Photovoltaic vs Heat Pump: SN.at Comparison
- Sales of heat pumps and photovoltaic (PV) systems in Austria are experiencing a downturn despite ongoing government incentives.
- Despite a 6% increase in demand for heating heat pumps in 2024 compared to the previous year, approximately 3,000 fewer units were sold than in 2022.
- Several factors complicate heat pump adoption in existing buildings.
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Heat Pump and Solar Panel Sales Decline in Austria despite Incentives
Table of Contents
Overview
Sales of heat pumps and photovoltaic (PV) systems in Austria are experiencing a downturn despite ongoing government incentives. A reduction in funding rates and availability, coupled with stringent requirements for heat pump installations, are contributing factors. The situation raises concerns about Austria’s progress toward its climate goals, which rely heavily on the adoption of these technologies.
Heat Pump Sales Stagnate
Despite a 6% increase in demand for heating heat pumps in 2024 compared to the previous year, approximately 3,000 fewer units were sold than in 2022. According to Kreutzer, this represents a “miserable result” considering that state subsidies previously covered up to 90% of the investment costs for some models. Industrieradar’s analysis highlights the impact of reduced financial support.
Several factors complicate heat pump adoption in existing buildings. these include the need for a well-insulated building shell, a minimum annual performance factor (JAZ) of 3, suitable heating surfaces (as heat pumps typically produce water temperatures below 50°C), and sufficient space for the unit itself. These requirements add to the overall cost and complexity of installation.
Photovoltaic Funding Cuts
Investment conditions for photovoltaic (PV) systems have deteriorated in 2024. The previous VAT exemption for smaller systems has been replaced with an investment cost subsidy of only 10%, effectively halving the funding rate. Industrieradar reports that only €30 million in funding is currently available.
Despite the reduced funding, PV systems are still viable investments. Though, the lower subsidy levels are likely to slow down the rate of adoption, particularly for smaller residential installations.
“Renovation Offensive 2026” Fails to Revitalize Market
The “Renovation Offensive 2026,” launched in October, offers substantially lower funding rates and is not expected to substantially alter the current trend. The program’s limited financial resources suggest it will not be sufficient to offset the negative impact of the broader funding cuts.
Impact and Future Outlook
The decline in heat pump and PV sales raises concerns about Austria’s ability to meet its climate targets. These technologies are crucial for reducing greenhouse gas emissions and