Germany considers ending subsidies for heat pumps due to backlash against net zero goals

Germany's conservative leaders are contemplating the removal of financial incentives for heat pumps and dismantling the country's contentious green heating legislation in response to growing opposition to net zero policies. Officials from the Christian Social Union (CSU), a centre-right party in the governing coalition, argued that the "excessive" subsidies should be halted.

A leaked draft of the CSU's main resolution for next week's party conference, obtained by Politico's German edition, proposed overturning the green energy law enacted by the prior administration. The motion emphasized that subsidies for heat pumps, viewed as overly generous, need to be discontinued.

The CSU, led by Bavaria's Markus Sder, is closely linked with Chancellor Friedrich Merzs Christian Democrats (CDU) and plays a central role in the coalition government. Heat pumps, which extract heat from the outside air to warm indoor spaces, were promoted under Germanys former Ampel coalition as part of a law aiming to phase out traditional oil and gas boilers. Despite revisions that softened the legislation, the law faced criticism over high installation costs, which can exceed 20,000 euros (17,000) per unit.

Rising heat pump costs have fueled public frustration and contributed to increased support for the far-right Alternative for Germany (AfD) party, which opposes strict green energy policies. The CSU now seeks not only to end subsidies but also to repeal broader aspects of the green heating law. The motion stated that genuine technological flexibility requires abolishing the previous coalition's stringent heating regulations.

Implementing these changes would require negotiation with the CDU and coalition partners, the Social Democrats, to adjust national policy. Heat pumps remain controversial internationally; in the UK, only 30,000 units were installed in the first half of 2025, far below the annual target of 600,000, largely due to affordability concerns.

Proponents argue that heat pumps are more environmentally friendly than gas boilers, as they do not rely on fossil fuels, but adoption rates suggest significant hurdles remain for widespread uptake.

Author: Logan Reeves