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February 26, 2025
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Welcome to ASHRAE's European Policy and Funding Update! This monthly publication features information on policy and funding-related activities of interest to ASHRAE members in Europe. Archives of previous updates are available from the
ASHRAE European Policy and Funding Updates webpage.
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EHPA Press Release on Heat Pump Sales in 2024
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On 19 February, the European Heat Pump Association (EHPA) published a press release detailing heat pump sales trends. According to EHPA, sales of heat pumps in 13 key European markets fell by an average of 23% in 2024 compared to 2023. A total of 2 million units were sold, down from 2.6 million in 2023, slowing the transition from fossil fuels.
The decline is attributed to changes in government support schemes, economic uncertainty, and the low price of subsidized gas. This has led to significant job losses, at least 4,000 confirmed cuts and over 6,000 more impacted, despite the sector's role in European energy security and the EU's clean tech ambitions. Industry leaders are calling for immediate policy action, urging the European Commission and national governments to prioritize heat pumps in the forthcoming Clean Industrial Deal and ensure
supportive regulatory and fiscal measures. While most markets saw declines with Germany (-48%) and Belgium (-52%) being the most severe, the UK was the exception, with a 63% increase in sales due to effective government incentives.
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Solar Thermal Installations Surge in Greece as Result of Energy Crisis
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Greece and Cyprus have set new per capita records in the European solar thermal market, according to a study by the Foundation for Economic and Industrial Research (IOBE). As of 2023, Cyprus recorded 1,260 m² of solar thermal systems per 1,000 residents, followed by Greece with 520 m². Greece also ranks second in total installed surface area with 5.44 million m², trailing only Germany (22.42 million m²).
The study highlights significant economic and environmental benefits from solar thermal adoption. In Greece, solar thermal installations saved 2.1–2.8 million tonnes of CO₂ emissions, translating to €148–€197 million in avoided costs, and reduced energy imports by 4.9–6.1 million barrels of oil equivalent, saving €299–€362 million.
The sector continues to grow, with annual installations rising from 350,000 m² in 2019 to over 460,000 m² in 2023, driven by both domestic demand and exports (62% of sales). By 2023, 38.1% of Greek households used solar thermal systems, with projections under the National Energy and Climate Plan (NECP) targeting 49% by 2050, though IOBE suggests a 60% share by 2030 and 90% by 2050 could be feasible with stronger incentives.
To accelerate adoption, the Greek government has launched a €223 million support program covering 50-60% of the cost of new solar thermal collectors and heat pumps, depending on household income. The program factors in the number of children, residence type, and local climate, marking a shift from previous schemes that prioritized the energy efficiency rating of homes.
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UK Changes Course On Gas Boiler Ban
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The United Kingdom has backed away from a plan to mandate the phaseout of fossil fuel powered home heating. The plan had called for a gradual phaseout of gas boilers and other fossil fuel heating technology, concluding in 2035 with a 100% ban. This was already walked back in January 2025, with the goal being changed to an 80% replacement rate by 2035 instead of an outright ban. This plan has now been scrapped in its entirety; there will be no mandates whatsoever to replace gas furnaces with greener alternatives. However, minimum
energy efficiency standards in the nation are still expected to largely preclude inefficient gas-powered heating, and the government is still offering substantial tax incentives for the purchase and installation of heat pumps.
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UK Plan for Change 2025
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The UK government has announced a new energy efficiency mandate requiring all private rental properties in England and Wales to meet at least an Energy Performance Certificate (EPC) C rating by 2030, up from the current EPC E standard. The initiative, part of the government’s Plan for Change, aims to reduce fuel poverty, cut energy bills, and improve living conditions for tenants.
By raising energy performance standards, the government estimates that up to 500,000 households could be lifted out of fuel poverty, with tenants saving an average of £240 per year on energy bills. Currently, 48% of private rental homes meet the EPC C standard, but ministers aim to extend this across the sector to prevent landlords from being undercut while ensuring warmer, more affordable homes.
Key proposals include:
- Energy efficiency upgrades such as loft insulation, cavity wall insulation, and double glazing, with additional options like solar panels, batteries, and smart meters.
- A £15,000 cap per property for required improvements, with financial support available through schemes like the Boiler Upgrade Scheme and Warm Homes: Local Grant.
- Affordability exemptions, lowering the cost cap to £10,000 for properties with lower rents or in lower council tax bands.
- A grace period until 2030, providing landlords an additional two years compared to previous proposals.
The government is also consulting on a revised fuel poverty strategy, prioritizing home energy efficiency improvements, affordability support, and consumer protections against high energy prices. The move aligns with broader policies, including empowering Ofgem to enhance consumer protections, upgrading 300,000 homes under the Warm Homes Plan, and advancing clean energy through the Clean Power Action Plan.
| UK Heat Pump Market Continues Strong Growth in 2025
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The UK heat pump market had a record start to 2025, with 4,908 installations in January, marking a 21% increase from January 2024, according to certification body MCS. Air-source heat pumps dominated, accounting for 4,826 installations, while 81 ground-source heat pumps were recorded. This surge follows a record-breaking 2024, where the UK was the only major European market to see heat pump growth, with 57,918 certified installations, up 75% from 2023.
The increase is largely driven by the UK government’s Boiler Upgrade Scheme (BUS), which offers a £7,500 grant for heat pump installations in England and Wales. The MCS certification remains key for homeowners accessing this financial support.
Battery storage installations also hit a record 2,619 installations in January 2025, up 176% from the previous year, driven by an expanding certified installer base. Meanwhile, solar PV installations grew to 15,496, compared to 13,298 in January 2024, reflecting continued consumer demand for renewable energy solutions.
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REHVA Annual Meeting 2025
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2 - 3 June 2025,
REHVA will hold its Annual Meeting in Milan, Italy. The Annual Meeting will feature presentations, workshops, and networking opportunities focused on the latest developments in the HVAC industry.
More information is available here.
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CLIMA 2025
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4 – 6 June 2025,
REHVA will hold its 15th HVAC World Congress in Milan, Italy. The theme of this Italian edition is "Decarbonized, healthy, and energy-conscious buildings in future climates".
More information is available here.
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Heat Pump Forum & Award 2025
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On
23 - 24 September 2025,
EHPA will host its flagship heat pump forum.
More information is available here.
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EU
EUROPEAN COMMISSION: The European Commission is made up of 27 Commissioners, 1 for each Member State, and represents the interests of the EU as a whole. Every Commissioner is in charge of a Directorate-General (DG) that can be compared to a Ministry at national level. The European Commission proposes legislation in the form of Regulations and Directives and submits them to the Parliament and Council for discussion and adoption.
EUROPEAN PARLIAMENT:
The European Parliament is made up of 705 MEPs (see below) that are directly elected by EU citizens in 27 Member States.
MEP: Member of the European Parliament, a co-legislator within the EU that is made up of representatives from political parties throughout Member States.
COUNCIL OF THE EU:
Co-legislator, made up of representatives from Member State Governments. Has a six-month rotating presidency, currently held by the Czech Republic until the end of 2022.
EUROPEAN COUNCIL: The European Council is made up of the leaders of the EU member states, commonly known as EU27. It defines the EU’s overall political direction and priorities but does not pass laws.
REGULATION:
EU legislative act that is binding in its entirety and is to be applied in its entirety across the EU by all EU Member States.
DIRECTIVE:
EU legislative act that sets out a goal that all EU Member States must achieve. However, it is up to the EU Member States to adopt their own laws on how to achieve the EU goals enshrined in the Directive.
HORIZON EUROPE:
is the EU’s main and biggest Research and Innovation programme for the period of 2021-2027. The programme has an overall funding of €95,5 billion. The program is divided into three pillars: open science, global challenges & industrial competitiveness and open innovation.
INVESTEU:
The InvestEU Programme builds on the successful model of the Investment Plan for Europe, the Juncker Plan. It brings together, under one roof, the European Fund for Strategic Investments and 13 EU financial instruments currently available. Triggering at least €650 billion in additional investment, the Programme aims to give an additional boost to investment, innovation and job creation in Europe.
EUROPEAN GREEN DEAL:
is a set of policy initiatives by the European Commission with the overarching aim of making Europe climate neutral in 2050. The plan is to review EU’s energy and climate laws to bring them in line with this ambition. Green Deal also introduces new legislation on the circular economy, building renovation, biodiversity, farming and innovation.
FIT-FOR-55-PACKAGE:
The European Commission’s work program for 2021 included the revisions and initiatives linked to the European Green Deal climate actions and in particular the climate target plan’s 55 % net reduction target are presented under the Fit for 55 package. The package is compiled of two parts, released on 14 July 2021 and 14 December 2021.
REHVA:
is the
association of European heating, ventilation and air-conditioning associations, based in Brussels.
You can find all relevant EU building policy related information in this useful document.
UK
BILL: A bill is a proposal for a new law, or a proposal to significantly change an existing law. A bill may start in either the Commons or the Lords and must pass a series of stages in each Houses. Once the bill has been agreed by both Houses, it receives Royal Assent and becomes an Act of Parliament.
HOUSE OF COMMONS: the House of Commons is the lower house and de facto primary chamber of the Parliament of the United Kingdom. Like the upper house, the House of Lords (see below), it meets in the Palace of Westminster. The Commons is an elected body consisting of 650 members known as members of Parliament (MPs). Members are elected to represent constituencies by the first-past-the-post system and hold their seats until Parliament is dissolved.
HOUSE OF LORDS: The House of Lords scrutinises bills that have been approved by the House of Commons. It regularly reviews and amends Bills from the Commons. While it is unable to prevent Bills passing into law, except in certain limited circumstances, it can delay Bills and force the Commons to reconsider their decisions.
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