Heat pumps have become an increasingly popular alternative to traditional gas boilers, offering a low-carbon heating solution for environmentally conscious homeowners. However, with the average cost of purchasing and installing a heat pump hovering around €11,500, affordability remains a significant barrier for many potential buyers. While governments across Europe have introduced subsidies to encourage adoption, uptake dropped in 2023 for the first time in a decade, raising concerns about meeting critical climate targets.
The Challenges of Heat Pump Adoption
According to the European Heat Pump Association (EHPA), the decline in adoption rates is due to changes in government support schemes and the decreasing price gap between gas and electricity. In regions where electricity remains more expensive, heat pump sales are slower. This downward trend could jeopardize the EU’s 2030 climate targets, with heating contributions projected to fall short by 25% if the current trajectory continues.
Innovative Solutions: Heat Pumps on Subscription
To tackle the affordability issue, Stockholm-based clean energy company Aira is introducing a subscription model for heat pumps. By spreading the cost over monthly payments, Aira aims to make the technology accessible to a broader audience. Starting at £5,490 (€6,600), Aira’s subscription plans are significantly more affordable than traditional upfront costs.
“One of our key missions is to make heat pumps accessible for people across Europe,” explains Martin Lewerth, CEO of Aira. “We do this by offering affordable monthly payment plans.”
Where Can You Subscribe to a Heat Pump?
Aira is rapidly expanding across Germany, Italy, and the UK, with an ambitious goal of transitioning five million homes to heat pumps within the next decade. While the company has not disclosed the exact number of installations to date, it reports “visiting thousands of homes” each month.
Research commissioned by Aira reveals that half of homeowners in these countries would consider installing a heat pump if it were more affordable, highlighting the financial hurdles that persist in the sector.
Is Your Home Suitable for a Heat Pump?
The EHPA assures that heat pumps are suitable for all types of buildings, provided the existing heating or cooling system is compatible. Studies in the UK have shown that heat pumps are effective in diverse housing types, from Victorian terraces to 1960s apartment blocks.
“Heat pumps have been heating homes across Scandinavia for decades,” notes Lewerth. “In Sweden, heat pump penetration is at 60%, with only 1% of the country’s carbon emissions coming from residential heating.” In contrast, just 1% of homes in the UK have heat pumps, compared to 3% in Germany and 8% in Italy.
Financial Support Across Europe
Governments across Europe offer varying levels of financial assistance for heat pump installation. Grants can range up to €18,000 in some countries, with additional means-tested funding available to combat fuel poverty. However, industry leaders like the EHPA are calling for further action to make electricity more affordable relative to gas, ensuring a level playing field for clean heating technologies.
“As long as clean heating is more expensive than fossil fuel heating, heat pump subsidies must continue with a long-term vision,” says Jozefien Vanbecelaere, Head of EU Affairs at the EHPA.
The subscription model introduced by companies like Aira could revolutionize the adoption of heat pumps, making them a viable option for millions of European homeowners. Combined with government subsidies and a focus on reducing electricity costs, this approach has the potential to accelerate the transition to low-carbon heating and help Europe meet its climate goals.
Source: Euronews
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