EU loosens subsidy rules for heat pumps

At the end of last week, the European Commission announced key changes to state aid guidelines which should boost the heat pump sector.  

The EU wants more relaxed rules on subsidies for specific European sectors to avoid losing out to the US’s green technology plan, the Inflation Reduction Act. The sectors include heat pumps and others like wind turbine and battery manufacturing. 

For EHPA, this will put European companies on a fairer footing with their US counterparts if properly implemented.  

EHPA secretary general Thomas Nowak said: 
“This is an investment in innovation and in a sustainable future, whose dividend will be greater resilience, the use of local renewable energy sources, and clean heat.  

If properly implemented by EU governments, it will put European companies on a fairer footing with their US counterparts.  

It empowers EU countries to retain leadership by increasing manufacturing and installation capacity in their heat pump industries, including through a focus on (re)training and education. This should also be focus of the upcoming Net-Zero Industry Act and the European Commission’s future heat pump action plan .  

Today 60% of heat pumps sold in Europe are made in Europe – EHPA believes that if the EU provides the right, targeted support, subsector goals and a clear pathway to the REPowerEU targets of double annual sales by 2026, that level can be maintained and even increased”.  

 EHPA is preparing a more detailed analysis for our members, which will be shared separately.