Heat pumps become most common heating type in Germany for first time

According to statistics from the Institut der Deutschen Wirtschaft, heat pumps were installed most frequently in German residential buildings for the first time in 2025. The installation rate reached 1.9 percent, surpassing fossil-fuel boilers.

The IW evaluation shows that 3.4 percent of owner-occupied households modernized their heating in 2025. Of these, 1.9 percent installed a heat pump, while the share for boiler heating fell to 1.4 percent.

IW expert Ralph Henger described the development as a real turning point in the boiler room. Reasons include the currently lowest heating costs and the option for summer cooling.

The trend is also continuing in new buildings. 73.6 percent of the 58,900 completed residential buildings mainly use heat pumps. Government subsidies for installation are set to decrease gradually in the coming years.

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German politicians finalizing heating law reform, symbolizing 50/50 landlord-tenant cost sharing for green fuels from 2029.
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Coalition finalizes heating law reform with cost-sharing and quotas

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Germany's black-red coalition has finalized its heating law reform, building on February's agreement. Key addition: landlords and tenants will split costs 50/50 for green fuels in new systems, mandatory from 2029 with rising biogenic quotas.

A study by the German economic institute warns against installing new gas heaters. Annual costs could nearly double by 2040.

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