Heat Pump Sales are Impacted by Cheap Gas and Policy changes

Belgium: The sharp decline in heat pump sales that occurred in Europe last year is attributed mostly to two factors: low gas prices and legislative changes.

The European Heat Pump Association (EHPA) has released a new analysis that looks into the 5% decline in unit sales from 2.77 million in 2022 to 2.64 million in 2023, which ended a decade of expansion.

The EHPA analysis, which examines 16 European countries, states that although every country's circumstances are different, there are common factors underlying the decline in sales. Austria, Belgium, Denmark, Finland, France, Germany, Italy, Norway, Poland, Portugal, Slovakia, Spain, Sweden, Switzerland, and the United Kingdom are among the nations that are involved.

Depending on the nation, policy change is shown to be the most important determinant. The research gives instances from Austria where consumers may have postponed buying a heat pump due to an announced increase in subsidies, while Italian consumers may have lost interest due to the withdrawal of government support. According to the research, caution has resulted from the Netherlands' current state of unrest caused by the ongoing coalition talks.

Energy prices were thought to have another major effect, particularly the decline in gas prices given that electricity prices are frequently subject to high taxes. For instance, the cost of electricity is four times higher in Poland than that of gas. Furthermore, the government has frozen petrol costs, and it is unclear what will happen to energy prices in the future. Slovakia is supposedly in a better condition, with electricity costs three times higher than petrol prices.

Source: European Heat Pump Association