Rising heat pump market player: unprecedented new vendor debuts
Building Sector Embraces Heat Pumps as Key to Energy Transition Amid Controversies
German economy editor Bleranda Shabani reports on the growing focus on heat pumps as a cornerstone of the energy transition in the building sector, amid ongoing debates and political controversies. This transition involves challenges, subsidies, and an influx of new market entrants.
Frankfurt - As the energy transition gathers momentum in Germany's building sector, more suppliers are introducing innovative solutions to facilitate the switch to climate-friendly heating. However, the process is not without controversy, with Federal Minister of Economics Katherina Reiche (CDU) recently advocating for a "reality check" regarding the energy transition's high system costs.
According to Tagesschau, Reiche has proposed constructing at least 20 gigawatts of gas power plants to secure supply in situations where wind and solar energy are insufficient.
Federal Subsidy for Efficient Buildings Continues
Despite these debates, the Federal Ministry of Economics has confirmed that the federal subsidy for energy-efficient buildings (BEG) will persist. Homeowners may still receive up to 70% of the costs for a new heat pump installation, particularly when replacing outdated heating systems. These subsidies aim to foster a gradual phase-out of fossil fuels and reduce CO2 emissions in the building sector.
Swedish company Aira has joined the market since autumn 2023, offering rapid heat pump installation within 30 days of ordering. The company targets households with budget constraints, providing a rental model instead of high initial investments. At present, the service is available in Berlin, Brandenburg, Saxony, Thuringia, and parts of Saxony-Anhalt.
IKEA Joins Sustainable Heating Solutions
Even furniture giant IKEA has entered the market with air-water heat pumps since April 2025. The company collaborates with energy service provider Svea Solar to expand its range of sustainable products. Their goal is to make climate-friendly heating solutions more accessible. The heat pumps extract heat from the environment and use it for space heating and hot water preparation.
Installation of a heat pump depends on the specific conditions of the building. IKEA offers a free initial consultation before providing a binding price estimate. IKEA Family members and the IKEA Business Network receive a 15% discount on purchases, in addition to government subsidies. According to Svea Solar, CO2 emissions from heating could be reduced by up to 75% with the installation of a heat pump.
Notable Considerations
- Peak Demand and Grid Capacity: Rising heat pump adoption may strain electrical grids during cold winter days, potentially exceeding current capacity, necessitating grid infrastructure upgrades.
- Cost and Accessibility: While efficient, the high initial cost of heat pumps limits accessibility for many consumers, sparking discussions about making them more affordable and equitable.
- Technical Challenges: Integrating heat pumps into existing buildings can be complex, requiring technological advancements to ensure efficient operation.
Despite these challenges, the energy transition in the building sector is propelled by technological innovation, government support, and emerging market entrants, revolutionizing heat pump integration within energy systems.
In the midst of on-going debates and political controversies surrounding the energy transition in Germany's building sector, the Swedish company Aira has entered the market since autumn 2023, offering rapid heat pump installation to cater to households with budget constraints. Simultaneously, furniture giant IKEA, in collaboration with Svea Solar, has joined the market since April 2025, focusing on making air-water heat pumps more accessible, with a goal to reduce CO2 emissions from heating by up to 75%.
