The article discusses the declining installation of heat pumps in German homes due to high installation costs, which can exceed 30,000 euros. While technical feasibility is confirmed, financial viability remains uncertain despite state subsidies. Comparisons are drawn with installations in other countries, revealing significant price differences attributed to labor and bureaucratic factors. The article highlights the need for better trained technicians and potential adjustments to subsidy structures to address these disparities in the market.
Heat pumps are a practical solution for many homes without extensive renovations. However, installations have decreased compared to last year, likely due to rising installation costs.
During a visit to inspect a house, architect Axel Friedrich collaborates with an energy expert. Both professionals focus on energy-efficient renovations of older buildings. The existing oil heating system is outdated and needs replacement. While replacing it with a gas system would cost around 10,000 euros, the experts agree that installing a heat pump is a viable option.
Currently, approximately one-third of households are utilizing heat pumps, solar power systems, and other energy-efficient technologies.
Installation Costs Exceeding 20,000 Euros
The key question is whether installing a heat pump makes financial sense. Plusminus obtained installation quotes for a terraced house in Berlin from several major providers, all exceeding 30,000 euros. Fortunately, homeowners can benefit from state subsidies, which generally cover 50 to 55 percent of the system costs, depending on the type of heat pump.
Despite state support, homeowners may still face significant additional expenses. While operating costs with current electricity and gas prices suggest that heat pumps could lead to lower heating bills, it might take years for savings to offset the high initial installation costs.
Lower Costs Observed Abroad
A comparative look at other countries indicates that heat pumps could be more economical for homeowners. For instance, Gilles Marciot, a homeowner in Lyon, France, installed a heat pump nearly two years ago. His home, similar in style and age to a terraced house in Berlin, was fitted with a heat pump just shy of 18,000 euros. After accounting for a state subsidy of 2,500 euros, Marciot’s final cost for installation was around 15,000 euros.
Éric Pierresteguy, who handled Marciot’s installation, reviewed the pricing for similar installations in Berlin and noticed no technical differences that would justify the higher costs in Germany. His playful remark was that he might consider working in Germany given the price disparities.
Significantly Lower UK Installation Costs
Among the installation proposals for the Berlin house was one from Octopus Energy, offering a quote of over 34,000 euros. This UK-based company, which has operated in Germany, boasts a training center for installers featuring German-made heat pumps. In the UK, it markets complete installation of a heat pump system for the equivalent of around 9,000 euros, which translates to more than twice that amount in Germany, where prices start at approximately 24,000 euros.
These stark price differences are perplexing. The appliances themselves do not account for the higher costs, as a suitable heat pump for the Berlin residence can be obtained for just over 8,000 euros. The installation appears to be the primary factor inflating the costs in Germany.
Heat pumps are increasingly being adopted in new residential buildings, especially in detached and semi-detached homes.
Complex Installation Factors
The German Central Association for Sanitary, Heating, and Air Conditioning attributes the cost differences to “labor costs, bureaucratic hurdles, technical specifications, and standards.” Octopus Energy points out that homes in the UK tend to be simpler and more uniform, yet this explanation may not fully justify the significantly higher installation costs in Germany.
Architect Burkhard Schulze Darup elaborates on the installation process, which begins with dismantling the old heating system, determining the necessary performance data for the new heat pump, and placing the outdoor unit on a foundational base. The wall is then broken through to connect an indoor unit, which ideally is situated where the previous heating system was located.
The indoor unit integrates with the heating system via existing pipes, mimicking connections found in gas or oil-fired systems. According to Schulze Darup, a skilled team can complete this work in about two days. He notes that the only significant difference encountered abroad is the potential need for a new electrical connection box in Germany, which adds roughly 1,000 euros to the total cost. However, this does not satisfactorily explain the substantial disparities in pricing.
Following a surge in heat pump installations, demand for these systems has plummeted in 2024.
Workforce Shortages and Subsidy Issues
The energy technology provider 1Komma5° also quoted over 30,000 euros for the Berlin project. Its CEO, Philipp Schröder, mentioned that installations could potentially be completed in Germany