbonization of the industrial sector.
For a climate-neutral industry, both the building-related heat supply and the generation of process heat must be converted to sustainable and renewable heat sources.
According to estimates by the International Energy Agency, heat pumps could provide the required 15 gigawatts of heat in 3,000 plants in the paper, food and chemical industries alone in a highly efficient manner, thereby making a significant contribution to reducing costs and CO2 emissions.
The 8th International Large Heat Pump Congress, which will take place this year on Tuesday, June 11, 2024 at the Forstsee power plant, Techelsberg am Wörthersee, is dedicated to this topic.
Questions & Contact:
President Richard Freimüller is available for expert interviews, press discussions, photos, etc. by appointment.
Contact:
Association President Richard Freimüller
Mobile: 0043 (0)664 1111 370, email: freimueller@waermepumpe-austria.at
Maria Gabriel, MSc, PR & Communication
Tel: 0043 (0)732 600 300 70, Mail: gabriel@waermepumpe-austria.at