Reduce cost barriers for heat pump adoption, particularly for the renovation market
Financial incentives such as grants, tax credits and low-interest loans are key tools to reduce the upfront costs of heat pumps, which often exceed those of fossil fuel powered heating systems. These measures should be designed to provide sufficient support for low-income households and address related costs for upgrades of heat distribution systems and other supporting infrastructure. Incentives for energy efficiency retrofits are also key to reduce overall energy demand in buildings, and operating costs for heat pumps installed in existing buildings.
Tilting energy taxation in favour of efficient electric heating can also increase cost competitiveness of heat pumps.