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.

Analysis: Germany's Shifting Stance on Green Heating Policies

Germany's conservative leadership is re-evaluating its commitment to green energy subsidies, particularly focusing on the contentious heat pump incentive program. The Christian Social Union (CSU), a key member of the ruling coalition, has voiced strong opposition to the current financial support for heat pumps, citing high costs and growing public discontent. The proposed removal of subsidies and potential dismantling of the green heating legislation signal a significant policy shift that reflects the increasing resistance to the country's net-zero goals.

The CSU's draft resolution suggests a reversal of the policies enacted under the previous coalition government. The current green heating law, which promoted the use of heat pumps to phase out oil and gas boilers, has faced widespread criticism due to its high installation costs, often exceeding €20,000 per unit. This has triggered frustration among homeowners and contributed to a rise in support for anti-green energy parties, such as the far-right AfD, which argues against stringent environmental regulations.

With public sentiment shifting against the law, CSU leaders, including Bavaria's Markus Söder, argue that technological flexibility must take precedence over the current regulations. This includes potentially repealing the law's more restrictive aspects and halting the financial incentives designed to encourage heat pump installations. However, implementing these changes would require complex negotiations within the coalition, particularly with Chancellor Merz’s CDU and the Social Democrats (SPD), both of whom support certain green policies.

The controversy surrounding heat pumps extends beyond Germany. In the UK, for example, the installation rate of heat pumps remains far below target, with affordability cited as a major barrier. This suggests that while heat pumps are seen as a more environmentally friendly alternative to gas boilers, their widespread adoption faces significant economic hurdles. As Germany reconsiders its green energy framework, it will be crucial to assess both the environmental benefits and the practical challenges of transitioning away from fossil fuels.

Sources:

• Germany could scrap heat pump subsidies in net zero backlash

Author: Logan Reeves
Logan Reeves is a sports analyst and journalist. He writes match reviews, conducts athlete interviews, and produces data-driven predictions.