The Transformation of the German Heating Industry: New Opportunities for Chinese Heat Pump Enterprises

Transformation of the German Heating Industry

In 2022, Chinese winter essentials such as electric blankets and electric heaters became popular in Europe. And this year, the German heating industry has witnessed a major transformation. The German parliament voted to pass the German Building Energy Act (GEG) - widely known as the Heating Act. This act clearly states that from 2024, Germany will gradually ban the use of traditional wall - hung boilers and boilers as heating systems and vigorously promote renewable energy heating methods. Each newly installed heating system must achieve a renewable energy contribution ratio of at least 65%, such as heat pumps and biomass boilers.

The introduction of this policy is obviously a huge impact on the traditional German heating industry. Data shows that there are approximately 18.9 million residential buildings in Germany, and about 80% of them use fossil fuels to meet their heat energy needs. The main source of fossil - fuel heating is natural gas, accounting for about 50%; oil heating accounts for one - third; while heat - pump heating only accounts for 3.4%. This means that once this act comes into effect, the demand for heat pumps will increase significantly.

In order to encourage the public to replace and update their heating systems, the German government has also introduced a series of policy subsidies. For example, all homeowners who install climate - friendly heating systems can receive a 30% subsidy for the purchase and installation costs. For families with an annual income of less than 40,000 euros, they can receive an additional 30% subsidy. In addition, if the replacement is completed before 2028, an additional 20% subsidy can be obtained, with a subsidy cap of 70%.

For Chinese heat - pump enterprises, this transformation in the German heating industry is undoubtedly a huge opportunity. Statistical data from the General Administration of Customs of China shows that from January to November 2022, the export volume of Chinese air - source heat pumps increased by 21.8% year - on - year, and the export value increased by 56.5% year - on - year. The main export destinations are major European countries such as France, Italy, Germany, the United Kingdom, and Spain.

Data from the European Heat Pump Association also confirms this trend. In 2022, the sales volume of heat pumps in the whole of Europe was nearly 3 million units, an increase of nearly 40% compared with the previous year. Among them, China is the largest import trading partner of heat - pump products in Europe.