Heat Pump Sales Affected as Oil and Gas Heating Systems Resurge in Switzerland
Switzerland: Switzerland's transition to environmentally friendly heating is slowing, with heat pump sales falling by about one-third in 2024, according to RTS (Radio Télévision Suisse (RTS) - Swiss public broadcasting organisation). Meanwhile, installations of gas and oil heating systems rose by 12%, driven by high electricity costs, which average 29 cents per kWh compared to lower prices in countries like Sweden.
Over 50% of Swiss buildings are still heated by fossil fuels, posing a significant challenge to the country's climate neutrality goals, which aim to eliminate net emissions by 2050. The decline in heat pump adoption has led to industry layoffs and raised concerns over meeting long-term emission reduction targets, as heating systems installed today could remain in use until 2040 or beyond.
The high costs of heat pump installation in Switzerland, significantly higher than in other countries, and economic concerns are major deterrents. Ground source heat pumps, for instance, cost CHF 50,000 ($56484 approximately) in Switzerland compared to CHF 17,000 ($19205 approximately) in Sweden. Additionally, debates over subsidies and cost-sharing between landlords, tenants, and governments further complicate adoption.
In Geneva, stricter regulations mandate thermal insulation upgrades, with penalties for non-compliance, but affordability concerns remain for both homeowners and tenants. This trend jeopardizes the Swiss energy transition and may lead to intensified political debates.
Source: Blue News / Le News