Wo die Energiewende hakt – und wie sie wieder in Schwung kommt

For the first time in history, heat pumps have become the most commonly installed heating system in German residential buildings, according to statistics released by the Institute for Economic Research (IW). The data reveals a shift in energy usage patterns within households, with heat pumps overtaking predominantly fossil fuel-powered boilers in the context of heating system upgrades. In 2025, 1.9 percent of self-used owner-occupied households installed a heat pump, while 3.4 percent replaced their existing heating systems. This figure aligns with the level observed in 2024. Meanwhile, the installation rate for boiler systems dropped significantly, from 3 to 1.4 percent. New connections to district heating remained low, at just 0.1 percent. The trend marks a notable change in Germany's approach to home heating. According to IW expert Ralph Henger, this represents a genuine turning point in the basement of typical homes. He attributes the rise in heat pump installations to several factors, including the current lowest heating costs associated with these systems. Additionally, many heat pumps can provide cooling during the summer months, eliminating the need for a separate air conditioning unit. Looking ahead, Henger anticipates that heat pumps will continue to dominate the market for heating system replacements through 2026, further expanding their lead over other options. The overall number of new heating systems installed in residential buildings in 2025 was notably lower compared to the previous year. Experts noted a decline in the installation rate from approximately 5 to 3.4 percent. These figures come from a report produced by the Ariadne project, which is funded by the Federal Ministry of Education and Research, Technology, and Aerospace. The IW contributed to this research, which involves annual surveys of around 15,000 households since 2021. Heat pumps are also gaining prominence in newly constructed buildings. According to the Federal Statistical Office, nearly three-quarters (73.6 percent) of the roughly 58,900 residential buildings completed in 2025 are primarily heated using heat pumps. This increase indicates that the share of heat pumps in new constructions has more than doubled over the past decade. The growing adoption of heat pumps reflects broader efforts in Germany to transition toward renewable energy sources and reduce reliance on fossil fuels. As part of its climate policy, the government has been promoting energy-efficient technologies and incentivizing homeowners to upgrade their heating systems. Heat pumps, which utilize ambient heat from the air, ground, or water, offer a more sustainable alternative to traditional heating methods. Despite the positive trends, challenges remain in the widespread adoption of heat pumps. Some homeowners may face initial high installation costs, although long-term savings on energy bills could offset these expenses. Moreover, the effectiveness of heat pumps depends on proper insulation and building efficiency, which requires additional investments in retrofitting older properties. The increased prevalence of heat pumps is also influencing the housing market and construction industry. Developers and builders are increasingly incorporating heat pump technology into new projects, recognizing both environmental benefits and consumer demand. This shift is likely to continue as policies supporting green energy initiatives gain momentum and public awareness of sustainability issues grows. As the data continues to accumulate, experts expect further insights into how the heating sector is evolving. Future reports will shed light on regional variations, technological advancements, and the impact of government incentives on the adoption rates of heat pumps. With ongoing support from policymakers and continued innovation in the field, the role of heat pumps in Germany’s energy landscape is set to expand significantly in the coming years.