Drivers To Heat Pump Adoption by European Households

2024
DRIVERS TO HEAT PUMP ADOPTION BY EUROPEAN

HOUSEHOLDS
DAIKIN EUROPE
Version 1.1 - January 2024

Foreword
Bart Aspeslagh
The European heating market is in full transition. Triggered by REPower EU1, a h
Deputy General Manager
Heating & Renewable Sales Business Unit (Daikin Europe)
With this paper we aim to provide complete and fact-based information about the
benefits of heat pumps from the user perspective. This is intended to be a living
document and we will update it regularly.
The increased demand for heat pumps in recent years has triggered manufacturers to widen their product offer.
Based on a sample from October 2018 to September 2022 of 124,000 heat pump selections (52 % in existing
homes and 48 % in new builds), in the United Kingdom, France and Germany, the Daikin product offer of air-to-
water heat pumps fits in 89 % of existing homes and 95 % of new build homes2.
Though the heat pump offer covers the need of the vast majority of homes in terms of heat load and heat emitters 3
used in the property, the decision to swap from a combustion boiler to a heat pump is not easy. Users are first-time
users, who have no past experience with the comfort level and reliability of the equipment. Additionally, the macro
conditions are complex and volatile. Since the outbreak of war in Ukraine, energy prices have been subject to a
steep increase, followed by a fall to a level close to pre-war times. Local authorities offer a wide range of incentives,
often product-specific, sometimes combining multiple measures. Authorities intend to, and in some cases already
have plans to, ban conventional, combustion-based technology. These are often application-specific and sometimes
region-specific.
In such a complicated macro environment, the first-time heat pump user needs to know whether a heat pump is the
right investment decision for their specific needs.
With this paper, we aim to offer objective, fact-based information and insights to help citizen reach their own
conclusions.
The paper explores six elements:
1. To what extent does a heat pump impact the value of your property, in capital value and rental fee?
Installing a heat pump in a home has a positive effect on the property’s energy label, which in turn has an
effect on the value of the property.
2. What savings on energy costs can be expected when replacing a combustion boiler with a heat
pump?
Oil, gas and electricity prices have shown big fluctuations in 2022 and 2023. With such fluctuations, the
mid- to long-term projections on savings of heat pumps versus combustion boilers are significant.
In chapter 2, a model suggests the most plausible view of savings within a 10-year horizon.
3. Future ban on gas and oil boilers

A map is drawn that clarifies possible or certain restrictions on the usage of gas or oil boilers in specific
applications and regions.
4. Incentive schemes for air-to-water heat pumps

An overview of the incentive schemes in place per country/region and type of technology.
5. Synergies between solar PV and heat pumps
Heat pumps are electrically powered devices and thus have the potential to increase the self-consumption
ratio4. PV energy is mainly produced during the summer while the heat pump mainly operates in winter.
Nevertheless, an increase of the self-consumption ratio can be achieved and a case study is explored in
1 Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social
Committee and the Committee of the Regions REPowerEU Plan COM/2022/230 final
2 Single family home applications, excluding multi-family buildings.
3 Heat emitters: e.g. radiators, underfloor heating etc.
4 The self-consumption ratio is the ratio between the PV production and the portion of the PV production consumed by the loads. This ratio can
vary between 0 % and 100 % and is most often between 30 % and 50 %. The higher the value, the more PV energy is consumed by the
loads in the home and the less energy is sent back to the grid.
Drivers to heat pump adoption by European Households 1

Daikin Europe N.V Version 1
chapter 5.
6. Environmental impact of heat pumps

Heat pumps can, by avoiding the combustion of natural gas or oil, substantially contribute to reducing
carbon emissions in homes. In chapter 6 we take a holistic view of the carbon emissions of heat pumps. By
applying an LCA 5 methodology, all stages are taken into consideration and benchmarked against
conventional technology.
Based on the six-point argumentation, and considering the medium- to long term projections, for many people a
heat pump is a valuable alternative to a gas or oil boiler and will be beneficial from both a life cycle cost and
environmental impact point of view.
Although the authors have tried to be complete in the answers given in this document, some questions may not have
been answered. Please share your questions or thoughts on [email protected].
This report has been prepared by Daikin Europe N.V. It is being furnished to the recipients for general information
only. Nothing in it should be interpreted as an offer or recommendation of any products or services. This report is
based on sources of information believed to be accurate. However, Daikin Europe N.V does not warrant the
accuracy or completeness of any information contained in this report. Daikin Europe N.V assumes no obligation to
update any information contained herein. Unless stated otherwise, the copyright and other intellectual property
rights are owned by Daikin Europe N.V.
5 LCA: Life cycle assessment

Contents
Foreword ........................................................................................................................................................................................... 1
Section 1: Impact of heat pump installation on property value ............................................................................................ 7
1.1 The European Energy Performance Label framework ................................................................................................ 7
1.2 Impact of heat pump installation on a building’s Energy Performance Certificate .............................................. 8
1.2.1 Germany ....................................................................................................................................................................... 8
1.2.2 France ......................................................................................................................................................................... 10
1.2 3 United Kingdom ....................................................................................................................................................... 12
1.2.4 Italy ............................................................................................................................................................................. 15
1.2.5 Spain........................................................................................................................................................................... 17
1.2.6 Poland ........................................................................................................................................................................ 19
1.2.7 The Netherlands ....................................................................................................................................................... 21
1.2.8 Belgium ....................................................................................................................................................................... 23
1.3 Effect of improved energy efficiency on real estate property value .................................................................. 24
1.3.1 Effects on the German market .............................................................................................................................. 25
1.3.2 Effects on the French market ................................................................................................................................. 27
1.3.3 Effects on the UK market ........................................................................................................................................ 29
1.3.4 Effects on the Spanish market ............................................................................................................................... 30
1.3.5 Effects on the Dutch market ................................................................................................................................... 32
1.3.6 Effects on the Italian market .................................................................................................................................. 35
1.3.7 Effects on the Belgian market ............................................................................................................................... 36
1.4 Conclusions ......................................................................................................................................................................... 38
Section 2: Savings Projections in time ....................................................................................................................................... 39
2.1 Introduction......................................................................................................................................................................... 39
2.2 Building the model ............................................................................................................................................................ 39
2.2.1 Estimating a baseline for EU energy prices ....................................................................................................... 39
2.2.2 Estimating the effects of ETS and carbon taxation on the forecast prices .................................................. 42
2.2.3 Estimating the standard house .............................................................................................................................. 44
2.2.2 Estimated running costs and energy savings ........................................................................................................... 45
2.5 Conclusions ......................................................................................................................................................................... 47
Section 3: Ban on existing technologies ................................................................................................................................... 48
3.1 Introduction......................................................................................................................................................................... 48
3.2 Germany ............................................................................................................................................................................ 49
3.3 Belgium ............................................................................................................................................................................... 51
3.3.1 Flanders ..................................................................................................................................................................... 51
3.3.2 Brussels ....................................................................................................................................................................... 51
3.3.3 Wallonia .................................................................................................................................................................... 51
3.4 France ................................................................................................................................................................................. 52
3.5 United Kingdom ................................................................................................................................................................ 52
3.6 Netherlands ....................................................................................................................................................................... 54
3.7 Italy...................................................................................................................................................................................... 54

3.8 Conclusions ......................................................................................................................................................................... 55
Section 4: Incentive schemes ....................................................................................................................................................... 56
4.1 Intro...................................................................................................................................................................................... 56
4.2 Germany ............................................................................................................................................................................ 56
4.2.1 Minimum technical requirements for the subsidy of a heat pump ................................................................................................ 57
4.2.2 Other eligible costs for subsidies ........................................................................................................................................... 57
4.2.3 New buildings ..................................................................................................................................................................... 57
4.3 Belgium ............................................................................................................................................................................... 57
4.3.1 Federal ....................................................................................................................................................................... 57
4.3.2 Flanders ..................................................................................................................................................................... 58
4.2.3 Brussels ....................................................................................................................................................................... 60
4.2.4 Wallonia .................................................................................................................................................................... 60
4.3 The United Kingdom ......................................................................................................................................................... 61
4.3.1 UK and Wales .......................................................................................................................................................... 61
4.3.2 Scotland ..................................................................................................................................................................... 62
4.3.3 Additional possible support ................................................................................................................................... 62
4.4 France ................................................................................................................................................................................. 63
4.4.1 Eligibility .................................................................................................................................................................... 63
4.4.2 Amount of the grant ................................................................................................................................................ 64
4.5 Poland ................................................................................................................................................................................. 65
4.5.1 Eligibility .................................................................................................................................................................... 66
4.5.3 Additional support ................................................................................................................................................... 67
4.6 The Netherlands ................................................................................................................................................................ 67
4.6.1 Eligibility............................................................................................................................................................................ 67
4.6.2 Amount of the grant ............................................................................................................................................................. 68
4.6.3 How to apply ...................................................................................................................................................................... 68
4.7 Spain ................................................................................................................................................................................... 68
4.7.1 Eligibility............................................................................................................................................................................ 69
4.7.2 Eligible actions .................................................................................................................................................................... 69
4.7.3 Amount of the grant ............................................................................................................................................................. 69
4.7.4 How to apply? ..................................................................................................................................................................... 69
4.8 Italy...................................................................................................................................................................................... 70
4.8.1 Eligibility .................................................................................................................................................................... 70
4.8.3 How to apply ............................................................................................................................................................ 70
4.8.4 Further bonuses ......................................................................................................................................................... 70
5.9 Conclusions ......................................................................................................................................................................... 71
Section 5: Optimized utilisation of solar PV technology ...................................................................................................... 72
5.1 Introduction......................................................................................................................................................................... 72
5.2 Reducing feed-in tariffs .................................................................................................................................................. 72

5.2.1 Germany .................................................................................................................................................................... 72
5.2.2 Netherlands ............................................................................................................................................................... 73
5.2.3 Belgium ....................................................................................................................................................................... 73
5.2.4 Conclusion .................................................................................................................................................................. 73
5.3 Heat pumps and PV: seasonality throughout the year ............................................................................................. 73
5.4 Heat pumps and PV: profile during the day .............................................................................................................. 74
5.5 Heat Pumps and PV: optimalisation ............................................................................................................................. 75
5.5.1 Behaviour for domestic hot water heating ......................................................................................................... 75
5.5.2 Behaviour for space heating and/or cooling .................................................................................................... 76
5.5.3 How to connect ......................................................................................................................................................... 77
5.6 Heat pumps and PV: case study ................................................................................................................................... 77
5.6.1 Specifics of the case study ..................................................................................................................................... 78
5.6.2 Self-consumption ratio definition .......................................................................................................................... 78
5.6.3 Graphical representation of case study results................................................................................................. 78
5.6.4 Numerical representation of case study results ................................................................................................. 79
5.6.5 Summary results of the case study ....................................................................................................................... 79
5.6.6 Energy savings .......................................................................................................................................................... 80
5.6.7 Yearly projection ..................................................................................................................................................... 80
5.7 Heat pumps and PV: international research ............................................................................................................... 81
5.8 Conclusion ........................................................................................................................................................................... 83
Section 6: Carbon footprint of heat pumps............................................................................................................................. 84
6.1 Ongoing decarbonisation of heating ........................................................................................................................... 84
6.2 The role of heat pumps in decarbonisation ................................................................................................................ 84
6.2.1 Heat pump advantages for decarbonisation .................................................................................................... 84
6.2.2. Heat pumps support in EU regulation ................................................................................................................. 85
6.3 LCA of heat pumps ........................................................................................................................................................... 85
6.3.1 Whole life carbon.................................................................................................................................................... 86
6.3.2 Environmental Product Declaration ...................................................................................................................... 87
6.4 Case study: carbon footprint of Daikin heat pumps vs gas boiler ........................................................................ 87
6.4.1 Products being compared ...................................................................................................................................... 87
6.4.2 Whole life carbon.................................................................................................................................................... 89
6.4.3 Embodied carbon..................................................................................................................................................... 89
6.4.4 Operational carbon ................................................................................................................................................ 90
6.4.5 Heat pump carbon emission benefits during use stage per country ............................................................. 90
6.5 Conclusion ........................................................................................................................................................................... 93
6.6 Environmental impact of refrigerant ............................................................................................................................ 93
6.6.1 Definition and function of refrigerants ................................................................................................................ 93
6.6.2 Refrigerant choice.................................................................................................................................................... 94
6.6.3 Environmental impacts: ODP and GWP .............................................................................................................. 94
6.6.4 Refrigerant in the LCA approach ......................................................................................................................... 95
6.6.5 No leakage, no carbon emission ......................................................................................................................... 96

6.6.6 Refrigerant treatment ............................................................................................................................................. 96
6.6.7 Daikin Loop for refrigerant recycling.................................................................................................................. 97
6.6.8 Commitment to use lower GWP refrigerants .................................................................................................... 99
6.7 Conclusions ......................................................................................................................................................................... 99
Acknowledgements ..................................................................................................................................................................... 101
Bibliography.......................................................................................................................................................................................... 102
Foreword ........................................................................................................................................................................................... 102
Legal documents ............................................................................................................................................................................ 102
Section 1: Impact of heat pump installation on property value .................................................................................................................... 102
Legal documents ..................................................................................................................................................................... 102
Web pages ............................................................................................................................................................................. 103
Official Reports ...................................................................................................................................................................... 103
Scientific research .................................................................................................................................................................. 104
Section 2: Savings Projections in time ..................................................................................................................................... 105
Web pages ............................................................................................................................................................................. 105
Section 3: Ban on existing technologies ................................................................................................................................. 105
Legal documents ..................................................................................................................................................................... 105
Web pages ............................................................................................................................................................................. 106
Section 4: Incentive schemes ..................................................................................................................................................... 106
Legal documents ..................................................................................................................................................................... 106
Web pages ............................................................................................................................................................................. 106
Section 5: Optimized utilisation of solar PV technology .............................................................................................................................. 107
Web pages ............................................................................................................................................................................. 107
157 Photovoltaics
report – Frauenhofer Institute for Solar Energy Systems, ISE with support of PSE Projects GmbH –
21/2/2023 – .............................................................................................................................................................................. 107
Section 6: Carbon footprint of heat pumps ............................................................................................................................................... 108
Web pages ............................................................................................................................................................................. 108

Section 1: Impact of heat pump installation on property value
Elisa Yoshitake
Product Management Officer
Heating Sales Business Unit (Daikin Europe)
“This section showcases the positive impact of heat pumps installation on the
energy classes of dwellings in the EU. Additionally, in several countries,
installing a HP increases the value of the property”
1.1 The European Energy Performance Label framework

The Energy Performance of Buildings Directive (EPBD), last reviewed in 2018, sets out minimum requirements and
a common framework for calculating energy performance in an effort to improve the energy performance of
buildings in the European Union (EU)6.
Under this framework, energy performance certificates became compulsory in 2019 when selling or renting a
building. Similarly, inspection schemes for heating and air conditioning systems must be established 7.
Energy performance certificates (EPCs) assign buildings a label ranging from A (most energy efficient) to G (least
energy efficient). The certificate is valid for 10 years. In case of renovations, a new certification must be issued
that takes into account improvements before selling or leasing the property.
F IGURE 1.1 S OURCE : CERTI BRU THE ENERGY P ERFORMANCE OF BUILDINGS

Following the directive, all 27 member states and the UK have implemented the EPBD requirements in their national
legislations.
6 Directive 2010/31/EU of the European Parliament and of the Council of 19 May 2010 on the energy performance of buildings (recast)
7 European Commission – DG Energy: Certificates and inspections;

1.2 Impact of heat pump installation on a building’s Energy Performance Certificate
To isolate the energy-saving effect of a heat pump on the EPC label, we have calculated the energy consumption
of an existing house with a certain EPC class rating, which we assume is representative of the entire building stock
in that class. Within this existing house space, heating and domestic hot water are for example provided by means
of electricity, gas or oil fuel. An EPC simulation is then carried out for each of these houses to calculate the new EPC
label that could be reached when the existing installation is replaced by a heat pump to power space heating and
domestic hot water.
For the purpose of this study, we have decided not to change emitters whenever possible. For example: if radiators
are installed, it is assumed the same type of emitter is kept after the installation of the heat pump. Whether or not
the same radiators can be reused depends on the situation. However, radiators can be replaced easily at a low
cost especially compared to the alternative of installing underfloor heating. Conversely, if the house features an
underfloor heating system, that system was considered for the installation of the heat pump.
Furthermore, the exact reduction in a house’s energy consumption per square metre per year (kWh/(m²/year))
varies depending on heterogeneous factors. A house with a very efficient heating installation but poorly insulated
roof and walls has a certain energy consumption of X kWh/(m²/year) – corresponding with a certain EPC label.
Suppose that we now have a completely different house with the opposite situation, i.e. good insulation of the roof
and walls but a very inefficient heating system. It may be that this completely different house has a similar energy
consumption and thus falls in the same EPC class. In these two imaginary cases, installing a heat pump will have a
greater effect on the house with the more inefficient heating system. This difference will perhaps become clearer
with the aid of a practical example (see the following section).
The effect of a heat pump is also relative to the combined effect of other renovation measures. Many such measures
can achieve a reduction in yearly energy consumption of a residential building, and hence an improvement in EPC
label. However, even without other renovation measures, a heat pump can still result in a significant reduction of
the yearly energy consumption (for more on this topic, see Section 2).
All the following simulations, which will be referred to in the country-specific section, were carried out where possible
by, or at least with input from, recognised energy experts with the expertise and assets to perform such calculations.
1.2.1 Germany
EPC framework
The EPBD regulations are also applied in Germany and evaluations take place according to the procedures for
calculation of annual heat and energy use8 and heating, domestic hot water supply and ventilation9 . With the DIN
V 1859910 calculation method, a planned building is always compared directly to a reference building with the
same geometry but with specified quality standards for the building shell and a specified heating system and
building equipment.
The building is evaluated by assessing its shell and the primary energy requirement, depending on the heat
generator, the heat transfer medium and all other energies required for heating, cooling, lighting, etc.
Depending on what is changed in the building or in the system technology, these evaluations must be re-reported
and a new assessment must be carried out.
For the replacement of a heat generator, legal regulations regarding the use of regenerative energies must be
observed as follows and the proportional use for heating the building must be documented.
The German Buildings Energy Act (Gebäudeenergiegesetz, GEG)11 is a summary of several ordinances that were
issued individually until 2020 and in this context regulates the content of this legal basis for standards in the
construction and renovation of buildings in order to implement energy efficiency requirements and optimise the use
of energies. The GEG contains requirements for the energy efficiency of buildings and the use of energy certificates
and renewable energies.
8 DIN V 4108-6 Wärmeschutz und Energie-Einsparung in Gebäuden - Teil 6: Berechnung des Jahresheizwärme- und des
Jahresheizenergiebedarfs
9 DIN V 4701-10 Energetische Bewertung heiz- und raumlufttechnischer Anlagen - Teil 10: Heizung, Trinkwassererwärmung, Lüftung
10 DIN V 18599 Energetische Bewertung von Gebäuden - Berechnung des Nutz-, End- und Primärenergiebedarfs für Heizung, Kühlung, Lüftung,
Trinkwarmwasser und Beleuchtung - Teil 1: Allgemeine Bilanzierungsverfahren, Begriffe, Zonierung und Bewertung der Energieträger
11 Gesetz zur Vereinheitlichung des Energieeinsparrechts für Gebäude und zur Änderung weiterer Gesetze Vom 8. August 2020

Energy performance certificates are issued by experts who are qualified according to the GEG. Energy classes
range from H to A+
F IGURE 1.2 SOURCE : D EIN-HEIZUNGS BAUER
The Bundesförderung für Effiziente Gebäude (BEG)12 is a technical set of rules that is required to obtain government
funding to replace a heat generator. Funding is provided for the construction, conversion or expansion of a building
network, provided that at least 65 % of the heat generation that feeds the building network after the measure has
been carried out comes from energy-efficient systems, including heat pumps with a seasonal performance factor
of at least 2.7.
Requirements for the sound power level will also be relevant from 2024. The refrigerants used will also be
regulated: from 2028 only natural refrigerants will be permitted.
Effect of the installation of a heat pump on a building’s energy class
Daikin Germany has performed simulations to assess the effect of changing the existing heat generator to a heat
pump without any further adjustments to the building to reduce the heat requirement.
The heat pump effect is summarised below13:
Year of Starting energy Energy class after heat

Project Heat source
construction class pump installation
Heidelberg
1958 Oil BoilerNT ’84 H D
Building
Heidelberg
1967 Oil BoilerNT ’87 G C
Building
Gas condensing
Karlsruhe Building 1983 boiler 2005 incl Solar D C
hot water
Gas condensing
Hamburg Building 2008 D A
boiler 2008
In each simulation, the installation of a heat pump results in improved energy efficiency and higher energy class.
12 Richtlinie für die Bundesförderung für effiziente Gebäude – Einzelmaßnahmen (BEG EM) vom 9. Dezember 2022 (Fundstelle: BAnz AT
30.12.2022 B1)
13 Please note that the simulations aim to showcase the effect of heat pump installation and do not always reflect feasible renovation projects.
To receive tailored advice, please refer to professional energy advisors.

1.2.2 France
Context, regulations and target
The 2015 Energy Transition Act for Green Growth sets a target of 2050 for the housing stock to include all buildings
are renovated to low-energy building standards. The Énergie et Climat (Energy and Climate) and Climat et
Résilience (Climate and Resilience) laws have introduced a minimum energy performance requirement in the
definition of decent housing.
For reference, there are an estimated 5.2 million low-energy homes in France*. A passoire énergétique is a dwelling
with very high energy consumption for heating, domestic hot water and cooling and/or high greenhouse gas
emissions. These homes have a very poor energy rating.
Diagnostique de Performance Energetique (DPE)
Since 2006, the DPE has provided information about the energy performance of a dwelling or building, by
assessing its primary energy consumption. The DPE is compulsory for all sales and rentals of properties in mainland
France, with some exceptions (see article R126-15 of the French Construction and Housing Code 14).
In 2022, new changes came into force to further limit the impact of the most energy-intensive homes. In accordance
with the Loi de l’Evolution du logement, de l’aménégament et du numérique (ELAN) 15 , the DPE became fully
enforceable on this date. Previously issued for information purposes, the DPE now has legal force. This means that
anyone involved – tenant, buyer, seller or landlord – can take legal action in the event of a fault, error or omission
in the assessment.
The DPE must be carried out at the initiative and expense of the owner or lessor, and incorporated in the Technical
Diagnostic File (DDT), which contains all the reports and statements that must be included in the preliminary contract
of sale or lease. The DPE must be carried out by a certified diagnostician with professional insurance cover.
The DPE is given to the buyer or tenant, who can then estimate their housing budget (heating costs, insulation
performance, etc.), with the diagnosis indicating the property’s estimated annual energy costs.
Since April 202316,17, increasing the rents of housing classified F or G has been prohibited and an energy audit is
compulsory for owners wanting to sell properties rated F or G.
From 2025, it will be prohibited to rent accommodation classified G; from 2028, this ban will be extended to F-
rated housing. From 2034, the ban will also apply to E-classified properties.
The DPE has been the subject of numerous updates. Today it is presented as follows:
• the relevant characteristics of the dwelling and a description of its equipment;
• an indication of the annual quantity of energy consumed or estimated for each category of equipment,
and an estimate of the annual consumption costs;
• an assessment of the greenhouse gas emissions associated with the annual energy consumed or estimated;
• the classification of the home according to a reference scale (energy label);
• recommendations for improving the property’s energy performance, with an assessment of their cost and
effectiveness. (The recommendations are for guidance only on the correct use of the home and its
equipment.)
14 Code de la construction et de l'habitation

15 LOI n° 2018-1021 du 23 novembre 2018 portant évolution du logement, de l'aménagement et du numérique
16 Décret n° 2021-19 du 11 janvier 2021 relatif au critère de performance énergétique dans la définition du logement décent en France
métropolitaine
17 Décret n° 2002-120 du 30 janvier 2002 relatif aux caractéristiques du logement décent pris pour l'application de l'article 187 de la loi n°
2000-1208 du 13 décembre 2000 relative à la solidarité et au renouvellement urbains

Below is an example of an energy label, from the French Ministry of the Ecological Transition and Territorial
Cohesion18 :
F IGURE 1.3 S OURCE : M INISTERE DE LA T RANSITION ECOLOGIQUE ET DE LA COHESION DES TERRITORIES , MINISTERE DE
LA TRANSITION ENERGETIQUE
The DPE includes a label ranging from A (extremely efficient) to G (extremely inefficient), covering two aspects:
energy consumption and greenhouse gas emissions. The label is based on the worse of the two assessments: that of
energy consumption and greenhouse gas emissions.
Two ratings in the form of letters are given: one concerning primary energy consumption, the other concerning the
carbon footprint. This is called the double threshold. The lowest score is kept to define the class to which the
accommodation belongs.
Explanation of energy labels
F IGURE 1.4 S OURCE : CEREMA LE NOUVEAU DPE
18Diagnostic de performance énergétique – DPE; Ministère de la Transition écologique et de la Cohésion des territoires, Ministère de la
Transition énergétique

The impact of heat pump solutions on the DPE label
Daikin Europe has calculated the impact of the installation of a heat Pump using the energy balance calculator
provided by Engie France19. For each simulation, two identical buildings were taken into consideration (year of
construction, district, living area, shape, etc.). The results are summarised below20.
Starting energy Starting energy consumption Resulting energy class Resulting energy consumption
class – gas boiler – kWhEP/m²/year – heat pump – kWhEP/m²/year
G 434.6 F 350.2
F 379.6 E 307.4
E 269 D 221.2
D 191.9 C 161.1
C 111.6 B 98.5
B 99.2 B 94.1
After the installation of the heat pump, the energy consumption of the building improves, resulting in a jump of one
energy class in five out of six scenarios.
1.2 3 United Kingdom
Energy Performance Certificate assessment

In the UK, the a property’s EPC is produced using the Standard Assessment Procedure (SAP), a methodology used
by the government to assess and compare energy and environmental performance. It provides accurate and
reliable assessments to support energy and environmental policy initiatives. The Simplified Building Energy Model
(SBEM) is a similar methodology used for non-domestic properties.
The most recent version, SAP 10 (10.2) 21, became effective in June 2022 with updated Part L building regulations.
It includes changes to fuel prices, CO2 emissions and primary energy factors. For existing dwellings, a simplified
version called Reduced Data SAP (RdSAP) 22 is used, which assumes certain conventions and requirements based on
when the dwelling was constructed.
SAP and RdSAP are used for various purposes, such as demonstrating compliance with building regulations for new
dwellings and generating EPCs. SAP works by assessing how much energy a dwelling will consume when delivering
a defined level of comfort and service provision. This is based on standardised assumptions for occupancy and
behaviour and enables a like-for-like comparison of dwelling performance.
SAP quantifies a dwelling’s performance in terms of:
• energy use per unit floor area;
• a fuel cost-based energy efficiency rating (the SAP rating);
• CO2 emissions (the Environmental Impact rating).
These indicators are based on estimates of annual energy consumption for the provision of space heating, domestic
hot water, lighting and ventilation.
The SAP ratings table23 (below) shows the relationship between the SAP rating and the intermediate SAP bands.
The higher these ratings, the more efficient the dwelling will be. This in turn increases the value of the property (for
more on this subject, see Section 1.3.3).
19 Energy balance – Engie.fr

20 Please note that the simulations have the purpose of showcasing the effect of heat pump installation and do not always reflect feasible
renovation projects. To receive tailored advice, please refer to professional energy advisors.
21 SAP 10.2: Government's standard assessment procedure for energy rating of dwellings: Version 10.2 (11-04-2023)
22 Appendix S: Reduced Data SAP for existing dwellings
23 Ofgem Energy Company Obligation (ECO4) Guidance: Delivery V1.1

F IGURE 1.5 SAP RATINGS AND CORRESPONDING INTERMEDIATE SAP BANDS.
S OURCE: ENERGY COMPANY O BLIGATION (ECO4) GUIDANCE: DELIVERY V1.1 OFGEM
Future developments include SAP 11, which is being developed to support net zero commitments for buildings. A
consortium led by the Building Research Establishment is working on this, with recommendations to enhance its
accuracy, robustness and suitability for net zero goals. SAP 11 is expected to come into force in 2025, along with
the Future Homes Standard update of the Building Regulations.
ECO4
The Energy Company Obligation (ECO) is a government funding scheme aimed at improving energy efficiency and
reducing carbon emissions in Great Britain while tackling fuel poverty. The most recent version is ECO4.
The ECO scheme works by obliging medium and large energy suppliers to promote measures to improve the ability
of low-income, fuel-poor and vulnerable households to heat their homes. This includes actions that result in reduced
energy usage, such as installing insulation or upgrading a heating system. This mechanism is known as the Home
Heating Cost Reduction Obligation.
There are minimum increases in the energy efficiency rating of properties after measures funded by the ECO4
scheme have been carried out. The minimum requirements are to improve the energy efficiency rating of band D
and E homes to at least a band C, and band F and G homes to at least a band D.
ECO funding is affected by a number of variables such as:
• type of property;
• combination of measures used;
• starting band of the property;
• type of heating system used.
EPC Improvement using heat pumps under ECO4

Daikin UK employed consultancy firm Gemserv24 to carry out the tests25 on different house types and calculate the
banding before and after the changes were made. The measures were heat pumps, PV panels, cavity wall insulation
and loft insulation.
According to ECO4, other measures such as double glazing and smart thermostat could also be added to potentially
improve the banding and therefore funding for the property. However, in this instance, double glazing and smart
thermostats were not considered. Note that no emitters were changed as part of this simulations.
24Gemserv – part of Talan International Consulting Group

25Please note that the simulations have the purpose of showing the effect of heat pump installation and do not always reflect feasible renovation
projects. To receive tailored advice, please refer to professional energy advisors.

EPC Rating
Reference Energy Efficiency Rating Before Heat Pump Added =
Archetype: Building Type: Build Date: After EPC Rating After (WITH PV)
Floor Area: Heat Pump: Daikin
(WITHOUT PV)
Archetype 5 Semi-detached 1900-1929 (SW) 93 D-64 EDLA08EV3 C-71 B-87
Archetype 7 End-terrace 2007-2011 (CW) 98 E-50 EDLA08EV3 C-77 A-95
Archetype 8 Mid-terrace Pre-1900 (SW) 105 D-66 EDLA08EV3 C-73 B-89
Archetype 12 Mid-terrace 1967-1975 (CW) 85 E-39 EDLA08EV3 C-71 B-88
Archetype 13 Detached 1983-1990 (CW) 127 F-31 EDLA08EV3 C-72 B-84
Archetype 14 End-terrace 1983-1990 (CW) 74 E-41 EDLA08EV3 C-71 B-90
Archetype 15 Top Floor Flat 1930-1949 (CW) 56 D-59 EDLA08EV3 C-78 A-102
F IGURE 1.6 S IMULATIONS BY GEMSERV FOR D AIKIN UK
Property archetypes (house types) used
Ten Archetypes Considered
Archetype 1: Archetype 2: Archetype 3: Archetype 4: Archetype 5:

Detached House Detached House Detached House Detached House Semi-detached House
Pre-1900 – Solid Wall* 1950-1966 – Cavity Wall 1967-1975 – Cavity Wall 1991-1995 – Cavity Wall 1900-1929 – Solid Wall*
Heat Demand: 21,110 kWh/a Heat Demand: 19,887 kWh/a Heat Demand: 17,241 kWh/a Heat Demand: 18,077 kWh/a Heat Demand: 11,464 kWh/a
Current: Oil Boiler Current: Oil Boiler Current: Oil Boiler Current: Oil Boiler Current: Oil Boiler
Archetype 6: Archetype 7: Archetype 8: Archetype 9: Archetype 10:

Semi-detached House End-terrace House Mid-terrace House Top Floor Flat Mid Floor Flat
1950-1966 – Cavity Wall 2007-2011 – Cavity Wall Pre-1900 – Solid Wall* Pre-1900 – Solid Wall 1967-1975 – Solid Wall
Heat Demand: 12,106 kWh/a Heat Demand: 8,353 kWh/a Heat Demand: 11,161 kWh/a Heat Demand: 9,502 kWh/a Heat Demand: 12,407 kWh/a
Current: Oil Boiler Current: Electric Panel Current: Oil Boiler Current: Oil Boiler Current: Electric Panel
Table 1: displays the ten archetypes selected to test the various heating system / retrofit scenarios.
*It has been assumed that these archetypes have external solid wall insulation
F IGURE 1.7 S OURCE : OWN
SW = solid wall, CW = cavity wall

The 10 archetypes were chosen to represent a variety of typical UK properties, including detached and semi-
detached houses, terraces and flats, across a range of construction dates and heat demands. Using the TABULA
online tool, it has been determined that these 10 archetypes are representative of 60 % of the UK housing stock.26
Following initial analysis it was agreed that only archetypes 6-10 would be used, as these represented the most
suitable options for Daikin models and typical eco properties. The improvement in EPC rating depends on whether
PV panels are also used.
26 UK findings of the IEE funded project Episcope

1.2.4 Italy
Energy Performance Certificate
The technical legislation for energy performance calculation is regulated by the Specifica tecnica UNI/TS 1130027 .
For the purpose of energy efficiency calculation, the country is divided into climatic zones from A to F, with A being
the warmest (i.e., small islands in the Mediterranean Sea) and F the coldest (i.e., Alps).
For each climatic zone, a heating period is defined. Every city has an annual reference climate based on historical
values, with a typical design temperature (i.e. minimum annual is -5°C for Milan) and a defined medium
temperature for every hour in a year. The geographical areas are divided into zones according to the gradi giorno
value of each Commune. The gradi giorno are calculated as the difference between the average inside and outside
temperature (set at 20° C). The map below summarises the climate zones in Italy.
F IGURE 1.8 S OURCE : CERTIFICO. COM

According to UNI 11300, heat pumps’ effect on buildings’ energy efficiency must be simulated into two
conditions: full load using EN 14511 data and partial load according to EN 14825 data.
The EPC label in Italy is called the APE (attestato di prestazione energetica) and according to the Legislative
Decree 192/200528 is mandatory for buildings listed on the market from 01/07/2009 and for building rentals
starting from 01/07/2010.
After several updates, there are 10 energy classes from G to A+++ (A4). Each class represents a range of energy
consumption, which is expressed through the overall energy performance index, denoted by the acronym EPGL.
This indicates the kWh/(m²year) required to heat the room during the cold season, to cool it in summer, to produce
domestic hot water, to ventilate it and to light it29.
27 Le norme tecniche di riferimento per la stima delle prestazioni energetiche degli edifici UNI/TS 11300
28 Decreto legislativo 19 agosto 2005, n. 192 Attuazione della direttiva 2002/91/CE relativa al rendimento energetico nell'edilizia. (GU Serie
Generale n.222 del 23-09-2005 - Suppl. Ordinario n. 158)
29 Acea Energia - Nuova classificazione energetica edifici: cos'è e come migliorarla

F IGURE 1.9 S OURCE : ACEA. IT
The EPC label is calculated as the sum of many primary energy consumptions. The EPGL takes into account:
• winter heating ;
• summer air conditioning;
• domestic hot water production;
• mechanical ventilation;
• artificial lighting, only for non-residential properties;
• transport of people or things, only for non-residential properties.
In this calculation, renewable energy is considered a negative addendum. This applies to electricity production from
PV, heat from heat pumps, part of biomass combustion, etc.
There is not an absolute separation (kWh/m2) between classes, as it varies across climatic zones, as described
above, for which a reference building is defined (setting the typical envelope, windows, thermal insulation
characteristics, etc.)30
An EPC label is therefore assigned to each building comparing it with the set reference building.
Heat pump installation effect on the EPC
In such legislation, it is very difficult to define a typical impact of heat pump on EPC label. For this reason, Daikin
Italia commissioned specific simulations from an external energy efficiency expert 31 . The calculations were
performed using Edilclima32 software.
In a first exercise, the simulation focused on the renovation market, on buildings carrying EPC labels from F or E
which means they were built approximately before 1990. Daikin considered the substitution of old gas boiler
(oversized and not condensation), with a right-size heat pump or a hybrid system maintaining the existing
envelope33.
For buildings in climate zone E (Milan), considering the worst classes from F to E, the heat pump installation could
result in a jump of three or four classes.
For buildings in climate zone D (Rome, Naples), considering the worst classes from F to E, heat pump installation
could result in a jump of four or five classes.
Using a condensation boiler with weather-dependent regulation, substitution with a heat pump could result in
buildings in classes G to E jumping by at least two classes. Hybrid installation was responsible for one class jump34.
30 Descrizione dell’edificio di riferimento e parametri di verifica – Requisiti minimi Appendice A

31 Davide Rosa – Studio tecnico Home page
32 Edilclima Engineering & Software – About us
33 Please note that the simulations have the purpose of showing the effect of heat pump installation and do not always reflect feasible

In Milan, climatic zone E, starting from class E with condensation boiler, a jump of two EPC classes was achieved
with a centralised EPRA system, and a single EPC class jump was performed with a mix of ERLA system and boiler
(centralised hybrid).
F IGURE 1.10 S OURCES: EDILCLIMA SIMULATIONS
1.2.5 Spain
EPC framework
The Royal Decree 235/201335 transposes the Directive 2010/31/EU into Spanish legislation and sets the basic
procedure for the certification of energy efficiency of buildings in Spain. According to the RD 235/2013, new
building projects must refer to the new basic procedure, with the previous rating calculation methods being valid
(Lider-Calener, CE2, CEs, CERMA, HE1mem).
The energy certificate measures the energy characteristics of a premises, office or home. An energy rating is
obtained according to an energy label: A, B, C, D, E, F or G, with A the most favourable rating and G the least.
Next to each letter is shown the energy consumption expressed in kWh/year and emissions of kgCO 2/m2 year36.
The owners of existing buildings are obliged to obtain and show the EPC to potential buyers or tenants as well as
to the general public if the building is open to the public and/or occupied by public authorities.
F IGURE 1.11 E NERGY RATING AND INDEXES FOR

BUILDINGS FOR PRIVATE RESIDENTIAL USE ( HOUSING )
35 Real Decreto 235/2013, de 5 de abril, por el que se aprueba el procedimiento básico para la certificación de la eficiencia energética de
los edificios.
36 Calificación de la eficiencia energética de los edificios – Ministerio de Industria, Energía y Turismo

The energy efficiency certificate is an official document and as such can only be issued by professionals with the
qualifications to develop thermal projects, e.g. engineers or architects as expressed in the LOE37 and the Building
Planning Law38, which regulate the building sector in Spain.
According to the Ministry of Industry on Energy Efficiency, energy efficiency certificates must contain four documents:
• energy efficiency rating;
• recommendations;
• description of the tests;
• compliance with environmental requirements.
Heat pump installation effect on the EPC label
Daikin Spain carried out a simulation of the impact of installing a heat pump in a single family house in Cadiz,
south-west Spain. Daikin used a certified software for the EPC calculation.
Using the complete data of the building (location, isolation, orientation, shadows and ventilation level) the software
calculates the cooling and heating demand. The house is then assigned a preliminary label based on this.
The software accounts for the impact of the heating generator in terms of type, efficiency, the possible PV or
thermal solar installation. With this data, a new label is issued for the non-renewable energy consumption per
square metre as well as a labelling for CO2 emissions per square metre.
For the purpose of the simulation, the heat pump used is Daikin’s ERGA06 in a 110 m2 single-family house. The
house was originally labelled in the lower part of D (76.31 kWh/m2/year). By substituting the boiler with a heat
pump, the energy label improves to a high C”. Therefore, depending on the initial situation of the building, replacing
a gas boiler with a heat pump improves the energy label by one class.
BOILER
F IGURE 1.11 S OURCE: DAIKIN'S SIMULATION
37Ley Orgánica 2/2006, de 3 de mayo (BOE del 4 de mayo), de educación (LOE)

38Real Decreto 1627/1997, de 24 de octubre, por el que se establecen disposiciones mínimas de seguridad y de salud en las obras de
construcción.

ALTHERMA
F IGURE 1.12 S OURCE: DAIKIN' S SIMULATIONS
1.2.6 Poland
EPC framework
The Act on the Energy Performance of Buildings (2014) 39 establishes the Central Register of the Energy
Performance of Buildings, which includes databases of:
• persons authorised to produce EPCs;
• persons entitled to inspect heating or AC systems;
• EPCs;
• protocols for heating or AC system inspections.
Along with building codes, the listed regulations and the databases form the main framework for the
implementation of the EPBD in Poland.
A maximum energy performance index value (kWh/(m2/year)) determines the annual non-renewable energy
demand for space heating, ventilation, cooling and domestic hot water, and, for collective, industrial, storage and
livestock buildings, for built-in lighting. This index is calculated according to Polish legislation for calculating a
building’s energy characteristics40. The above requirements for new buildings also apply to the renovation of
existing buildings.
The maximum energy performance from 1January 2021 must be:
• for single family houses: 70 kWh/(m2/year);
• for multi-family houses: 65 kWh/(m2/year).
In 2024, new energy efficiency classes for buildings are planned to be introduced in Poland. Previously, sellers or
landlords were obliged to provide energy performance certificates for buildings when concluding the relevant
agreement, but this obligation was not subject to a penalty. Under the amendment, sellers and landlords are
required to provide EPCs for the parts of the buildings to which the respective agreements relate, and introducing
a fine in case of non-compliance.
See below the draft energy classes with corresponding performance:
39Ustawa z dnia 29 sierpnia 2014 r. o charakterystyce energetycznej budynków

40Rozporządzenie Ministra Infrastruktury i Rozwoju z dnia 27 lutego 2015 r. w sprawie metodologii wyznaczania charakterystyki
energetycznej budynku lub części budynku oraz świadectw charakterystyki energetycznej

F IGURE 1.13 S OURCE GLOBENERGIA
Effect of heat pump installation on the EPC

Daikin Poland has simulated the impact on the EPC of a change in heating source on the building energy class. The
simulation featured a building from 2015 measuring 116.7m2, with EP = 117kWh/m2/year. The starting heat
source is a gas boiler.
The heat pump characteristics to use in the simulation are set by legislation41 and are summarised below.
F IGURE 1.14 S OURCE: METHODOLOGY FOR DETERMINING THE ENERGY PERFORMANCE OF A

BUILDING OR PART OF A BUILDING
To determine the annual demand for non-renewable primary energy , the annual demand for final energy should
be calculated, taking into account the non-renewable primary energy factor (wi), which depends on the energy
carrier or fuel used42. The wi coefficient in this case is set at wi = 3.0 because electrical energy is mostly
generated by burning coal.
41 legislation for AW HP: rozporządzenie ministra infrastruktury i rozwoju z dnia 27 lutego 2015 r. w sprawie metodologii wyznaczania
charakterystyki energetycznej budynku lub części budynku oraz świadectw charakterystyki energetycznej
42 A. Alsabry, K. Szymański, B. Michalak “Energy, Economic and Environmental Analysis of Alternative, High-Efficiency Sources of Heat and
Energy for Multi-Family Residential Buildings in Order to Increase Energy Efficiency in Poland” Alsabry, Szymánski, Michalak (2023)

The Wi coefficient is the non-renewable primary energy input factor for the generation and supply of heat (wH
factor), domestic hot water (wW coefficient), cooling (wC factor), or electricity (wel factor). 43
F IGURE 1.15 COEFFICIENTS OF NON - RENEWABLE PRIMARY ENERGY INPUT WI AND EC CO2 EMISSION
INDICATORS . S OURCE : M ETHODOLOGY FOR DETERMINING THE ENERGY PERFORMANCE OF A BUILDING OR
PART OF A BUILDING
The selected building, according to draft energy classes (which is likely to be introduced in Poland in 2024) falls
within the E class. Calculations below for this building 44:
After replacing with a air-to-water heat pump (SCOP = 3.0), the Ep = 95 kWh/m2/year, so the energy class
changed to D.
1.2.7 The Netherlands

Homeowners who are selling or renting out an existing home, or building a new home, are obliged to provide a
registered and definitive energy label to the buyer or tenant. The label indicates the energy performance of the
house and what improvements are possible.
The energy label is determined according to the calculation method NTA 880045, Assessment guideline (BRL) 9500
and ISSO Publication 82.1. This method applies to existing and new buildings. Labels remain valid for 10 years.
43 Dz.U.2015.376 ROZPORZĄDZENIE MINISTRA INFRASTRUKTURY I ROZWOJU 1 z dnia 27 lutego 2015 r. w sprawie metodologii
wyznaczania charakterystyki energetycznej budynku lub części budynku oraz świadectw charakterystyki energetycznej
45 Nederlandse technische afspraak NTA 8800:2023 (nl) Energieprestatie van gebouwen - Bepalingsmethode

Energy performance advisors determine the label based on how much fossil energy – coal, oil and natural gas –
the home uses in terms of kWh/(m2/year).
The image below46 summarises the energy class split in the Netherlands. The least energy efficient class is the G
label, which consumes 380 kWh/m2/year of energy from fossil fuels. The best performing class groups together
energy neutral dwellings (net fossil fuel consumption equals zero).
F IGURE 1.16 THIS IMAGE SHOWS THE BOUNDARIES OF THE ENERGY LABEL CLASSES , USING THE NEW ENERGY
PERFORMANCE INDICATOR PRIMARY FOSSIL ENERGY USE (BENG 2) ( PHOTO © S PRING AGREEMENT )
S OURCE: WOONBEWUST . COM
The most common energy label for building in the Netherlands (taking out class A to A++++ ) is C.
Daikin Netherlands has performed six simulations of heat pump installation, to assess the effect of the energy
efficiency of the dwelling in different settings. Each terraced house starts from a different energy label; the
results are summarised below.
Heating and
Walls Roof Floor Heating Label with HP
Current label Windows Ventilation Domestic hot
Insulation Insulation Insulation system air/water
water
Boiler non
F (1965) 0,44 (m2.k)/W 0,4 (m2.k)/W 0,15 (m2.k)/W 5,1 W/(m².K) Radiators Natural D
condensing
Boiler non
E (1975) 1 (m2.k)/W 1,04 (m2.k)/W0,28 (m2.k)/W 5,1 W/(m².K) Radiators Natural C
condensing
Natural inflow
Boiler non
D (1985) 1,3 (m2.k)/W 1,3 (m2.k)/W 1,3 (m2.k)/W 3,7 W/(m².K) Radiators - mechanical B
condensing
outflow
Natural inflow
Boiler non
C (1995) 2,5 (m2.k)/W 2,5 (m2.k)/W 2,5 (m2.k)/W 3,1 W/(m².K) Radiators - mechanical A
condensing
outflow
Natural inflow
Condensing
B (2005) 2,5 (m2.k)/W 2,5 (m2.k)/W 2,5 (m2.k)/W 3,3 W/(m².K) Radiators - mechanical A+
boiler
outflow
Natural inflow
Underfloor Condensing
A (2015) 3,5 (m2.k)/W 3,5 (m2.k)/W 3,5 (m2.k)/W 1,65 W/(m².K) - mechanical A++
heating boiler
outflow
F IGURE 1.17 E FFECT OF HEAT PUMP INSTALLATION ON ENERGY LABELS S OURCE: DAUK CALCULATIONS
46 Woonbewust.com - Het nieuwe energielabel voor woningen. Wat verandert er in 2021?

In all cases, the installation of the heat pump improves the energy efficiency of the house, resulting in a jump of
two energy classes in each simulation47.
1.2.8 Belgium
In Belgium, each of the three regions – Flanders, Wallonia and Brussels-Capital – has its own version and scope of
the EPC label regulation. This includes the subdivision of energy consumption48,49,50 range into labels; see below.
F IGURE 1.18: EPC - LABEL SUBDIVISION PER B ELGIAN REGION.

Other differences mainly apply to the relevant sector (apart from the residential sector). A more in-depth discussion
is beyond the scope of this section.
To carry out an EPC simulation, the heat pump’s energy performance should be calculated in one of two ways,
either using the exact (s)COP values 51 or via the energy label. The simulations in Belgium used the energy labels.
These indirectly contain the (s)COP value as each label represents a certain energy performance range. The
software, if a label is entered, will calculate with the lowest and therefore least efficient value.
In Belgium, the simulations were carried out in Flanders by a recognised energy expert. The heat pump’s energy
performance for space heating and domestic hot water was entered according to the energy label. For the EPC
labels considered (F to B), an existing residential building was selected, representative of the building stock with
that label.
A and A+ labels were not considered because it is very difficult to reach those performance figures without
installing a heat pump. For each simulation, the existing heating system was replaced with a heat pump and the
same emitters were kept. When the emitters in the original building were radiators or convectors, the same type
of emitter was chosen for the heat pump system.
The results of the simulations are shown in the table below 52. In the last column, the simulated reduction in annual
energy consumption is expressed in EPC label jumps. One EPC label jump corresponds to 100 kWh/(m²/year) as
that is the resolution used by Flanders for the subdivision in labels. A given reduction in yearly energy consumption
depends on the original situation (i.e. the original energy needs) whether an EPC label change occurs or not.
47 Please note that the simulations have the purpose of showing the effect of heat pump installation and do not always reflect feasible renovation
projects. To receive tailored advice, please refer to professional energy advisors.
48 Energy performance certificates (Flanders) – Belgium.be
49 Energy performance certificate for a dwelling – Service Public de Wallonie
50 EPB certificate for residential units – Brussels-Capital Region
51 Seasonal efficiency is a new way of measuring the true energy efficiency of heating and cooling technology, over an entire year. This new
measure gives a more realistic indication of the energy efficiency and environmental impact of a system. Source: What is seasonal efficiency
(SCOP and SEER)-Daikin.eu

F IGURE 1.19 SOURCE: THIRD PARTY EXPERT
1.3 Effect of improved energy efficiency on real estate property value

In some member states where energy performance schemes have a long tradition, a positive impact on the real
estate market has been recorded: in 2013, a European Commission study 53 captured encouraging price sensibility
to energy class rating increases in eight of the nine regions examined (see Fig. 1.1).
The improvement of one class impacted resale prices more than rent transactions.
F IGURE 1.20 S OURCE: ENERGY PERFORMANCE CERTIFICATES ACROSS THE EU (2014) BPIE
These findings build confidence in the existing literature on energy efficiency premiums such as Brounen and Kok
(2009) who were the first researchers to investigate the capitalisation of energy savings resulting from retrofits
into housing prices in the European context. Their model was able to provide evidence of a price premium for
green-labelled dwellings in residential markets in the Netherlands54. Later, Popescu, Bienert, Schützenhofer, &
Boazu (2012) isolated market sensitivity to energy efficiency measures in Romania as well 55.
In the same year that the EC carried out its assessment, Hyland et al. (2013) concluded that A-rated properties
received a sales price premium of 9 % compared to D-rated properties in the Irish market56. Ramos et al. (2015)
observed how properties in Portugal with EPC labels equal to A, B or C were sold at a 5.9 % higher price per
square metre compared to those with an EPC equal to D. EPC labels equal to E, F or G were sold for 4% less57.
53 BPIE “Energy performance certificates across the EU” (2014)

54 D.Brounen, N.Kok, J. Menne “Energy Performance Certification in the Housing Market Implementation and Valuation in the European Union”
(2009)
55 D.Popescu, S. Bienert “Impact of energy efficiency measures on the economic value of buildings” (2012)
56 M. Hyland, R.C. Lyons, S. Lyons ”The value of domestic building energy efficiency — evidence from Ireland” (2013)
57 A. Pérez-Alonso, A. Ramos, S. Silva “Valuing Energy Performance Certificates in the Portuguese Residential Sector” (2015)

In the Irish rental market, Stanley et al. (2016) showed how a one-point improvement in the 15-point scale from G
to A1 yielded a list price increase of 1 % 58.
Fuerst et al. (2016) observed that higher energy ratings were correlated with higher prices and shorter selling
times in the period 2009-2012 in Finland59. In the same year, Wahlström correlated improved energy efficiency
of buildings with a premium reselling price in Sweden 60.
On the Eastern European market, Taltavull et al. (2017) found an energy premium between 2.2 % and 6.5 % was
paid for energy-efficient properties in Bucharest61.
Finally, Khazal and Sønstebø (2020) found that real estate with the same characteristics and EPC label in the
Norwegian market was assigned a higher rental price by professionals compared to non-professionals. Properties
with high energy efficiency were associated with a 5 % higher premium if rented out by a professional, where
1.8 % is the difference in green label valuation62.
1.3.1 Effects on the German market
In Germany, the German Energy Act for Buildings (GEG) was passed to promote higher renovation rates and
accelerate decarbonisation. The GEG aims to simplify regulations and unify national energy standards for buildings.
Additionally, a federal funding scheme called Bundesförderung für effiziente Gebäude provides tax deductions
for energy-efficient renovations (see more on the topic in Tier 4 “EU Incentives overview”).
The first evidence of EE labels on German real estate value is explained by Kholodilin, Mense and Michelsen (2016)
in “The market value of energy efficiency in buildings and the mode of tenure”, which focuses on the Berlin
apartment housing market. The results indicate that for a €1 reduction in annual energy costs, there is an
associated €15.50 increase in the per square metre house price. For rented properties, a €1 reduction in energy
cost per square metre/year is associated with a premium of €6.22. The willingness to pay for energy efficiency
in owner-occupied dwellings is almost 2.5 times greater than in rented homes. A decrease in annual energy costs
by €1 leads to an increase in annual rental income of approximately €0.23 per square metre.
Owner-occupants also appear to be conservative, bordering on pessimistic, about the potential revenues from
reselling their homes, which more than recoup the costs associated with retrofitting.
In 2019, Cajias, Fuerst, and Bienert further investigated the German rental market in the paper “Tearing down the
information barrier: the price impacts of energy efficiency ratings for buildings in the German rental market”. The
findings indicate that landlords receive a small but significant premium for energy-efficient dwellings when leasing
residential properties.
58 S. Stanley, R.C. Lyons, S. Lyons “The price effect of building energy ratings in the Dublin residential market” (2015)
59 F. Fuerst, E. Oikarinen, O. Harjunen “Green signalling effects in the market for energy-efficient residential buildings” (2016)
60 M. H. Wahlström “Doing good but not that well? A dilemma for energy conserving homeowners” (2016)
61 P. Taltavull, I. Anghel, C. Ciora “Impact of energy performance on transaction prices: Evidence from the apartment market in Bucharest”
(2017)
62 A. Khazal, O.J. Sønstebø “Valuation of energy performance certificates in the rental market – Professionals vs Non professionals” (2020)

F IGURE 1.21 S OURCE: C AJIAS, FUERST, AND BIENERT "T EARING DOWN THE INFORMATION BARRIER : THE PRICE
IMPACTS OF ENERGY EFFICIENCY ” (2019)
Although the energy efficiency effect is reflected in rents across the German residential market, the premiums are
somewhat lower in densely populated cities due to high demand and low housing supply. 63
The presence of EPCs influences tenants’ utility function64, leading to higher demand for energy-efficient dwellings
and reduced demand for rental properties that do not meet energy efficiency standards. Additionally, regression
results indicate that energy-inefficient dwellings experience longer time-on-market.
When focusing on the overall German market, asking rents within the energy categories A+, A, B and C are on
average 0.9 %, 1.4 %, 0.1 % and 0.2 % higher than the reference category D, whereas dwellings in the
subsequent categories show substantial rental discounts. Energy-inefficient dwellings in the categories F, G and H
exhibit rental discounts of up to 0.1 %, 0.3 % and 0.5 % respectively.
Effects on the German market of EPCs are further investigated by Taruttis and Weber (2022)65. In the paper, the
authors highlight the importance of the installed heating system in relation to energy efficiency in dwellings. Houses
equipped with heat pumps are found to be the most energy efficient on average. Approximately one-quarter
of the analysed dwellings underwent renovations since 2000, and there is evidence to suggest that sustainable
energy systems like solar panels, wood pellet heating or heat pumps have been installed in these modernisation
efforts.
The effects of energy efficiency on prices vary across regions, with urban areas experiencing an average price
increase of 6.3 % when energy consumption decreases by 100 kWh/m2/year. The effect is weaker in large cities
(5 %). The geographical distribution shows positive Energy Efficiency Premiums (EEPs) clustered in rural districts.
Differences across regions can be explained by market conditions. For instance, EEPs are lower in regions where
housing supply is tight and in high-income districts leading to the hypothesis that high energy costs are not
considered problematic by affluent buyers.
Costs for single measures of energy refurbishment, such as installing a new heating system, are capitalised
into housing prices by about 86 %, excluding the effect of government funding.
The estimated house price increase for a €1 reduction in yearly energy costs amounts to approximately €20.
63 Cajias, Fuerst, and Bienert “Tearing down the information barrier: the price impacts of energy efficiency ratings for buildings in the German
rental market” (2019) TOP7Markets: Hamburg, Berlin, Dusseldorf, Cologne, Frankfurt, Stuttgart, Munich
64 a function relating specific goods and services in an economy to individual preferences Source: Collins Dictionary, definition of “utility
function”
65 Taruttis and Weber “Estimating the impact of energy efficiency on housing prices in Germany: Does regional disparity matter?” (2022)

F IGURE 1.22 AVERAGE ASKING PRICE AND AGE BY CATEGORY OF THE ENERGY EFFICIENCY
RATING . S OURCE : T ARUTTIS AND W EBER (2022)
1.3.2 Effects on the French market

In France, a working paper by Leboullenger et al. (2018) identifies a sales premium between 1 % and 3 % for
green single houses in the local housing market of Dijon (Burgundy, France)66.
More recently, Civel (2020)67 analysed two real estate markets with very different levels of prices, one densely
populated (the Lyon metropolis, central France) and one with low-density and vast rural spaces (Brest, in Brittany).
Absolute premiums associated with each grade of the EPC are largely similar in the two regions, despite the
important differences between each market. Capitalisation of energy label information is therefore more
important in relative terms in rural areas, but in absolute terms rural and urban green premiums are similar,
reaching about €35,000 for low-consumption houses. Moreover, those premiums are consistent with corresponding
renovation costs, suggesting that green value results from a Bertrand-type competition68 between sellers, thus
preventing them from selling a low-consumption property for a price higher than its renovation cost.
The association Notaires de France recently published a statistical study on the value of old homes in 2021
according to their energy label69. This study is based on information from their property transfer databases. The
report shows stability in the distribution of existing housing transactions according to the energy label in mainland
France in 2021 compared to 2020.
66 Leboullenger et al. “Is there a market value for energy performance in a local private housing market?” (2018)
67 Civel “Capitalization of energy labels versus Techno-economic assessment of energy renovations in the French housing market.” (2020)
68 In which sellers play a strategy of setting prices below competitors' prices Source: C. Qin and C. Stuart “Bertrand versus Cournot Revisited”
(1997)
69 Notaires de France “La valeur verte des logements en 2021” (2022)

Dwellings classified A and B represent 7 % of transactions in 2021, while the most energy-intensive (F-G) account
for 11 %.
F IGURE 1.23 E NERGY LABEL IMPACT ON APARTMENT SALE PRICES . S OURCE: NOTAIRES DE
F RANCE “THE GREEN VALUE OF HOUSING IN 2021” (2022)
The impact on price of switching from a D label to A or B is significant whether for apartments (an increase
of 3-16 %) or houses (6-14 %).
It is, however, lower in Provence-Côte d’Azur (from +3 to +6 % depending on the type of property) and higher in
Occitanie (from +11 to +16 % depending on the type of property). The negative premiums of a very energy-
intensive label (F-G) are more significant in houses (from -3 to -19 %) than in apartments (from -2 to -11 %).

F IGURE 1.24 E NERGY LABEL IMPACT ON HOUSE SALE PRICES .
S OURCE: THE GREEN VALUE OF HOUSING IN 2021 (2022)
Similar findings were reached by Creti (2021)70 who found an effect of the EPC on house prices between classes
C and D, D and E, and E and F. In absolute terms, the potential label premium is estimated between €1,454 to
€2,549 for houses, and between €697 and €2086 for apartments, implying that the EPC class premium
might be larger for bigger dwellings. Buyers of bigger properties might therefore place a higher value on
energy efficiency as they anticipate facing higher heating requirements.
The study found no impact at the thresholds between the two most energy-efficient classes (A and B) or the two
classes with the worst energy performance (F and G).
Current legislation71 in France prevents energy-inefficient dwellings (> 450 kWh/m2) from being offered on the
rental market. From 2024, G-labelled dwellings will not be allowed on the rental market and in 2028, the ban
will be extended to F-class dwellings.
1.3.3 Effects on the UK market
The UK implemented the European Union’s Energy Performance of Buildings Directive in 2008. This led to the
creation of EPCs aimed at providing information about a building’s energy performance.
The first large-scale empirical project on energy savings capitalisation in the UK was published in 2015 72 and
analysed dwellings sold between 1995 and 2012 in England. The paper found a positive relationship between
properties’ energy efficiency rating and the transaction price per square metre. The price effects of superior
energy performance are higher for terraced dwellings and flats than for detached and semi-detached properties.
The evidence is less robust for growth rates of house prices.
70 Creti “Greenium or manipulation? An analysis of the French housing market” (2021)

71 LOI n° 2021-1104 du 22 août 2021 portant lutte contre le dérèglement climatique et renforcement de la résilience face à ses effets (1)
72 Fuerst, McAllister, Nanda and Wyatt “Does energy efficiency matter to home-buyers? An investigation of EPC ratings and transaction prices in
England” (2015)

A second study, published in 201673, looked at residential prices in Wales between purchasers who buy dwellings
for their own use and those who buy for investment purposes. Fuerst et al. 74 found statistically significant positive
price premiums in EPC bands A and B (12.8 %) and C (3.5 %) compared to band D. Conversely, statistically
significant discounts were observed for dwellings in band E (-3.6 %) and F (-6.5 %).
More recently75, research by Knight Frank found that homes in the UK that had moved from a D to a C rating
added an additional 3 % to their value above local house price growth, which is on average equivalent to £9,003
premium on the resale value. Homes moving two bands forward from E to C saw an average uplift of 8.8 %
(£29,289).
Scottish Power and WWF published a study in 2022, highlighting how low-carbon technologies (LCTs) can increase
energy savings and increase property value76. According to their analysis, installing a heat pump could increase
the sales value of a home by around £5,000-£8,000 gross (excluding the cost of installation); solar panels could
increase sales value by £1,350-£5,400; and an EV charge point could increase it by £5,400-£7,400. A
combination of these technologies could increase the value of a home by, on average, around £10,000. Individual
homes could see sales value increases in excess of this figure.
Authors created an equity valuation model, with a large dataset containing over 5.4 million English and Welsh
house sales transactions, along with a dataset containing over 1 million installations of LCTs. The potential increase
in sales value is proportional to the capital cost of installing the LCT for heat pumps and solar panels (see table
below), while it is disproportionately higher than the cost of installation for EV charging points, as the table illustrates.
F IGURE 1.25 S OURCE: WWF AND S COTTISH POWER "B ETTER HOME , COOLER PLANET "(2022)
LCTs also have the potential to significantly reduce energy bills.
The average equity value increase of air-source heat pumps reflects the average equity value uplift for all
heat pumps (air- and ground-source). This is because the number of heat pumps installed in the UK is still relatively
small, so limiting the analysis to air-source heat pumps would have made the sample less robust. It should be noted,
however, that a large majority of the sample were air-source heat pumps.
A survey of home buyers carried out by property firm Savills 77 showed that homes with heat pumps command a
59 % premium compared to regional averages. Its survey showed that 71% of buyers consider EPC ratings in
their decision-making, with 59 % willing to pay a premium for a home 75 % powered by renewable sources.
Properties using heat pumps command the second highest average prices (£483,935). This premium is most acute
in the south east, with homes on average 84% more expensive.
1.3.4 Effects on the Spanish market

Compared to other European countries, the implementation of the EPC Directive into Spanish law is relatively recent
(June 2013).
73 Energy performance ratings and house prices in Wales: An empirical study (2016)
74 Energy performance ratings and house prices in Wales: An empirical study (2016)
75 Improving your EPC rating could increase your home’s value by up to 20% (2022)
76 Better home, cooler planet: how low-carbon technologies can reduce bills and increase house value (2022)
77 Buyers paying significantly more for homes with low-carbon technology, as energy prices rise (2022)

Ayala, Galarraga and Spadaro (2015)78 determined the ratings of a sample of 1,507 homes across Spain and
applied a hedonic price technique79 to investigate whether the Spanish market capitalises the value of energy
efficiency. Energy-efficient dwellings with higher EE ratings registered a price premium of between 5.4 % and
9.8 % compared to those with the same characteristics but lower level. The findings are generally in line with the
European housing market literature: the sales price premiums of improving energy rating generally fall in the
estimated range (5.4-9.8 %).
According to hedonic pricing estimations, all else being equal, homes labelled A, B or C are valued at 9.8%
higher than D, E, F or G-rated ones. Properties with an A, B, C or D rating have a 5.4 % premium compared to
homes with E, F or G ratings.
Duarte and Cheng (2018) 80 investigated the evolution of EPC impacts on residential prices in Spain (the
metropolitan area of Barcelona) over time. The study confirmed a positive rise in prices for increased EPC ratings .
In relation to rank G (the comparison base) energy class A increases prices by 8.6 % for both years (2014 and
2016); the remainder of the classes for the base year is not statistically significant. However, the interaction
variables (i2016 x EPC class) suggest that the importance of energy rating on price has clearly increased as shown
in Figure 1.26.
F IGURE 1.26 S OURCE: DUARTE AND CHENG "THE EVOLUTION OF ENERGY EFFICIENCY IMPACT ON HOUSING
PRICES . A N ANALYSIS FOR M ETROPOLITAN BARCELONA " (2018)
The study concludes that, in general, the more efficient ratings exhibit an increased impact on prices. Such
increment ranges from 10.7 % to 10.5 % for B to D ranks respectively. Rank A also shows a positive increase
but fails to meet the significance criteria.
More recently, Duarte and Chen (2022)81 found that EPC rating remain a price driver (7.5 % increase for A, B and
C ratings) for the upper tier of apartments in central and affluent zones and they are positively correlated with
price increments (on average 1.8 % increase for each EPC increment). The case study focused on multi-family homes
in the Barcelona metropolitan region, where these types of property are dominant.
The paper highlighted that, if the dwellings’ architectural quality (from functionality and quality of materials to
aesthetic features) is poorly controlled, the marginal price of EPC ratings is artificially inflated. Through housing
market segmentation, however, it appears that a market premium for efficient homes exists in the niche of
apartments that target an affluent, well-educated population.
This demographic is not primarily concerned with energy savings but has a higher level of awareness and
subsequent willingness to pay for the benefits of efficient homes on their well-being.
78 A. de Ayala, I. Galarraga, J. V. Spadaro “The price of energy efficiency in the Spanish housing market” (2015)
79 The method assumes that different goods are differentiated by the number of characteristics (attributes) they pose. At the market equilibrium,
the price is a mixture of demand-side and supply-side attributes that can be analysed with the method. A complete description of this technique
can be found in Braden and Kolstad (1991).
80 C.M. Duarte, A. Chen “The evolution of energy efficiency impact on housing prices. An analysis for Metropolitan Barcelona” (2018)
81 C.M. Duarte, A. Chen “Uncovering the price effect of energy performance certificate ratings when controlling for residential quality” (2022)

1.3.5 Effects on the Dutch market
The first notable study to analyse the impact of energy efficiency on house prices in the Netherlands was carried
out by Brounen and Kok (2011)82. Their work was carried out between 2008 and 2009.
Non-labelled homes were used as a comparison group. Based on the thermal quality of the homes, they are rated
from A++ to G, where an A++ label indicates the highest energy efficiency.
Evidence suggests that Dutch homes with an A label sell for 10.2 % more than otherwise similar homes with
a D label. The premium for B-labelled homes is 5.5 % and houses with a C label sell for 2.1 % more. Dwellings
rated less than D are sold at a discount.
In 2016, Chegut, Eichholtz and Holtermans83 focused on energy savings capitalisation in the affordable housing
sector. In this case, recouping the energy savings through higher rents is difficult due to an extensive programme of
rent protection. The tenant benefits from the reduced energy bill while the building owner undertakes the energy
efficiency investment, resulting in a split incentive.
One solution for affordable housing owners would be to sell energy-efficient affordable dwellings on the market.
In principle, this solution is viable, but many countries have legal impediments in place to prevent this. Dutch
affordable housing institutions, however, are allowed to sell from their stock, and the authors used this natural
experiment in housing policy to analyse the value of energy efficiency in affordable housing.
The results of the EPC labelled sample show that homes with an A label command a 7.0 % premium compared to
an otherwise similar dwelling with a C label, while B-labelled dwellings command a 1.9 % premium. This suggests
F IGURE 1.27 S OURCE: CHEGUT , EICHHOLTZ AND HOLTERMANS "E NERGY EFFICIENCY AND ECONOMIC
V ALUE IN A FFORDABLE HOUSING " (2016)
that the average C-labelled home in the sample would sell for approximately €10,800 more were it to be A-
labelled. The increase in transaction value for a B label is just over €2,900.
Dwellings bought by households with higher incomes are valued at an additional premium of almost 1%.
Within the labelled sub-sample, households with a relatively high income pay a 4.6 % premium for the most
82 D. Brounen and N. Kok “On the economics of energy labels in the housing market” (2011)
83 A. Chegut, P. Eichholtz, R. Holtermans “Energy Efficiency and Economic Value in Affordable Housing” (2016)

energy-efficient homes, while that premium is only 1.6 % for middle-income families and even lower if they
have higher wealth. Demographics do not influence premiums for energy-efficient dwellings.
A later study by Tilburg and Maastricht universities in 2021 already showed that a red energy label yields less
than a green label house when sold84. In 2022 the Netherlands Enterprise Agency estimated an average €30,000
premium for a C label compared to a comparable house with G class efficiency (7.9% of the selling price)85.
A new study by the Netherlands Enterprise Agency in 202386 found that the gross effect of an improved energy
label on property value amounts on average to a 7.2 % increase compared to the same house with the old label.
F IGURE 1.28 S OURCE: N ETHERLANDS E NTERPRISE AGENCY (NVM) “D E WAARDE VAN HET
ENERGIELABEL – INVESTEREN IN DUURZAAMHEID LOONT STEEDS MEER ” 2022
The value of a home that improves from G to C saw an average increase of 8.3 % in the first quarter of 2023.
In the case of a jump from C to A, the house is worth an average of 5.4 % more.
These values have increased compared to the last quarter of 2022, when a jump from G to C brought an increase
of 6.9 % in property value, while a jump from C to A was valued at 4.5 %.
F IGURE 1.29 I NCREMENT OF HOUSE VALUE BASED ON ENERGY LABEL IMPROVEMENT PER QUARTER . S OURCE: NVM
E FFECT VAN BETER ENERGIELABEL OP WONINGWAARDE GROTER DAN OOIT (2023)
84 Tilburg and Maastricht University “Rood energielabel doet steeds meer pijn bij woningverkoop” (2021)
85 NVM “De waarde van het energielabel – investeren in duurzaamheid loont steeds meer” (2022)
86 NVM “Effect van beter energielabel op woningwaarde groter dan ooit” (2023)

F IGURE 1.30 PERCENTAGE INCREASE IN THE HOME VALUE FOR ALL THE DIFFERENT LABEL JUMPS . S OURCE:
NVM E FFECT VAN BETER ENERGIELABEL OP WONINGWAARDE GROTER DAN OOIT (2023)
The increase in value decreases for homes built more after 1975, as shown in the graph below.
F IGURE 1.31 I NCREASE IN VALUE FOR ENERGY LABEL JUMP FROM C TO A PER CONSTRUCTION YEAR .
S OURCE: NVM EFFECT VAN BETER ENERGIELABEL OP WONINGWAARDE GROTER DAN OOIT (2023)
At a geographical level, property value is rising the most in the province of Groningen, where an improvement
from C label to A results in a value increase of 8.7 % (first quarter of 2023). Similar increases are observed in
Friesland and Limburg.
Increments in value are the smallest in Utrecht, Flevoland and North Holland.

F IGURE 1.32 ADDED VALUE IN LABEL JUMP FROM C TO A PER REGION . S OURCE: NVM E FFECT VAN
BETER ENERGIELABEL OP WONINGWAARDE GROTER DAN OOIT (2013)
1.3.6 Effects on the Italian market

In Italy, an EPC has been mandatory for house transactions since 2009, so there are few studies on the effect of
EPC on the Italian real estate market compared to other European countries.
Fregonara, Rolando, Semeraro and Vella (2014) 87 analysed 577 residential listings in the city of Turin. The study
found evidence of a strong relationship between efficiency and listing price only for F-rated homes. The possible
cause of the weak relationship between price and high energy levels is that the energy level was not yet taken
into account by real estate agencies in listing prices.
This was due to weak interest from potential buyers and final users, who at the time were not yet considering the
lower maintenance costs associated with a higher energy label. Since the apartments’ energy level seems not to
have a direct influence on listing prices, the owners were not incentivised to invest in refurbishment actions.
Copiello (2015)88 performed a case study in Turin focusing on one refurbished affordable apartment building, in
which environmental performance had been increased during the renovation. The author was able to prove that
rents in the building had gone up substantially, leading to a satisfactory financial return on the investment, thus
providing a market-based incentive for improvements in environmental performance in affordable housing.
Later, Tajani, Morano Di Liddo and Doko (2019)89 investigated the economic benefits associated with energy
retrofit interventions. They examined the sustainability of energy efficiency interventions using the Superbonus
110 % mechanism90 in provincial capitals and main urban areas and selling prices of residential, commercial and
office properties. The findings show that the investment is only financially viable when the refurbishment costs are
covered by the Superbonus.
The findings further indicate that when refurbishment costs are covered by the Superbonus, the investment is
financially viable for all Italian provincial capitals. However, if the investor bears the costs entirely, the
87 E.Fregonara, D.Rolando, P.Semeraro, M.Vella “The impact of Energy Performance Certificate level on house listing prices. First evidence
from Italian real estate” (2014)
88 S.Copiello “Achieving affordable housing through energy efficiency strategy” (2015)
89 F.Tajani,P. Morano,F. Di Liddo, E. Doko “A Model for the Assessment of the Economic Benefits Associated with Energy Retrofit Interventions:
An Application to Existing Buildings in the Italian Territory” (2022)

90 DECRETO-LEGGE 19 maggio 2020, n. 34 Misure urgenti in materia di salute, sostegno al lavoro e all'economia, nonche' di politiche sociali
connesse all'emergenza epidemiologica da COVID-19. (20G00052)

operation is financially viable for 82 % of central areas, 63 % of semi-central areas, and 57 % of peripheral
areas in the selected cities.
F IGURE 1.0.133 S OURCE: "A MODEL FOR THE A SSESSMENT OF THE ECONOMIC BENEFITS ASSOCIATED WITH E NERGY
R ETROFIT I NTERVENTIONS : A N A PPLICATION TO EXISTING BUILDINGS IN THE I TALIAN T ERRITORY ” (2022)
The study also evaluates the break-even incentive threshold required for minimum convenience in the absence of
the Superbonus. It identifies that 21.5 % of the areas analysed can sustain the investment without the incentive,
while 1.8 % require an incentive equal to or higher than 110 %, and 76.7 % need an incentive of less than 110 %.
The results show that provincial capitals in northern and central Italy are more financially attractive for energy
retrofit interventions compared to those in southern Italy and the islands.
Bisello, Antoniucci and Marella (2020) 91 analysed a cross-sectional housing dataset in Bolzano, which is
characterised by its compact urban form and local environmental awareness. In this context, a price premium of
6 % on moving from the worst (G) to the best (A) energy efficiency class was observed.
Finally, the Iuav University of Venice developed relevant research on three sample cities: Bergamo, Mestre and
Padua for the REbuild 2023 Observatory92. The study concluded that spending to carry out energy retrofits is
associated with a 40 % growth of the real estate asset value (with the move from G to A). Conversely, not carrying
out any retrofit means a loss of the same percentage in terms of market listing.
Depending on whether a building is in the centre or in the suburbs, the change in value between E and D is around
5 % to 6 %, but rises between 14 % and 18 % when moving from G to D. Premiums increase by up to 30 % and
40 % when moving from G to A.
1.3.7 Effects on the Belgian market
The 2013 EC report Energy performance certificates in buildings and their impact on transaction prices and rents
in selected EU countries93 investigates the effects of EPC on the Belgian real estate market. The analysis of 26,000
property listings has shown a clear relationship between a property’s energy efficiency, as measured by its CPEB
performance, and its advertised price or rent.
91 A. Bisello, V. Antoniucci, G. Marella “Measuring the price premium of energy efficiency: A two-step analysis in the Italian housing market”
(2020)
92 REbuild 2023: l’efficienza energetica della casa ne aumenta il valore fino al 40% (2023)
93 European Commission (DG Energy) “Energy performance certificates in buildings and their impact on transaction prices and rents in selected
EU countries” (2013)

Energy performance is given by the CPEB metric, kWh/m², the ratio between the characteristic annual primary
energy consumption and the useable floor area. For correspondence with energy classes, please refer to the table
below (for the Flemish and Walloon conversion table, see paragraph 2.8).
F IGURE 1.34 S OURCE: C ERTIB RU THE E NERGY P ERFORMANCE OF BUILDINGS
The majority of the listings are in Flanders, where analysis of the market showed that an improvement of 100 points
in the CPEB metric (termed here a “major improvement” in energy efficiency) is associated with a 4.3 % higher
price, on average. The rent effect was smaller but still statistically significant: an improvement of 100 points in the
CPEB metric is associated with a 3.2 % higher rent.
Results for Wallonia and Brussels, based on significantly smaller sample sizes, were in line with those for Flanders.
A major improvement in energy efficiency is associated with a 5.4 % higher price in Wallonia and a 2.9 % higher
price in Brussels.
In the rental market, a similar improvement in energy efficiency is associated with a 1.5% higher rent in Wallonia
and a 2.2 % higher rent in Brussels.
While the price effect in Wallonia is larger than that for Flanders, it is also less precisely estimated.

The Brussels-Capital region appears to be systematically different. This may reflect the higher prices in the capital:
if the energy savings associated with a dwelling of 150 m2 are a certain amount, this will be a smaller proportion
of the price in Brussels, where such dwellings command a higher value.
F IGURE 1.35 S OURCE: ENERGY PERFORMANCE CERTIFICATES IN BUILDINGS AND THEIR IMPACT ON
TRANSACTION PRICES AND RENTS IN SELECTED EU COUNTRIES (2013)
1.4 Conclusions
The ECP labels have been fully implemented across most member states and have become decision drivers in
purchases. The effect of certifications on price has been investigated heterogeneously in each country, so a precise
estimate of the premium commanded by higher labels depends on the specific characteristics of the local market.
Although factors such as scarcity of supply can hamper the influence of ECP on listing prices, it is also true that more
energy-efficient dwellings are consistently valued at a higher price by the market, as opposed to comparable
properties with a lower energy label.
Generally speaking, prospective energy savings and improved comfort granted by energy-efficient dwellings are
capitalised in selling prices, with ECP improvements being positively correlated with listing premiums.

Section 2: Savings Projections in time
Elisa Yoshitake
“Despite the strong fluctuations of energy prices, this section aims at offering a
long-term estimation future energy savings generated by a HP installation”
Simon Willemarck
Development Engineer
2.1 Introduction
One of the recurring arguments when advocating for the installation of a heat pump is the lower anticipated energy
consumption, which translates into lower bills and therefore increased savings for households. Such savings, as we
have seen in the previous section, are often capitalised in the reselling price of the property. The premium paid for
the increased energy efficiency is a constant in several EU member states, although it varies in quantity depending
on the country and other geographical and architectural properties.
In this section, we will quantify the energy savings generated over 10 years by the installation of a heat pump in
a generic house compared to a natural gas boiler.
For the purpose of this exercise, we have built on the Eurostat data as a baseline for the energy household price
estimate and forecast. To estimate the effect of carbon taxation, we have used the results of the recently published
study “Modelling the socioeconomic impact of zero carbon housing in Europe final”(2022) 94 by Cambridge
Econometrics and the European Climate Foundation and its update (rerun of the same study) published in 202395.
2.2 Building the model

2.2.1 Estimating a baseline for EU energy prices
For energy price estimation, we have used historical end-consumer prices as a baseline. We have relied on the
electricity prices components for household consumers96 (annual data) and the gas prices components for household
consumers97 (annual data) from the Eurostat Data Browser to establish a baseline for future calculations.
2.2.1.1 Baseline prices
We have modelled the average European cost of electricity98 and gas99 taking into account the volatility that has
characterised the markets in the last three years. We operated under the assumption that 2022 prices represent
outliers in both series and are a consequence of the Russian invasion of Ukraine rather than an expression of market
trends. For this reason, we have substituted the 2022 yearly price with the average of the yearly prices of 2018,
2019, 2020, 2021 and 2022 in both series.
94 Cambridge Econometrics and The European Climate Foundation “Modelling the socioeconomic impact of zero carbon housing in Europe
final” (2022 – 2023)
95 Cambridge Econometrics and The European Climate Foundation “Modelling the socioeconomic impact of zero carbon housing in Europe
final” (2022 – 2023)

96 Eurostat Electricity prices for household consumers– second half of 2022
97 Eurostat Natural gas prices for household consumers – second half of 2022

The trendline and forecast resulting from the new series are more in line with the market trends observed in the
past years and less skewed by the effect of the war, while reflecting the price shift caused by 2022.
The graphs below show the historical (2006-2022) annual energy prices for electricity and gas as well as the
forecast 10-year series (2022-2032) using the historical series as is (including the 2022 value, deep green line)
and using the corrected series (where the 2022 datapoint is mitigated by the previous four years, light green line).
The forecast values based on the corrected historical values will serve as a baseline for energy price estimation in
the model.
EU27 electricity historical prices and forecast

(€/kWh)
0,310
0,268
2032; 0,273
0,260
2030; 0,265
0,229
2025; 0,244
0,210
0,160
0,110
2005 2010 2015 2020 2025 2030 2035
Historical values EU27 Forecast EU27 Forecast - Averaged 2022 value
F IGURE 2.0.1 SOURCE: OWN CALCULATIONS BASED ON EUROSTAT ANNUAL DATA

EU27 Baseline electricity prices - Corrected series with forecast
(€/kWh)
0,290
0,270 2032; 0,273

2025; 0,244
0,250 2021; 0,229 2030; 0,265
2019; 0,217 2027; 0,252
0,230 2013; 0,205
2022; 0,228
0,210
0,190 2007; 0,168 2020; 0,213

2011; 0,187
0,170
0,150 2009; 0,167

0,130
0,110
2005 2010 2015 2020 2025 2030 2035
EU27 Linear (EU27)
F IGURE 2.2 SOURCE : OWN CALCULATIONS BASED ON EUROSTAT ANNUAL DATA
EU27 gas historical prices and forecast

(€/kWh)
0,110
0,100
0,100
0,090
0,080 2032; 0,079

0,071
0,070
2030; 0,077
0,060 2025; 0,074
0,050
0,040
0,030
0,020
2005 2010 2015 2020 2025 2030 2035
Historical values EU27 Forecast EU27 Forecast - Averaged 2022 value

EU27 Baseline gas prices - Corrected series with forecast
(€/kWh)
0,110
0,100
0,090
2032; 0,079
0,080 2013; 0,072 2019; 0,070 2022; 0,075
2007; 0,062
0,070
2028; 0,076
0,060 2020; 0,067 2025; 0,074
2010; 0,059 2017; 0,065
0,050
0,040
0,030
0,020
2005 2010 2015 2020 2025 2030 2035
EU27 Linear (EU27)
2.2.2 Estimating the effects of ETS and carbon taxation on the forecast prices
We considered the effects of a carbon tax on top of the ETS 100 for industry to facilitate decarbonisation, and
included the ETS2 for consumers. To determine the carbon penalty price for electricity, we have estimated the
evolution of CO2 intensity of electricity generation in the EU. We relied on the CO2 intensity of electricity generation
estimations made by the Global Energy Outlook (EnerOutlook) 101 software and calculated the mid-points through
linear interpolation.
CO2 intensity levels in the EU follow a decreasing trend over time (dotted line), under the assumption that the use
of renewable sources will surge in the future and progressively substitute fossil fuels.
Evolution of CO2 in the EU - Intensity levels of electricity generation

[kg/kWh]
0,300
0,239
0,250
0,213
0,186
0,200 0,175
0,164
0,154
0,143
0,150 0,132 0,126 0,120
0,100
0,050
0,000
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
EU27 Linear (EU27)
F IGURE 2.0.4 S OURCE: OWN CALCULATIONS BASED ON ENERO UTLOOK DATA (EU)
100 The European Emission Trading System (EU ETS) sets a cap on the total amount of greenhouse gases that participants can emit, by assigning
each a quota. Quotas can be traded between participants with different levels of emissions. Link to the EC webpage about EU ETS
101 Global Energy and Climate Outlook - CO2 intensity of electricity generation (Enerdata)

For gas, we assumed the emission factor of natural gas to be constant and set at 0.198 kg CO2/kWh gas102.
Gas carbon tax and ETS2 Consumer price [€/tCO2]

600,0
500,0
400,0
300,0
200,0
100,0
0,0
2015 2020 2025 2030 2035 2040 2045 2050 2055
Carbon tax ETS2 Consumer price
F IGURE 2.0.5 S OURCE: OWN CALCULATIONS BASED ON C AMBRIDGE E CONOMETRICS DATA
Electricity carbon taxation and ETS2 Consumer price [€/tCO2]

400,0
350,0
300,0
250,0
200,0
150,0
100,0
50,0
0,0
2018 2023 2028 2033 2038 2043 2048 2053
Carbon tax ETS2 Consumer Pirce
F IGURE 2.0.6 S OURCE: OWN CALCULATIONS BASED ON C AMBRIDGE AND E NER OUTLOOK DATA
With the EU Reference 2020 scenario103, the ETS2 Consumer price has been added to the baseline prices to
estimate end user prices. Carbon taxation has been added too. As explained, the carbon penalty has been
computed based on the intensity levels of electricity and gas over the years and the carbon tax penalty104 per ton
of CO2 produced.
The graphs below plot the carbon taxation and ETS Consumer prices for both natural gas and electricity.
Taking the above into consideration, we have generated the final energy price forecast (see graphs below).
102 Cambridge Econometrics and The European Climate Foundation (2022 – 2023); European Commission “Excel files for MIX-CP scenario”
103 EU reference scenario 2020 - Energy, transport and GHG emissions : trends to 2050
104 Amounts provided by Cambridge Econometrics, originally computed for the paper “Modelling the socioeconomic impact of zero carbon
housing in Europe final” (2022 – 2023)

EU27 energy price estimation - Including ETS and carbon taxation
[€/kWh]
0,450
0,400
0,350
0,300
0,250
0,200
0,150
0,100
0,050
0,000
2020 2025 2030 2035 2040 2045 2050 2055
Gas prices incl ETS2 and CT Electricity prices incl ETS2 and CT
F IGURE 2.0.7 S OURCE: OWN CALCULATIONS

Since the scope of our study is restricted to a 10-year threshold, the price projections reported in this paper do not
fully reflect the effect of ETS Consumer price increase and carbon taxation effect, both of which become more
prominent after 2035. The graph below shows the energy prices forecast for the years 2023-2032.
EU27 energy price estimation - Including ETS and carbon taxation

[€/kWh]
0,300
0,250 0,27 0,28

0,26 0,26 0,27
0,25 0,25
0,24 0,24
0,24
0,200
0,150
0,08 0,08 0,08 0,09

0,100 0,07 0,07 0,07 0,08 0,08 0,08
0,050
0,000
2021 2023 2025 2027 2029 2031 2033 2035
Gas prices incl ETS2 and CT Electricity prices incl ETS2 and CT

It is important to remember, in interpreting the data in this paper, that the forecast energy prices are driven by
the underlying assumptions in the model and are subject to a great degree of uncertainty in the evolution of the
energy market and global economy. It is imperative to keep in mind that these are simulations, not predictions.
2.2.3 Estimating the standard house

Once we have forecast energy prices, we set the specifications of the standard house to calculate consumption,
running costs and therefore energy savings.

To estimate energy savings over a period of 10 years we compared the running costs of underfloor heating with
a heat pump and the running costs of radiators powered by a gas boiler.
Energy consumption per outside temperature is defined as follows:
Estimated energy input

Td 10,000 kWh home (thermal output) – underfloor heating
HP (ERGA105) Gas boiler
°C kWh (el) kWh (gas)
+7 2,395 11111.11
For the gas boiler, we took into consideration the following characteristics:
INPUT
Gas boiler efficiency [%] 90
Yearly space heating demand [kWh] 10,000
Yearly gas energy [kWh] 11111.11
Emission factor [kg C02/ kWh gas] 0.198
2.2.2 Estimated running costs and energy savings

Based on the estimated energy input and technology efficiency, and the energy prices over the forecast period,
we have estimated the running costs of heating using a heat pump (with underfloor heating) and a gas boiler
(through radiators).
The heating costs associated with the gas boiler are higher than the costs generated by the heat pump.
EU27 average - Yearly running costs

€ 1.200
€ 983
€ 1.000
€ 902 € 928
€ 872 € 881 € 891
€ 817 € 826 € 835
€ 807
€ 800
€ 600 € 653 € 669

€ 620 € 630 € 640
€ 585 € 595 € 610
€ 564 € 574
€ 400
€ 200
€0
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Gas boiler running costs Heat Pump running costs
105 Daikin ERGA Low-temperature Heat Pump (Refrigerant Split)

The graph below plots the yearly savings generated by the heat pump (compared to the gas boiler) and the trend
line of the series (dotted line). It is clear that, under the assumptions of the model, the heat pump generates positive
savings that increase over the forecast period of 10 years.
EU27 Yearly savings generated by the heat pump
€ 340
€ 320 € 314
€ 300
€ 280 € 275
€ 261 € 261 € 261 € 261

€ 260
€ 244 € 242 € 241 € 240

€ 240
€ 220
€ 200
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
EU Yearly savings Linear (EU Yearly savings)
F IGURE 2.0.10 S OURCE: O WN CALCULATIONS
The table below shows the expected energy savings (running costs of heat pump vs boiler) deriving from the use
of a heat pump. The table below summarises the findings.
EU27 average
10,000 kWh home
Yearly running cost Yearly running cost Cumulative
Year Energy savings
heat pump gas boiler Savings
2023 563,82 € 807,44 € 243,62 € 243,62 €
2024 574,24 € 816,50 € 242,27 € 485,88 €
2025 584,58 € 825,66 € 241,08 € 726,96 €
2026 594,98 € 835,06 € 240,08 € 967,04 €
2027 610,21 € 871,69 € 261,49 € 1.228,53 €
2028 620,25 € 881,48 € 261,23 € 1.489,76 €
2029 630,28 € 891,48 € 261,20 € 1.750,95 €
2030 640,28 € 901,71 € 261,43 € 2.012,39 €
2031 652,69 € 928,14 € 275,45 € 2.287,84 €
2032 668,54 € 982,59 € 314,06 € 2.601,90 €
The estimated energy savings are always positive and constant over time. Cumulative savings over a 10-year
period (2023-2032) amount to €2,602 in 2032.

Running costs and cumulative savings generated by heat pump
EU27
€ 1.200 € 3.000
€ 2.602
€ 1.000 € 2.500
€ 2.288
Gas boiler running costs
€ 800 € 2.012 € 2.000
€ 1.751
€ 600 € 1.490 € 1.500
Heat pump running costs

€ 1.229
€ 400 € 967 € 1.000
€ 727
€ 200 € 486 € 500
€ 244
€0 €0
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Gas boiler running costs Heat pump running costs EU Cumulative savings
F IGURE 2.12 S OURCE: O WN CALCULATIONS
2.5 Conclusions
Under the market assumptions used in this model, installing a heat pump to substitute a natural gas boiler as a
heating and domestic hot water system is expected to generate energy savings over the forecast 10-year period.
Savings increase over time and amount to an estimated value of €2,602 in 2032. These findings assume a
renovation rate and amplification effect coherent with the current European rate, then implementation of carbon
taxation from 2023 to facilitate decarbonisation, and constant market shares of technologies with eventually a
phase-out of non-condensing boilers.
It is important to remember, in interpreting the data in this paper, that the forecast energy prices are driven by
the underlying assumptions in the model, and are subject to a great degree of uncertainty in the evolution of the
energy market and global economy. It is therefore imperative to keep in mind that these are simulations, not
predictions.
To share your comments with the authors or for additional information, email [email protected]

Section 3: Ban on existing technologies
Baris Solmaz
“This section paper was put together to help you choose your next heating
equipment at home, as a future proof one”
3.1 Introduction
Governments – specifically in Europe – are on a journey towards their net zero ambitions. The number of countries
announcing pledges to achieve net zero emissions in the coming decades continues to grow. However, to reach
these long-term targets they must set measurable short-term milestones.
The ambition of the International Energy Agency (IEA) 106 is for all countries to implement zero-carbon-ready
building codes by 2030. A zero‐carbon‐ready building is highly energy efficient. It uses renewable energy directly
or an energy supply that will be fully decarbonised by 2050, such as electricity or district heat. These buildings
will become zero-carbon buildings by 2050, without further adaptations. This radical change in building heating
systems, which is part of the objective of achieving climate neutrality, is based on the following observations:
reducing heating needs by insulating buildings is essential; heating networks will have an important role to play;
and renewable heat sources such as aerothermal or geothermal heat pumps, or solar thermal and recovery must
be favoured. Heat pumps are three to five times more efficient 107 than gas boilers, according to the International
Energy Agency.
The European Commission’s ambition108, indicated in its REPowerEU plan of May 2022, is a complete ban on the
sale of standalone fossil fuel boilers in 2029 via a revision of the Ecodesign regulation. This is in line with the
recommendations of the IEA, which proposed a worldwide ban on new fossil boilers from 2025 in its report Net
Zero by 2050109, published in May 2021.
F IGURE 3.0.1 FOSSIL BAN SITUATION IN THE EUROPEAN COUNTRIES UNDER SCOPE .
S OURCE: O WN
106 IEA “Net Zero by 2050: A Roadmap for the Global Energy Sector”(2021)
107 International Energy Agency “The Future of Heat Pumps” (2022)
108 Communication from the Commission to the European Parliament, the Council, the European Economic and social Committee and the
Committee of the Regions Eu 'save energy' 2018


3.2 Germany
Germany is the fourth-largest economy in the world and home to leading producers of heat pumps 110. According
to government figures, about 80 % of heating in Germany’s buildings is currently generated by fossil fuels. Nearly
half of the country’s households have gas heating, while about 25 % use oil-powered systems111.
On the 8th of September 2023, the German Bundestag approved the revision of the German Buildings Energy Act
(Gebäudeenergiegesetz, GEG), introducing a minimum share of 65% renewable energies for heating in buildings.
For the 65% provision to apply municipalities must publish a heating plan, showcasing the available options for
renewable energy supply, before 2026 or 2028, depending on the number of inhabitants (see table below):
T ABLE 1 S OURCE: DAIKIN ANALYSIS
% of the total
Legend Size of municipality Final deadline Population
population
1 above 100,000 inhabitants June 30, 2026 26.576.802 32%
2 between 10,000 and 100,000 inhabitants June 30, 2028 35.470.062 43%
3 below 10,000 June 30, 2028 21.190.260 25%
Population in German municipalities
F IGURE 0.2
3.2SSOURCE
OURCE:: DDAIKIN
AIKIN A
ANALYSIS
NALYSIS
The gas/oil boiler ban has been postponed to 2028 (it was initially foreseen for 2024), as the installation of fully
fossil fuel boilers will still be allowed until the heating plans are not in place. Boilers may be operated with fossil
fuels until the end of 31 December 2044 at the latest.
110 Bundesregierung.de “Climate-friendly heating: new Building Energy Act to be implemented”(2023)

111 Wohnsituation privater Haushalte - Fachserie 15 Sonderheft 1 - 2018 (destatis.de)

For new buildings in New Development Areas, the 65% renewable energy heating constraint is valid from 2024.
After the deadlines in 2026 or 2028, new gas heating systems may only be installed, if they can be converted to process
100% hydrogen. In addition, the building must be located in a network area that is to be converted to hydrogen in
accordance with a heating plan and released by the Federal Network Agency
New oil heating systems may only be installed if they run on bio-oil, or they are combined with a heat pump as a hybrid
system.
After the deadlines in 2026 or 2028, gas boilers can in principle continue to be installed if they are operated with
65 % green gases (biomethane, or green or blue hydrogen).
Replacement market:
F IGURE 3.4 S OURCE : D AIKIN ANALYSIS

Until 2028 (municipalities > 100k habitants)/2026 (municipalities < 100k habitants), gas boilers can be replaced
with 100% oil/natural gas boilers. After 2028 (/2026), the new heating system must be powered by 65%
renewable sourced energy (RES).
From 2029 onwards, heating systems must use an increasing percentage of RES (see image above).
New built market:
From the 1st January 2024, heating systems installed must be powered by 65% RES. The obligation applies to all
new buildings for which the building application is submitted from January 2024 in a new development area112.
For new buildings outside of new development areas, the same rules as in the replacement market apply.
A transition period is foreseen in selected cases:
• A one-time installation of a fossil fuel-operated heating system, including potentially used ones, is allowed
if a heating system complying with the 65% renewable energy requirement is planned to be installed
within 5 years after the heating system's failure.
• If a connection to a district heating network is not yet feasible, the property owner must commit to
connecting to the district heating network within 10 years after the heating system's failure (no later than
December 31, 2034). In the meantime, they can use a heating system that does not meet the 65%
renewable energy requirement.
• If a conversion to hydrogen is planned before December 31, 2034, the building owner may install a gas
heating system capable of burning both gas and hydrogen. Starting from 2030, they are bound to source
50% green gases (biomass/hydrogen), and from 2035 it increase to 65%.
• For the conversion of individual room heating systems and room heating appliances, a decision period of
5 years after the failure of the first individual room heating system in a building is granted to allow for
the planning of centralization of the heating system. If the centralization of the heating system is chosen,
property owners are given an additional 8 years to implement this centralization.
Before Federal laws were introduced, four German states (Baden-Württemberg, Hessen, Niedersachsen and
Schleswig-Holstein) implemented heat planning initiatives, mandating the most populated municipalities in the Land
to publish heat plans (see table below). Lower Saxony extended the obligation to the whole Region.
112 A new development area is an area of a city or municipality where the development plan allows the construction of residential buildings .

FINAL DEADLINES (State & Federal law) Tab.1
Land Municipalities Population
Baden-Württemberg 1.101 11.124.642
no obligation 841 3.400.206

31/12/2023 103 5.615.165
30/06/2028 157 2.109.271
Hessen 422 6.295.017
no obligation 253 1.368.731

30/06/2026 5 1.529.506
30/11/2026 54 1.874.593
30/06/2028 110 1.522.187
Niedersachsen (Lower Saxony) 941 8.027.031
no obligation - -
30/06/2026 8 1.564.697
31/12/2026 933 6.462.334
Schleswig-Holstein 1.106 2.922.005
no obligation 1.015 1.008.686

31/12/2024 34 1.324.056
31/12/2027 42 384.306
30/06/2028 15 204.957
Grand Total 3.570 28.368.695
F IGURE 3.5 S OURCE : D AIKIN ANALYSIS

Thanks to local initiatives, in 2026, 60% of the German population will be under the new heating law compared
to 40% planned by the federal law.
3.3 Belgium
3.3.1 Flanders
To realise its energy and climate objectives, Flanders is committed to improving the energy efficiency of its building
stock, increasing the share of renewable sources in the energy supply, and improving energy infrastructure 113. A
2022 decree established a ban on oil boilers in new buildings and replacing existing oil boilers with new ones 114.
New connections to the gas network for large new building projects have been prohibited since 2021. From 2025,
no new connections to the gas distribution network will be permitted. (Replacing a fuel oil boiler means replacing
the entire installation, and not replacing individual parts of an existing heating installation, such as the burner.)
3.3.2 Brussels
In Brussels, there are bans on coal and oil heating installations, from September 2021 and June 2025
respectively115. From 2025, new buildings will not be permitted to use fossil fuel heating. From 2030, this will also
apply to buildings undergoing major renovations.
3.3.3 Wallonia
There is currently no such ban foreseen in Wallonia.
113 Voorstel van decreet tot wijziging van artikel 4.1.16/2 van het Energiedecreet van 8 mei 2009
114Belgische Federatie der Brandstoffenhandelaars vzw and Others and Lamine v. Flemish Government - Climate Change Litigation
(climatecasechart.com)
115 Brussels brings together air, climate and energy in an integrated vision: COBRACE and the PACE regional plan | Citizen - Brussels
Environment (environnement.brussels)

3.4 France
In France, heat production accounts for half of energy consumption and is still largely based on fossil fuels 116.
France is highly dependent on fossil gas, which, in addition to being bad for the planet, is expensive. Due to a lack
of major deposits, France, even if it is learning to do without Russian gas, imports 98 % of its gas needs 117. The
objective is to replace 1 million individual oil-fired boilers by the end of 2023 and 3 million in 2028118. Installation
of new oil-fired boilers has been banned119 since July 2022. There is an ongoing consultation120 on the ban of gas
boilers that will be finalised by the end of July 2023. If it comes into effect, from January 2024 it will only be
possible to install full electric heat pumps or hybrid heat pumps in new buildings. The consultation expects an end
to the use of fuel oil boilers by 2030121.
The initial ban on oil boilers was a result of Decree No. 2022-8 of 5 January 2022, relating to the minimum
environmental performance from the installation of heating or domestic hot water systems in a building. The decree
sets a CO2 threshold of 300 g CO2/kWh for the installation of new heating systems, which prohibits the installation
of new oil-fired boilers since 1 July 2022.
Despite a first consultation suggesting lowering the threshold to 150 g CO2/kWh, and therefore prohibiting the
installation of new boilers using natural gas and LPG, the French Government has decided not to permanently ban
the gas boilers for the time being122.
3.5 United Kingdom

The UK government plans to implement a new initiative known as the Future Homes and Building Standard (FHS),
which aims to guarantee that newly constructed residences have energy-efficient heating systems and are prepared
for future sustainability. As part of a roadmap leading to the FHS, various measures will be implemented to minimise
energy consumption and decrease greenhouse gas emissions in new buildings.
In September 2023, the Government pushed back the end date for new and replacement fossil fuel heating
installations in existing properties in England to 2035 including an exemption for off-gas grid properties with no
suitable low-carbon heating solution.
Despite this setback, however, the new legislation maintains that new homes will not be built with fossil fuel heating,
such as a natural gas boiler. Considering the low penetration of district heating (heat networks currently meet
approximately 2% of heat demand in the UK123), it is expected that heat pumps’ uptake will increase in new homes
under the FHS.
The introduction of the FHS will ensure that from 2025, an average home will produce at least 75 % lower CO 2
emissions than one built to current energy efficiency requirements. The legislation will considerably improve the
energy efficiency standards for new homes in the long run. In fact, homes built under the Future Homes Standard
will be zero-carbon ready:
• From 2025, new homes built to the Future Homes Standard will have carbon dioxide emissions at least
75% lower than those built to current Building Regulations standards.
• Introducing the Future Homes Standard will ensure that the homes are more environmentally friendly and
affordable for consumers to heat, with low carbon heating and very high fabric standards.
• All homes will be ‘zero carbon ready’, becoming zero carbon homes over time as the electricity grid
decarbonises, without the need for further costly retrofitting work. 124
116 International Energy Agency (IEA) “France 2021 Energy Policy Review” (2021)
117 Commission de Régulation de l’Énergie – Natural gas network
118 Ministére de la transition écologique et solidaire “Stratégie francaise pour l’énergie et le climat - Programmation pluriannuelle de l’énergie
2019-2023; 2024-2028” (2019)
119 Premiére Ministre; Secrétariat general á la planification écologique “La planification écologique dans les bâtiments – 12 jiun 2023 – Réunion
de travail sur la renovation énergétique

120 Gouvernement Francaise – Décarbonation des Bâtiments Ce qui va changer en 2024
121 Gouvernement Francais - Dossier de concertation “Accélérer la decarbonation du secteur du bâtiment” (2023)
122 8 p.m.: interview with President Emmanuel Macron on TF1 and France 2 (24th sept 2023)
123 Department for Business, Energy and Industrial Strategy “Opportunity areas for district heating networks in the UK - National
Comprehensive Assessment of the potential for efficient heating and cooling”(2023) pg 6

124 Ministry of Housing, Communities and Local government: “The Future Homes Standard: 2019 Consultation on changes to Part L
(conservation of fuel and power) and Part F (ventilation) of the Building Regulations for new dwellings”

The proposed notional building specification for FHS states low carbon heating as a heating appliance (see image
below), which can be easily complied with using a heat pump.
F IGURE 03.6 S OURCE: M INISTRY OF HOUSING, COMMUNITIES AND LOCAL GOVERNMENT : “THE F UTURE HOMES S TANDARD :
2019 CONSULTATION ON CHANGES TO PART L ( CONSERVATION OF FUEL AND POWER ) AND PART F (VENTILATION ) OF THE
BUILDING REGULATIONS FOR NEW DWELLINGS ” PG 18
F IGURE 3.7 S OURCE : M INISTRY OF HOUSING , COMMUNITIES AND LOCAL GOVERNMENT : “THE FUTURE HOMES
S TANDARD : 2019 CONSULTATION ON CHANGES TO P ART L (CONSERVATION OF FUEL AND POWER ) AND P ART F
(VENTILATION ) OF THE BUILDING REGULATIONS FOR NEW DWELLINGS ” PG 18
The introduction of a primary energy matrix as one of the pass criteria to meet the building regulation part L makes
the case for heat pumps stronger for the new build market under FHS. The reason is that heat pumps provide
around three times the amount of heat compared to the electricity used thus significantly reducing the primary
energy demand, e.g., the fuel that goes into the power station to generate the electricity used in a home. This
represents an incentive for contractors to use heat pumps as heating technology to meet the primary energy pass
criteria under FHS.
As mentioned earlier, the Government has set the deadline for the fossil fuel heating ban in England in 2035,
although an exemption is foreseen for off-gas grid properties where there is no suitable low-carbon heating solution.
In Scotland, the government has proposed a ban on gas boilers in all new buildings from April 2024. If passed into
law, it will apply to both residential and business properties.

3.6 Netherlands
The Dutch government has presented a package of climate measures which includes the ban of new installations of
fossil fuel-based heating systems starting from 2026 and mandated the use of (hybrid) heat pumps or connections
to heat networks, known as district heating. The government maintains hybrid heat pumps can achieve an average
of 60 % savings on natural gas consumption, as they run on electricity for most of the year 125. Fully electric heat
pumps will be specified for well-insulated homes, using no natural gas.
According to new proposals, when households replace their central heating systems, they will have to switch to a
more sustainable alternative. Hybrid heat pumps will become the standard choice; however, fully electric heat
pumps or a connection to a heat network will also be possible.
This change in the “Decree on construction works in the living environment” (Building Decree) is expected to enter
into effect on 1 January 2026.
There are a few exceptions126: There will be an exception for situations where the standard cannot be properly
applied, for example, because of noise requirements or necessary adjustments to the home, where the heating
system leads to disproportionate costs, or if a collective district solution (such as a heat network) will be realised
within 10 years. Due to complex permit processes, protected buildings are exempted in advance for the time being.
The same applies to apartments because of points of attention in terms of noise and spatial integration.
Please note: The effective date of this measure is not yet final. Entry into force is subject to its passing through the
upper and lower houses of the Parliament.
3.7 Italy
On 13 June 2022, the obligations listed in Annex 3 of Legislative Decree 199/2021127 were triggered and the
share of 60 % renewable energies became mandatory in new buildings. The first renewable legislative decree
was approved in 2011 with a 20 % obligation and then updated three times to the last decree. The obligations
apply to new buildings, existing buildings when net useful volume is increased more than 15% and those undergoing
major renovation. Buildings undergoing a major renovation are primarily existing buildings that have a useful area
of more than 1,000 square metres and are subject to complete renovation; or are subject to demolition and
reconstruction.
The minimum renewable quota is 60 % for domestic hot water production, and 60 % for heating, domestic hot
water and cooling combined.
Since, according to technical legislation, the energy produced by renewables is a negative addendum in the sum
of the total amount of primary energy consumption of the building, the obligation (60 %) cannot be fully satisfied
exclusively through a renewable electricity production system, it means not only through PV for example. Therefore,
the energy produced by PV is deducted from the energy consumption of the household and does not contribute to
the percentage of renewable consumption.
It also means that the client is obligated to install also a thermal renewable energy system, I. e heat pump, thermal
solar system, biomass, etc.
For public buildings, the total amount rises from 60 % to 65 %.
Exception here are the buildings connected to a district heating system, offices, and commercial buildings in general.
Even if some associations and politicians talked about gas boiler ban or at least incentive ban, nowadays there is
not still a law or law proposal about gas boiler.
125 Government of the Netherlands - News “Netherlands to phase out public funding for new fossil fuel exports”(2021)
126 Heat pumps mandatory to replace boiler | Business.gov.nl
127 DECRETO LEGISLATIVO 8 novembre 2021, n. 199 Attuazione della direttiva (UE) 2018/2001 del Parlamento europeo e del Consiglio,
dell'11 dicembre 2018, sulla promozione dell'uso dell'energia da fonti rinnovabili. (21G00214)

3.8 Conclusions
Across Europe, the movement towards phasing out fossil fuel heating is gaining momentum. Several countries are
taking proactive steps by either implementing their initial bans on fossil fuel usage for heating or accelerating the
enforcement dates of previously established bans. This exciting shift highlights the increasing relevance of heat
pumps as the leading, future-proof heating solution for residential purposes.

Section 4: Incentive schemes
Baris Solmaz
“European governments' incentives are paving the way to a more sustainable
future through heat pumps. This dedicated section is designed to empower you
to leverage local incentives and acquire a heat pump under favourable terms.”
4.1 Intro
Heat pumps may require a larger initial investment than traditional heating systems. However, householders may
be eligible for one or more premiums, which can make investing in a heat pump an attractive alternative.
Gas has been the primary source of heating for homes and businesses in Europe for more than a century. However,
in a concerted effort to combat climate change, many governments have decided to phase out gas and oil boilers
and are encouraging the adoption of low carbon solutions such as heat pumps.
Heat pumps create free environmental heat from the air, soil or water that can be used for heating properties,
using an electrical process that does not emit any pollutants on site. This is one reason why states are awarding an
attractive subsidy for the heat pump.
Convincing homeowners to switch to heat pumps has so far proved to be a significant challenge. However, with
rising gas prices becoming a concern across Europe and subsidies now available in most countries, there is a growing
enthusiasm and recognition that heat pumps are a viable option.
While air-to-air heat pumps can be cost-effective compared to gas boilers in certain markets, subsidies play a
crucial role in enhancing the competitiveness of air-to-water and ground-source units. We can further accelerate
the transition towards sustainable heating solutions by incentivising the adoption of these technologies.
4.2 Germany
With the Federal Funding for Efficient Buildings (BEG) 128, householders can receive support for the renovation of
buildings that save energy in the long term and thus protect the climate. The BEG is available to renovators.
On September 8, 2023, the German Bundestag passed the amendment to the key points for the new funding for
heating replacement. On this basis, the federal funding guidelines for efficient buildings (BEG) are now being
revised and will come into force at the beginning of 2024.
Renovators receive a subsidy of 30 % via the BAFA subsidy for heat pumps. This can be increased by 5 % if they
use water, soil or wastewater as a heat source or for HP with natural refrigerant. As the temperatures in the
groundwater and in the ground are higher all year round, the heating system has to do less, leading to better
efficiency, low power consumption and, ultimately, lower heating costs.
An income-related bonus of 30% is envisioned for owner-occupiers with taxable household income lower than €
40,000/year. BEG also grants a speed bonus for owner-occupiers of 20 until 2028 for the early replacement of
old fossil heating systems (gas boilers older than 20 years, all other boilers independent from age). From 2029
the amount of the “speed bonus” is decreased to 17%. Every 2 years from 2029, the amount decreases by 3%.
The bonuses can be accumulated up to a maximum funding rate of 70-75%. The maximum eligible costs for heating
system exchange is currently set at €30.000 (at a funding rate of 70%, which equals €21.000 subsidy for SFHs.
An alternative to the BEG is the tax bonus for renovation. Starting from 2024, this is worth 30 % of the costs
incurred for measures in a house that is at least 10 years old and used by the owner. Spread over three years,
renovation costs of up to €40,000 can be deducted from the owner’s income tax.
128 Förderprogramm im Überblick - Bundesamt für Wirtschaft und Ausfuhrkontrolle (2023)

4.2.1 Minimum technical requirements for the subsidy of a heat pump
To apply for a subsidy, minimum technical requirements must be met, including separate electricity and heat meters.
The following other requirements apply:
• Individual testing according to EN 14511/EN 14825 or certification based on the established European
series regulations (EHPA, Keymark, EUROVENT ECP, MCS, NF, etc.) by an ISO 17025 accredited testing
institute. Most Daikin Altherma heat pumps are Keymark certified.
• Seasonal space heating efficiency (ƞs or ETAs) for water heating systems as follows:
Min seasonal space heating energy efficiency Eta % @35°C Eta % @55°C
Air-source heat pump 145 125
From 1 January
2024 Geothermal and water-
180 140
source
• Achieve an annual performance factor of at least 3.

• SG-Ready heat pump heaters for grid-supportive operation: Eligible heat pumps must have interfaces
that allow them to be automated. They must be activated and operated in a grid-friendly manner (e.g.
on the basis of the standards SG Ready or VHP Ready).
• Reduction of the limit values for noise emissions of the outdoor unit of air-to-water heat pumps by 5 dB
lower than the legal limit.
Consult the BAFA list of suitable heat pumps here: Infoblatt zu den förderfähigen Maßnahmen und Leistungen (gültig
ab 20.06.2023).
4.2.2 Other eligible costs for subsidies

Homeowners who apply for a subsidy for their heat pump not only receive financial support for heating. The costs
of numerous environmental measures can also be subsidised. This includes work on the technical room as well as
optimisation measures on the existing heating system. For example, hydraulic balancing, insulation of pipelines or
installing new radiators and floor surfaces. BAFA provides an overview in the information sheet 129 on the eligible
measures and services.
If homeowners do not comply with the minimum technical requirements for the complete subsidy, the tax bonus for
services is an alternative. This allows them to claim 20 % of the wage costs incurred for craftsmen for tax purposes
every year. A maximum of €6,000 can be credited, with a maximum funding amount of €1,200. This must be used
for refurbishment, renovation or maintenance work in an owner-occupied property. The application is made
retrospectively via income tax return. Invoices with reported wage costs and transfer receipts must be submitted.
4.2.3 New buildings

If homeowners choose a heat pump heating system for a new build, they are eligible for financial support from the
Kreditanstalt für Wiederaufbau (KfW) through BEG funding. This provides access to low-interest loans with a
repayment subsidy of 5 %. This reduces the total loan amount that needs to be repaid on building a structure that
adheres to the Efficiency House Standard 40 and has a sustainability certificate. More information can be found
on the KfW website.
4.3 Belgium
4.3.1 Federal
The Federal Council of Ministers has approved a Royal Decree 130 that reduces VAT to 6 % for the installation of
solar panels, heat pumps and solar water heaters. The reductions 131 apply from 1 April 2022 to 31 December
129 Bundesförderung für effiziente Gebäude - Infoblatt zu den förderfähigen Maßnahmen und Leistungen
130 Afbraak en wederopbouw - Nieuwe maatregel (programma wet bs 30.12.2020) - Federale Overheidsdienst Financiën
131 A federal crisis plan to combat soaring energy prices – Belgium Official information and services

2023 for homes less than 10 years old, including newly built homes and homes rebuilt after demolition. This VAT
reduction does not apply to the purchase of newly constructed homes, including those with heat pump systems, that
are still in the planning or construction phase. After 31 December 2023, the reduction will still apply for heat pump
installation (until end of 2024) and to homes over 10 years old. For heat pumps, this measure has been extended
to 31 December 2024 inclusive132. This extension does not apply to solar panels or solar water heaters.
4.3.2 Flanders
The My Renovation Premium133 applies to houses, flats and all other buildings in the Flemish region. This subsidy
covers the installation of all types of heat pumps: geothermal, air-to-air, air-to-water and hybrid air-to-water. The
building should be connected to the electricity distribution network before 2014. The building can be connected to
the electricity distribution network after 2014 if the environmental permit for urban planning acts more than 5
years before the date of the final invoice meeting the EPB requirements. In this case, the EPB declaration, a report
describing how a construction project is carried out in terms of energy performance and indoor climate, must be
submitted in a timely manner. A building that is demolished and completely rebuilt is not eligible, but the Federal
VAT reduction can be applied in such cases.
In July 2023, the Flemish Government decided to discontinue the premium for a gas condensing boiler for final
invoices from 1 November 2023. The decision is also in line with the Flemish Energy and Climate Plan (VEKP) 2021-
2030, which the Flemish government approved earlier in May.
Conditions
• The heat pump is responsible for space heating, possibly with the production of domestic hot water.
• The applicant has not received a premium for a heat pump in the past 10 years.
• The installation or validation of the installation of the heat pump must be carried out by an official
installer:
o The list of certified installers can be consulted here: ResCert Gecertificeerde installateurs –
Warmtepompen.
• The total invoice amount of the eligible heat pump category is at least €1,000.
• The heat pump is placed as a replacement and not in a new build residence.
• The heat pump is to be the sole source of heat in the building.
Minimum technical requirements for the subsidy of a heat pump

• The heat output temperature of the system is up to 55°C.
• An air-to-water heat pump should have a European product label of A+ or higher for heating.
• An air-to-air heat pump should have a European product label of A+ or higher for heating.
• A hybrid air-to-water heat pump should have a package label with a minimum seasonal energy efficiency
(Ns) of 110 % for the combination.
• A geothermal heat pump should have a European product label of A++ or higher.
Note: Energy efficiency in heat pumps in homes and apartments granted under Commission Delegated Regulation
(EU) No 811/2013 of 18 February 2013 supplementing Directive 2010/30/EU of the European Parliament and
of the Council as regards energy labelling of space heaters, combination heaters, packages of space heaters,
temperature controllers and solar installations and packages of combination heaters, temperature controllers and
solar installations; or Commission Delegated Regulation (EU) No 626/2011 of 4 May 2011 supplementing Directive
2010/30/EU of the European Parliament and of the Council with regard to energy labelling of air conditioners.
Amount of the grant
The amount of the premium depends on depends on the type of heat pumps, final invoice date and household
income category134. Categorisation for income can be found at Mijn VerbouwPremie website - Vlaamseoverheid.
Lower income category
[Table 1]
132 Réduction temporaire de la tva : panneaux solaires, chauffe-eaux solaires et pompes à chaleur – Service Public Féderal webstite
133 My Renovation Premium for heat pump – Vlaanderen.
134 Who can apply for My Renovation Premium? | Vlaanderen.be

Premium for heat pumps
Type of heat pump Final invoice date Basic premium replacing electric heating
Geothermal - €6,400 €9,600

Air-to-air - €480 €720
Air-to-water Until 31-12-2023 €4,800 €7,200
Air-to-water From 01-01-2024 €3,600 €5,400
Hybrid air-to-water Until 31-12-2023 €3,200 €4,800*
Hybrid air-to-water From 01-01-2024 €2,400 €3,600*
*These amounts only apply to a hybrid air-to-water heat pump that replaces electric heating and not to hybrid air-to-water
heat pumps that are installed in an area without a natural gas connection.
Notes:
▪ The premium is a maximum of 50 % of the invoice amount (excluding VAT).
▪ The increased premium for the replacement of electric heating or installation in an area without natural
gas applies to premium applications submitted up to 31 December 2025.
▪ For Air to Water Heat Pumps , PV panels are mandatory.
Middle income category and higher

[Table 2]
Premium for heat pumps
Type of heat pump Final invoice date Basic premium replacing electric heating
Geothermal - €4,000 €8,000

Air-to-air - €300 €600
Air-to-water Until 31-12-2023 €3,000 €6,000
Air-to-water From 01-01-2024 €2,250 €4,500
Hybrid air-to-water Until 31-12-2023 €2,000 €4,000*
Hybrid air-to-water From 01-01-2024 €1,500 €3,000*
*These amounts only apply to a hybrid air-to-water heat pump that replaces electric heating and not to hybrid air-to-water
heat pumps that are installed in an area without a natural gas connection.
Notes:
• The premium is a maximum of 40 % of the invoice amount (excluding VAT).

• The increased premium for the replacement of electric heating or installation in an area without natural
gas applies to premium applications submitted up to 31 December 2025.
• For Air to Water Heat Pumps , PV panels are mandatory.
Applications for the premium can be submitted via the https://loket.mijnverbouwpremie.be/ (identification through
eID necessary)135.
Example136:
For a household where the residence is older than 15 years; it is used as the main residence by the owner; and the
household consists of a couple with two dependants, where the joint annual income is €60,000, a premium of €3,600
is available from the My Renovation Premium for an air-to-water heat pump, and €2,400 for a hybrid heat pump.
135 Mijn verbouwpremie - Vlaanderen

136 Simulator premie-aanvragen 2023 – Vlaams Energie & Klimaatagentschap

4.2.3 Brussels
The government has amended the Decree of the Government of the Brussels-Capital Region of 9 February 2012
on the granting of financial support in the field of energy, published on 31 March 2023. The premium is accessible
to both private individuals and businesses, regardless of their status. It applies to building renovations within the
Brussels-Capital region, as long as the buildings were constructed at least 10 years prior to submitting the premium
application. The premium covers activities such as the installation or replacement of a heat pump designed for
heating purposes or for both heating and domestic hot water. The installation of a hybrid heat pump, which
combines a heat pump and a gas-condensing boiler in a single appliance, is also eligible for the premium.
Conditions
• For the same address, any application below the minimum amount of €250 in RENOLUTION premiums will
be refused.
• The residential heat pumps should have an energy efficiency of A+.
• The amount of the premium may cover up to 90 % of the invoiced amount of the eligible work. The
maximum amount for single-family homes is €50,000.
Amount of the grant

The premium amount for the heat pump heating varies based on the type of building. In the case of residential
buildings, the amount is determined by income, which is categorised into three groups: category I (standard
category), category II (average incomes) and category III (low incomes). Furthermore, the premium is calculated
per individual residential unit, which includes both single-family houses and apartments within apartment buildings.
The categorisation for and the additional supporting documents necessary depending on the income category are
available for consultation on the Brussels official website – Les Catégories de Revenus 2023.
Water-source or ground-source heat

Income category Air-to-water heat pump
pump
Category I €4,500 €5,800

Category II €4,750 €6,150
Category III €5,000 €6,500
Minimum technical requirements for the subsidy of a heat pump

Heat pumps with a rated output of less than 70 kW are required to have a minimum energy efficiency class of
A+ to be eligible for the incentive.
Other bonuses
The Multi-Works Bonus is awarded if homeowners combine the application for this heat pump heating premium
with at least two other premiums via the same form. The amount of the premiums will then be increased by 10 %
for category I and II applicants and by 20 % for category III applicants. Premiums that are eligible for this bonus
are: thermal façade insulation, installation and replacement of doors and windows, repair and adjustment of
windows, repair of doors, thermal floor insulation and heating with heat pump.
The Oil and Coal Exit Bonus is granted in the event that an old oil boiler or a stove fuelled by oil or coal is
eliminated. This bonus is only available to households for heating installations in homes. The amount of the premium
is then increased by €300/oil boiler or €600/oil or coal stove for applicants in category I, by €350/oil boiler or
€700/oil or coal stove for applicants in category II, and €500/oil boiler or €1000/oil or coal stove for applicants
in category III.
4.2.4 Wallonia
To benefit from the premiums in Wallonia 137, the final invoice for work must be dated between 1 February 2022
and 30 June 2023 and must be submitted within four months of the invoice until the end of the programme (31
December 2025).
137 Prime temporaire - Appareil de chauffage et d'eau chaude sanitaire (jusqu'au 30 juin 2023) – Wallonie énergie SPW

Depending on the installation work to be done and the income category of the household, the maximum amount
that can be collected is as follows. See the income categorisation table on the official Wallonia website Prime
temporaire - Appareil de chauffage et d'eau chaude sanitaire (jusqu'au 30 juin 2023):
Work conducted Basic amount Max amount

Heat pump for domestic hot water €500 €3,000
Heat pump for heating or combined €1,000 €6,000
The installation of a heat pump is also eligible for incentives under the Primes Habitation 2023 (from July 1,
2023)138 for renovation works (external audit necessary):

Heat pump for domestic hot water €700 €4,200
Heat pump for heating or combined €1,500 € 9,000
Finally, the installation of a heat pump is also eligible for incentives under the Primes Toiture et petits travaux
sans audit139 for light renovation works (no audit needed).

Heat pump for domestic hot water €500 €700
4.3 The United Kingdom

4.3.1 UK and Wales
To reach the net zero carbon emissions target set by the UK government, the carbon emission from heating houses
needs to be reduced by 95 % over the next 30 years140. To accelerate the transition, the UK has a grant scheme
for the replacement of fossil fuel heaters. This will allow homeowners to have a more energy-efficient heating
system, save money on fuel bills and reduce carbon emissions.
The Boiler Upgrade Scheme provides a grant to cover part of the cost of replacing fossil fuel heating systems with
a heat pump or biomass boiler. Fossil fuel heating systems include oil, gas and electric. This scheme is open to
people living in England and Wales.
4.3.1.1 Eligibility
The eligibility depends on the conditions of the property and the situation of the owner. The applicant must:
• own the property the application is for, be it a business, second home or property rented to tenants;
• have installed, or plan to install, the new heating system on or after 1 April 2022;
• be replacing fossil fuel heating systems such as oil, gas or electric;
• have a valid EPC with no outstanding recommendations for loft or cavity wall insulation. The EPC for a
property in England, Wales or Northern Ireland can be found via Find an energy certificate – Gov.Uk
website.
This premium applies only to renovation projects. New build properties that the developer is still building are not
eligible. However, if an owner moves into a finished new build with a fossil fuel boiler, they may be able to get a
grant for a heat pump under the scheme. Applicants are still eligible for the grant if they have previously had
funding to make a property more energy efficient, such as by insulating it.
4.3.1.2 Amount of the grant

The first step is to contact an MCS certified installer for a quote. Installers can be found via the MCS – Find a
contractor website. The installer will assess the eligibility of the planned renovation. Once a quite is agreed, the
installer will apply on the homeowner’s behalf and the value of the grant will be deducted from the amount paid
for the installation.
138 Wallonie énergie SPW “Primes Habitation 2023 (à partir du 1er juillet 2023)”
139 Wallonie énegie SPW “Primes Toiture et petits travaux sans audit”
140 Energy Saving Trust 2023

Note: The authorities will contact you to confirm that the installer is acting on your behalf. They might also contact
you by phone or visit your property in order to check the installation. MCS might contact you to carry out their own
checks
4.3.1.3 How to apply
The first step is to contact an MCS certified installer for a quote. Installers can be found via the MCS – Find a
contractor website. The installer will assess the eligibility of the planned renovation. Once a quite is agreed, the
installer will apply on the homeowner’s behalf and the value of the grant will be deducted from the amount paid
for the installation.
Note: The authorities will contact you to confirm that the installer is acting on your behalf. They might also contact
you by phone or visit your property in order to check the installation. MCS might contact you to carry out their own
checks.
4.3.2 Scotland
The Home Energy Scotland Grant and Loan provides funding for energy efficiency improvements and heat pumps
in Scotland. It aims to support homeowners to make improvements and transition to renewable energy systems.
4.3.2.1 Amount of the grant
Grant funding for energy efficiency improvements can cover up to 75 % of the combined cost of improvements,
with a maximum grant amount of £7,500, or £9,000 for homes qualifying for the rural uplift. Grant funding for
heat pumps is up to £7,500, or £9,000 for eligible rural homes. The remaining funding can be taken as an interest-
free loan.
The grant is subject to availability and allocated on a first-come, first-served basis until funds run out or the end of
the financial year, whichever comes first.
4.3.2.2 Eligibility
To be eligible, applicants must be homeowners living in the property they own.
The grant covers interventions for:
• energy efficiency improvements: i.e. insulation (walls, doors, roof etc), electric heating, glazing;
• secondary improvements: e.g. cylinder thermostats, hot water jackets. These interventions need to be
combined with energy-efficiency improvements or renewable systems;
• installation of renewable systems: e.g. heat pumps, solar PV panels, energy storage systems (heat or
electric batteries).
More information can be found at Home Energy Scotland Grant and Loan: in detail.
4.3.2.3 How to apply
Interested applicants should complete the Home Energy Check on the Home Energy Scotland website before
contacting Home Energy Scotland. The contact form can be found on the Home Energy Scotland website.
4.3.3 Additional possible support
The Energy Company Obligation (ECO) 141 is a requirement for energy suppliers to help low-income households
reduce the costs of heating their home by fitting energy-saving measures. Different energy suppliers have different
amounts of support and offer different types of improvements. The Find your local council -Gov.UK website has
more information.
In England, the Social Housing Decarbonation Fund (SHDF)142 supports the government’s commitment to invest in the
energy performance of homes. The programme seeks to raise the energy performance of as many as possible of
the 1.4 million social homes below EPC band C to that to that level, as part of the journey for the social housing
stock towards Net Zero 2050. Interested owners can apply through the SHDF Wave 2.1 website.
The Home Upgrade Grant (HUG) 143 provides energy efficiency upgrades and low carbon heating via local
authority funding to low income households in England that are off the gas grid and have an EPC between D and
141 Energy Company Obligation (ECO) – Ofgem.gov.uk

142 Notice: Apply for the Social Housing Decarbonisation Fund: Wave 2.1 (closed to applications)
143 Home Upgrade Grant: successful local authorities – Gov.uk

G. The participating local authority areas are listed on the Find your local council webtool. The Home Upgrade
Grant (HUG 2) will be delivered from April 2023 until March 2025.
4.4 France
MaPrimeRénov144 is a premium available to all owners and all housing condominiums built at least 15 years ago.
It concerns dwellings occupied as a main residence, by the owner or by a tenant, and is used to help finance
renovation work to improve energy performance. It aims to encourage individuals to improve the energy efficiency
of their homes, reduce greenhouse gas emissions and contribute to the country’s climate goals.
The programme provides financial assistance in the form of grants to homeowners who undertake eligible energy
renovation works. These works can include insulation installation, heating system upgrades, ventilation improvements
and the installation of renewable energy systems like solar panels. The amount of aid depends on factors such as
the nature of the work, the homeowner’s income and the energy saving potential.
The programme was introduced in 2020 and has been expanded. It is open to a range of homeowners, including
individuals, landlords and condominium associations, with different criteria and funding amounts depending on the
applicant’s situation. A recent change to the conditions is that, since 1 January 2023, it is no longer possible to
benefit from MaPrimeRénov for the installation of a gas boiler, even with very high energy performance. The work
also benefits from a reduced VAT rate145 of 5.5 %.
As part of the 2024 finance bill, the French Government added 1.6 billion euros to the energy renovation budget,
bringing the total budget devoted to housing energy efficiency to 5 billion euros146.
These additional resources will make it possible to increase aid for the installation of air/water and geothermal
heat pumps, from €1,000 to €2,000 for households with modest and middle incomes. The objective is to accelerate
the replacement of boilers running on fossil fuels with carbon-free equipment.
To guide households in their renovation journey, the Government has changing the support system in place for end
users:
• Households undertaking a large-scale renovation will be systematically supported by an independent

trusted third party approved by the State, “My Renovation Supporter”.
• This will provide valuable support in the technical, administrative and financial procedures enabling aid
to be obtained and the work to be carried out. For very low-income households, this support service will
be covered in full, with no additional charges.
• Households undertaking a large-scale renovation will only submit one application for assistance to the
National Housing Agency (ANAH). This will provide additional aid under energy saving certificates (EEC)
from January 2024.
• The MaPrimeRenov' aid will be offered only to households living in a house that is already well insulated.
For this reason, an energy performance diagnosis (EPD) must be carried out at the start of the process, to
direct households living in energy sieves towards the major renovation process, if necessary.
The network of 550 France Renov' advice spaces, co-financed by the State and local authorities, is expected to
be strengthened to ensure the presence of a counter in each intercommunity by 2025.
4.4.1 Eligibility
• The eligibility and amount of assistance are determined based on the homeowner’s income. The programme
offers higher grants to households with lower incomes.
• The bonus is awarded without income conditions. However, income is taken into account to determine the amount
of the premium to which a person is entitled and the work and/or service for which they are eligible.
• It is the reference taxable income that is taken into account. This is indicated on the tax notice for the year
preceding the application for the bonus.
144 Prime énergie "MaPrimeRénov'" - Vous êtes propriétaire occupant - Service PublicRepublique Francaise
145 TVA à taux réduits : pour quels travaux ? | economie.gouv.fr
146 French Government “MaPrimeRénov’ 2024 : accélérons la rénovation énergétique”press kit

• The resource ceilings to be respected differ depending on whether an applicant lives in Île-de-France or
another region. These ceilings are categorised into four profile colours (Blue, Yellow, Purple, Pink) according
to levels of income. The greater a person’s resources, the lower the amount of the premium.
F IGURE 4.1 S OURCE : ANIL
F IGURE 4.2 S OURCE : ANIL

Year of construction:
• The property must be at least 15 years old. This is reduced to a minimum of two years in the event of a
request for a grant for the acquisition and installation of heating or domestic hot water supply equipment,
replacing a boiler running on fuel oil.
Energy performance criteria:
• The home undergoing renovation must meet certain energy performance requirements after the works are
completed.
4.4.2 Amount of the grant

The premiums available under MaPrimeRénov vary depending on the nature of the project and the homeowner’s
income. For air-to-water heat pumps, the amounts below are granted depending on income group.

Income group
MaPrimeRenov' MaPrimeRenov' MaPrimeRenov' MaPrimeRenov'
Bleu Jaune Violet Rose
Premium amount €4,000 €3,000 €2,000 N/A
For example, a childless couple with an annual income of € 41,000 can finance 37% of the installation cost of an
air-to-water heat pump with MaPrimeRénov and the Energy Saving Certificates scheme (CEE) 147. The rest of the
cost can be covered by an eco-PTZ148 (0% interest rate loan backed by the State) (see image below)
F IGURE 4.3 S OURCE : P RESS KIT "M A PRIME RÉNOV ’ 2024: ACCÉLÉRONS LA RÉNOVATION
To get precise information about the premiums available for specific projects and your eligibility, it is recommended
to visit the official MaPrimeRénov website or consult with local partner organizations authorized to administer the
program.
Note: Work and/or services must be carried out by a recognized professional responsible for the environment
(RGE). Can consult the list here: Outil de recherche – Agence national de l’habitat (Anah) – Service Public
Premium amounts can vary based on the type and efficiency of the heat pump, as well as other factors such as
regional variations and any additional conditions set by the programme. For precise information and accurate
premium calculations based on specific projects and circumstances, refer to the official MaPrimeRénov website or
consult with authorised local partner organisations administering the programme.
4.5 Poland
The Polish incentive for improving air quality and reducing greenhouse gas emissions by replacing heat sources and
improving the energy efficiency of single-family residential buildings is called the Clean Air Program 149. The
147 Energy suppliers may offer financial support to individuals within the framework of the so-called energy savings certificates (EEC) to
partially or fully finance their energy-saving work in their homes. Depending on the energy suppliers selected, the aid can come in the form of
premium, purchase vouchers, reductions, etc. French Republic webpage “Certificats d'économie d'énergie (CEE) "Standard"”
148 French Republic “Éco-prêt à taux zéro (éco-PTZ)” webpage
149 Program Czyste Powietrze – Ministerstwo Klimatu i Srodowiska

programme is targeted at owners of single-family houses. The financing is for thermal modernisation of buildings
and replacement of old and inefficient heating equipment with a modern heat source.
4.5.1 Eligibility
The table below shows the maximum amount of grant per income category for a project involving the dismantling
of an ineffective solid fuel heat source and the purchase and installation of an air-to-water heat pump or a ground-
source heat pump for heating or heating and hot water.
The renovation may also include:
▪ disassembly, purchase and installation of a new central heating or hot water installation;
▪ purchase and installation of a PV micro-installation;
▪ purchase and installation of mechanical ventilation with heat recovery;
▪ purchase and installation of insulation of building partitions, windows, exterior doors, garage doors/gates
(including disassembly).

The amount of the subsidy depends on the income category:
Level of co-
Basic level Increased level Highest level
financing
With PV Without PV With PV Without PV With PV Without PV

Amount of
grant with
PLN PLN
comprehensive PLN 66,000 PLN 60,000 PLN 99,000 PLN 90,000
135,000 120,000
thermo-
modernisation
Amount of
grant without
comprehensive PLN 41,000 PLN 35,000 PLN 59,000 PLN 51,000 PLN 79,000 PLN 70,000
thermo-
modernisation
The categorisation of level of financing is as given below:

Basic level: Beneficiaries are owners/co-owners of single-family residential buildings or residential premises
separated into single-family buildings with a separate land and mortgage register, with an annual income not
exceeding PLN 135,000. In the case of obtaining income from various sources, the income is cumulative, but the
sum may not exceed PLN 135,000.
Increased level: Beneficiaries are individuals who jointly meet the following conditions:
• They are the owners/co-owners of a single-family residential building or a residential unit separated into a
single-family building with a separate land and mortgage register.
• The average monthly income per member of their household does not exceed:
o PLN 1,894 in a multi-person household,
o PLN 2,651 in a single-person household.
Highest level: Beneficiaries are individuals who jointly meet the following conditions:
• They are the owners/co-owners of a single-family residential building or a residential unit separated into
a single-family building with a separate land and mortgage register.
• The average monthly income per member of their household does not exceed:
o PLN 1,090 in a multi-person household,
o PLN 1,526 in a one-person household,

Or, they have an established right to receive a permanent allowance, a periodic allowance, a family allowance
or a special care allowance, confirmed in a certificate issued at the beneficiary’s request by the commune head,
mayor or president of the city, containing an indication of the type of allowance and the period for which it was
granted (the allowance must be in each of the six calendar months preceding the month of submitting the application
for a certificate and at least until the date of submitting the application for co-financing).
4.5.3 Additional support

Subsidies under the Clean Air Program can be combined with the thermo-modernisation tax relief150. In such a case,
the benefits obtained by the beneficiary under both financial mechanisms are mutually complementary.
The subsidy and relief are independent instruments supporting thermo-modernisation projects. The catalogue of
eligible costs in the Clean Air Program has been defined separately from the catalogue of costs deducted as part
of the thermo-modernisation relief, on determining the list of types of building materials, equipment and services
related to the implementation of thermo-modernisation projects
If obtaining benefits jointly from subsidies under the Clean Air Program and the thermo-modernisation relief:
• expenses financed or co-financed from subsidies or reimbursed to the taxpayer in any form from public
funds are not deductible, but only the part that has not been co-financed;
• if, after earlier deductions of expenses under the thermo-modernisation relief, the beneficiary received a
refund of the deducted expenses in the form of a subsidy, they are obliged, in accordance with tax
regulations, to add the amounts previously deducted from the income for the tax year in which they
received this refund.
4.6 The Netherlands

The Dutch government’s Investeringssubsidie Duurzame Energie (Investment Subsidy for Sustainable Energy, ISDE) 151
is a financial incentive to promote the adoption of renewable energy technologies in owner-occupied homes.
The subsidy allows owners to:
• insulate their home;

• buy a solar water heater or a heat pump;
• buy an electric cooking appliance, for example, an induction hob;
• connect their house to a heating network.
For 2024, the ISDE budget was increased to €600 million, due to the large number of applications received during
the previous year152. Nearly 180,000 applications for heat pumps have been submitted until September 2023,
for a total of €333 million. In 2022, the total number of applications for the entire year was 100,000 (2022
budget: €325 million).
4.6.1 Eligibility
The heat pump to be bought should meet the below conditions:
• The heat pump is a new product and not second-hand or used.

• The heat pump has a maximum thermal capacity of 400 kW.
• The heat pump must have at least an A++ energy label to receive funding.
• Heat pumps from energy label A+++ receive an additional subsidy bonus of € 225.
• The heat pump is installed in a house built before 1 January 2019.
• The heat pump is installed before the subsidy is applied for.
• The installation was done by a building installation company.
• The owner has an invoice and proof of payment for the purchase and installation of the heat pump.
• The owner applies for the subsidy within 24 months after the installation of the heat pump.
The list of heat pumps that meet the criteria can be found at ISDE: Warmtepomp woningeigenaren.
150 Program Czyste Powietrze - Ulga termomodernizacyjna – Ministerstwo Klimatu i Srodowiska

151 RVO - Subsidie voor duurzame energie en energiebesparing koopwoning aanvragen-isde
152 National Government webpage “€210 million extra for insulation and heat pumps”

The calculation for the subsidy amount depends on many parameters and a calculation tool is provided through
the Netherlands Enterprise Agency website: Investeringssubsidie duurzame energie en energiebesparing voor
woningeigenaren (ISDE) - ISDE calculation tool for homeowners.
As an example, a heat pump with a capacity between 5 kW and 7.5 kW is eligible for a subsidy between €2,550
and €3,060153.
4.6.3 How to apply

See: Netherlands Enterprise Agency (RVO) - ISDE: Stappenplan aanvragen woningeigenaren
4.7 Spain
The Recovery, Transformation and Resilience Plan (PRTR)154 is the tool through which the government of Spain has
structured its strategy to channel the funds allocated by Europe to repair the damage caused by the COVID-19
crisis and, through improvements and investments, build a more sustainable future.
The PRTR is translated into several incentive programmes, the bases of which are established by the national
government. Each of the 17 autonomous communities adapts each programme and publishes its own calls in which
they are free to modify the budget reserve, beneficiaries, object of the incentive, etc.
It is necessary to highlight some important facts about how these incentive programs work in Spain:
• The national government approves the budgets of all programmes being funded with European funds and
establishes the general guidelines for their operation.
• The national government transfers all funds to the 17 regional governments and the two autonomous cities,
Ceuta and Melilla. Each of these regional governments is responsible for executing the grants and establishing
the mechanisms for companies and citizens to apply for them.
• These programmes are not specifically for air conditioning, heat pumps or other climate control solutions. They
are general programmes for rehabilitation and new construction that subsidise many actions, including some
of the climate solutions that Daikin offers.
The main programmes:
• Incentive programmes for the implementation of thermal renewable energy installations in different sectors of
the economy (RD 1124).
• Energy rehabilitation programme for existing buildings in demographically challenged municipalities (PREE
5000).
• Incentive programme linked to self-consumption and storage, with renewable energy sources, as well as to the
implementation of renewable thermal systems in the residential sector (RD 477). Implementation of thermal
renewable energy installations in the industrial, agricultural, service and/or other sectors of the economy,
including the residential sector. Implementation of thermal renewable energy installations in non-residential
buildings, public sector establishments and infrastructures.
Spain's National Recovery and Resilience Plan (NRRP) is the second largest (in absolute figures) financed by the
Next Generation EU (NGEU) recovery instrument and its main spending tool, the Recovery and Resilience Facility
(RRF)155.
In October 2023, the plan was amended, by adding a REPowerEU chapter the plan’s budget reached €163 billion.
153 RVO “ISDE: Warmtepomp woningeigenaren”

154 Spanish Government webpage “Plan de Recuperación, Transformación y Resiliencia”
155 European Parliament website “Spain's National Recovery and Resilience Plan: Latest state of play”

4.7.1 Eligibility
The potential beneficiaries of these incentive programmes are natural persons, legal entities, homeowners’
associations, local entities and public sector institutions, renewable energy communities and citizen energy
communities. Eligibility varies according to the specific programme.
4.7.2 Eligible actions
i) The incentive programme for implementing thermal renewable energy installations in different economic sectors.
• Implementation of thermal renewable energy installations in the industrial, agricultural, services and/or
other sectors of the economy, including the residential sector.
• Implementation of thermal renewable energy installations in non-residential buildings, establishments and
infrastructures of the public sector.
• The thermal renewable technologies included are: solar thermal, biomass, geothermal, hydrothermal or
aerothermal.
ii) Energy rehabilitation programme for existing buildings in demographically challenged municipalities (PREE
5000).
• Improvement of the energy efficiency of the thermal envelope.
• Improvement of the energy efficiency and use of renewable energies in the thermal heating, air
conditioning and cooling, ventilation and sanitary hot water installations.
• Improvement of the energy efficiency of lighting installations.
iii) Incentive programme linked to self-consumption and storage, with renewable energy sources, as well as to the
implementation of renewable thermal systems in the residential sector (RD 477).
• Implementation of self-consumption facilities, with renewable energy sources, in the service sector, with or
without storage.
• Implementation of self-consumption facilities, with renewable energy sources, in other productive sectors
of the economy, with or without storage.
• Incorporation of storage in self-consumption facilities, with renewable energy sources, already existing in
the service sector and other productive sectors.
• Implementation of self-consumption facilities, with renewable energy sources, in the residential sector,
public administrations and the third sector, with or without storage.
• Incorporation of storage in self-consumption installations, with renewable energy sources, already existing
in the residential sector, public administrations and the third sector.
• Implementation of thermal renewable energy installations in the residential sector.
Each autonomous community establishes the percentage limits for each incentive programme. Some national
programmes establish a limit; for example, programme i) has a limit of €3,000 per incentive per house).
i) The incentive programme for implementing thermal renewable energy installations in different economic sectors
• The programme has a total budget of €150 million.
• With this programme, the public support can reach 35 % of the cost of installing the thermal renewable
energy installation for an individual private person.
ii) Energy rehabilitation programme for existing buildings in demographically challenged municipalities (PREE
5000).
• The programme has a total budget of €50 million.
• It includes public support for different rehabilitation actions, including replacement of thermal installations,
which the government can subsidise up to 40 %.
iii) Incentive programme linked to self-consumption and storage, with renewable energy sources, as well as to the
implementation of renewable thermal systems in the residential sector (RD 477).
• The programme has a total budget of €200 million for air conditioning and hot water with renewable
energy.
• Aerothermal systems can receive €500/kW (€3,000/house).
4.7.4 How to apply?
Each autonomous community establishes the process, deadlines and requirements to apply for the incentive. Please
contact your local authorities to be guided.

4.8 Italy
The Ecobonus is an Italian government programme aimed at promoting energy efficiency and sustainable
renovations in buildings. The first Ecobonus was introduced in Italy by Law Decree 83156 of 22 June 2012 and was
renewed each year in state budget law (approved every year in December).
Under the Ecobonus scheme, individuals are eligible for tax credits for certain energy-saving and eco-friendly
renovations made to their homes or buildings. The tax credits can be used to offset income tax and are available
to both individuals and businesses.
The Ecobonus covers a range of energy-saving measures including: renovation of thermal systems with a new
condensation boiler, biomass boiler, heat pump or hybrid system; installation of thermal solar plant or heat pumps
for hot water production; improvements in building envelope such as better insulation of dispersing surface, new
performant windows or insulation of roof; building automation system for energy savings, etc.
The incentive percentage varies from 50 to 65% of the total amount, depending on the type of installation. It is
paid to the owner through a tax deduction over 10 years, so each financial year a rate value can be deducted.
4.8.1 Eligibility
• The property must be in Italy.
• The taxpayer must be the owner or co-owner of the property or have a long-term lease agreement.
• The property must be classified as residential, though there may be provisions for mixed-use buildings.
• The renovations must meet specific energy efficiency and sustainability criteria as defined by the scheme.

The tax credit percentage varies according to the type of renovation and energy efficiency improvement. The
percentages are available on the website of ENEA – Dipartimento unitá per l’efficienza energetica – Ecobonus.
Example: Replacement of an existing boiler with a heat pump that costs €15,300, including materials and
installation. The incentive amount from the scheme is 65 % of €15,300, or €10,000. The benefit is €1,000 in tax
deduction every year for 10 years.
4.8.3 How to apply
You can submit your request via the official ENEA website – Superbonus 110% and send the required documents
within three months (90 days) of the actual end of the renovation work.
4.8.4 Further bonuses

Conto Termico
Conto Termico157 is an incentive mechanism valid for private citizens and public buildings. The technical requirements
are similar to those of the Ecobonus, while the value is slightly lower. The incentive is in the form of cash, and not a
tax credit system. Conto Termico and Ecobonus cannot be combined.
Superbonus
Superbonus, financed by the European Green Deal Fund, was introduced through Law Decree 34/2020 and further
updates. The incentive percentage was extended to 110 % and the credit rates reduced to five years, but further
conditions had to be met:
• Renovation of thermal system or 25 % of building envelope.

• Increase of at least two EPC classes.
• Technical certification of cost congruence with restrictive criteria and checks.
For single-family houses, Superbonus lasted from early 2021 to December 2022, and was extended to December
2023 for requests already admitted and work already started in 2022.
156 Testo del decreto-legge 22 giugno 2012, n. 83 (in supplemento ordinario n. 129/L alla Gazzetta Ufficiale - serie generale - n. 147 del
26 giugno 2012), coordinato con la legge di conversione 7 agosto 2012, n. 134 (in questo stesso supplemento ordinario alla pag. 1),
recante: «Misure urgenti per la crescita del Paese.»
157 DECRETO 16 febbraio 2016 Aggiornamento della disciplina per l'incentivazione di interventi di piccole dimensioni per l'incremento
dell'efficienza energetica e per la produzione di energia termica da fonti rinnovabili. (16A01548) (GU Serie Generale n.51 del 02-03-
2016)

For multi-family houses, Superbonus ran from early 2021 to December 2022 with 110 % quote, and has been
continued to December 2023 with 90 % quote. Superbonus is primarily an incentive for multi-family houses.
The credit market was stopped by decree from February 2023, due to the expense for the Italian government.
5.9 Conclusions
In Europe, there are numerous incentive schemes, particularly in the renovation sector, that continue to offer
substantial benefits in many countries. While we anticipate that the European government's support for expanding
the adoption of heat pumps will persist for some time, it's worth noting that several countries have plans to gradually
reduce the incentive amounts over time. To make the most of these incentives, it is advisable to act promptly in
embracing heat pumps and capitalize on the current advantageous conditions.

Section 5: Optimized utilisation of solar PV technology
Irene Verdiesen
Product Manager
5.1 Introduction
By replacing a gas boiler with a heat pump, savings will be made on the gas bill but the power consumption of the
heat pump will increase the electricity bill. Depending on factors such as the country and the system, the reduction
in gas will usually more than offset the increase in electricity. Moreover, in combination with PV panels, the heat
pump will run for free part of the time, clearly tipping the scale in favour of the heat pump.
5.2 Reducing feed-in tariffs

What is a feed-in tariff? Feed-in tariffs are a policy tool designed to promote investment in PV panels by offering
small-scale producers of energy such as households an above-market price for what is delivered to the grid.
PV installations reduce energy costs in two ways:
1. By consuming electricity from own PV panels instead of from the grid, the electricity bill can be reduced
(self-consumption).
2. By selling excess production back to the grid (feed-in).
Feed-in tariffs are designed to promote renewable energy sources such as PV in the early stages of their
development when they are not yet economically viable. As prices of PV panels are dropping and efficiency is
increasing, these incentives are no longer so needed and therefore reducing in many countries across Europe. As
feed-in tariffs become less interesting, the focus of households with PV shifts towards optimising self-consumption.
5.2.1 Germany
In Germany, between 2000 and 2020, the household power price (red area) gradually went up, while the PV
tariff for installations up to 10 kW (dark blue line) came down quickly 158, as shown in the graph below.
F IGURE 5.1 S OURCE : PHOTOVOLTAICS REPORT – FRAUENHOFER I NSTITUTE FOR S OLAR ENERGY S YSTEMS , ISE WITH
SUPPORT OF PSE PROJECTS G MB H – 21/2/2023
158 Photovoltaics report – Frauenhofer Institute for Solar Energy Systems, ISE with support of PSE Projects GmbH – 21/2/2023 -

5.2.2 Netherlands
Via the “salderingsregeling”, households and small companies can deduct their yearly production from their yearly
consumption, meaning that it doesn’t matter when the household produces or consumes, only the net difference
counts towards the energy bill. This arrangement allowed customers to use the grid as a battery. As PV systems
become more efficient and economic, the government will gradually reduce the percentage of produced energy
that can be deducted from the consumed energy from 100 % in 2023 to 0 % in 2031.159
Year % that can be deducted

2023 100
2024 100
2025 64
2026 64
2027 55
2028 46
2029 37
2030 28
2031 and beyond 0
5.2.3 Belgium
Similar to the Netherlands, until a few years ago in Flemish households, energy meters literally counted backwards
when electricity was supplied to the grid. Since 2021 these analogue meters are being replaced by digital meters
that keep track of when households produce and consume energy. When households produce more energy than
they consume they will get a feed-in tariff; this is lower than the electricity price, so households are encouraged to
increase their own self-consumption.160
5.2.4 Conclusion
In a lot of European countries, in addition to the examples above, we see reducing feed-in tariffs. The amount of
money a household gets back per kW is a fraction of what they pay for electricity taken from the grid. Therefore
optimalisation of self-consumption becomes more interesting compared to returning energy to the grid. Heating the
house and hot water by electricity with a heat pump instead of by gas is a great way to do that.
5.3 Heat pumps and PV: seasonality throughout the year

Heat pumps take energy from the outside air or from the ground and transfer it to hot water to heat a home or
shower. To run the heat pump, electricity is needed. Depending on the efficiency of the heat pump and the emitter,
it needs about 1 kW of electricity to produce 3 to 4 kW of energy to heat a home and the domestic hot water.
PV panels generate electricity by absorbing solar energy. They generate the electricity the heat pumps need, but
the seasonality factor needs to be considered. As can be seen in below graph, the electricity generated by PV (the
F IGURE 5.2 S OURCE : H. W IRTH , FRAUNHOFER ISE “R ECENT FACTS ABOUT PHOTOVOLTAICS IN G ERMANY” (2023)
159 Rijksoverheid - Plan kabinet: afbouw salderingsregeling zonnepanelen

160 Engie Belgium - Zonnepanelen - Je terugdraaiende teller in Vlaanderen: behouden tot 2025 of niet?

blue line) peaks every year around June and drops to a minimum in December and January. The seasonal
fluctuation can be minimised somewhat by choosing south-facing modules with higher angles of inclination; however,
electricity production in July will always be higher than in December. This example is from Germany but the
seasonality will occur in most countries. 161
Meanwhile, the heat demand on the heat pump has an opposite seasonality. During winter, a lot of energy is
needed to keep the home comfortable and none during the summer. However, heat pumps do not just take care of
space heating; they also heat hot water. The demand for hot water is very stable throughout the year and is
therefore a good way to optimise self-consumption.
If the heat pump is also used for cooling during the summer, there is another opportunity to use excess PV energy.
5.4 Heat pumps and PV: profile during the day

As stated, feeding electricity back into the grid when there is a surplus becomes less and less interesting. Shifting
the load curve to periods when PV generation is high is a good way to optimise self-consumption and reduce
electricity bills.
Typical load curve during a summer day:
Surplus PV
F IGURE 5.3 S OURCE : OWN CALCULATIONS
Load curve during a summer day with some load shifting:
Surplus PV
161 H. Wirth, Fraunhofer ISE “Recent Facts about Photovoltaics in Germany” (2023)

Not all loads can be shifted, but hot water heating by the heat pump which is typically scheduled during the night
when electricity rates are low can easily be rescheduled during the day when free electricity can be generated.
As a heat pump typically has a lower capacity than a boiler, it doesn’t instantly heat water whenever there is a
demand as a boiler does. Instead , over the course of 30 minutes or 1 hour it heats a hot water tank, which is then
ready for use throughout the day. The size of that tank and the target temperature are typically designed to cover
the household’s hot water needs for a 24-hour period. As such, it doesn’t matter so much if this tank is heated at
night or in the day. A PV installation generates a lot of energy around noon and nothing during the night. By
rescheduling the tank heat-up to noon, during a large part of the year the tank can be heated with free PV energy.
To a certain extent, some pre-heating or pre-cooling of homes, especially with underfloor heating or cooling, can
also be done.
Another way to avoid feeding electricity into the grid is to store it locally. Excess energy can be stored in the form
of hot water in the tank of the heat pump or an additional buffer tank.
Energy stored in water can be calculated as

follows:
E = cp x dt x m
where:
E = energy
cp = specific heat of water = 4.18 Kj/kg°C
dt = temperature difference
230 liter 230 liter
60°C So in this example
50°C
E= 4.18 x 10 x 230 = 9,614 kJ
= 2.67 kWh
By increasing the tank temperature of a typical 230 litre tank from 50 to 60°C, 2.67 kWh energy can be stored
in the tank. A lot more energy can be stored by adding an additional buffer tank.
5.5 Heat Pumps and PV: optimalisation

Simply by replacing a boiler with a heat pump, a household enjoys free heating on the days and hours it is
available. The heat pump will benefit from PV in the same way as a washing machine or dishwasher: if it is running
while free electricity is being generated it will take advantage of it, if not, it will take energy from the grid. By
scheduling the heating of the domestic hot water tank to hours where an energy excess is likely to occur, the amount
of self-generated electricity being used can be increased.
However, there is a smarter way to optimally use PV-generated electricity with modern heat pumps. All recent
Daikin Altherma heat pumps can receive information on the excess amount of electricity available and optimise
their behaviour accordingly. When there is no request for cooling or heating of the home and the tank temperature
reaches its set point, the heat pump would normally be turned off. If it receives a signal that excess PV capacity is
available, it can heat the tank to the maximum set point and/or buffer energy in the space heating circuit.
5.5.1 Behaviour for domestic hot water heating
The size of the tank and the tank target temperature are selected to cover the household’s hot water demands. For
example a 230 litre tank is normally heated every day at 13.00 to 50°C to cover the evening bath and morning
shower of a small household.

If at 15.00 there is excess PV capacity, the Daikin Altherma heat pump will know exactly how much is available
and use only that amount to heat up the tank to 60°C. Additional capacity becomes available in the domestic hot
water tank and prevents or reduces a heat-up the next day at 13.00 when free PV energy may not be available.
When a cloud passes over the sun or the household’s energy consumption suddenly increases, perhaps by charging
an electric vehicle, the Daikin Altherma will immediately stop the buffering. If at a later time excess energy becomes
available again, it will pick up where it left off until the maximum tank temperature is reached.
5.5.2 Behaviour for space heating and/or cooling

It is also possible to buffer extra energy from the PV panels in the space heating/cooling circuit. Users can set a
heating comfort set point and a cooling comfort set point in the Daikin Altherma interface to select the maximum
heating temperature and minimum cooling temperature.
If a normal heating set point is 20°C, the comfort set point can be set to 22°C. This means the house will be slightly
warmer at no cost during a cold but sunny afternoon and additional heating will only be needed in the evening.

5.5.3 How to connect

Depending on the country and the recency of the Daikin Altherma there are different ways for the heat pump to
know when to buffer excess PV capacity.
On older Daikin Altherma heat pumps, a pulse counter energy meter can be connected to the smart grid contacts
on the product or on the optional BRP069A61. On newer models, the Daikin Home Hub EKRHH option can connect
to a clamp-based single- or three-phase electricity meter, and in some countries even directly to the smart meter
with a USB cable. In other countries, even cloud-based solutions are possible with the Daikin Altherma UP series.
All solutions provide an input to the Daikin Altherma when excess PV energy is available and buffering should start.
As they are are based on measuring the energy, they can be used with any brand of PV panel and inverter.
5.6 Heat pumps and PV: case study

In this case study in June 2022, a Daikin Altherma heat pump UP series with PV optimalisation was installed in a
Belgian household as a replacement for the existing gas boiler, to study the impact of storing excess PV in thermal
energy instead of returning it to the grid.

5.6.1 Specifics of the case study
• Daikin Altherma 3 H HT W (EPRA18DV3 + ETBH16E6V) with a 250 litre tank (EKHWS250D3V3)
• Connected to the cloud and the Daikin Altherma UP series
• PV 5kWp yearly production (2021) of 4.92 MWh
• Reheat DHW mode with a set point of 45°C which was increased to 55°C when excess PV was available
• Installed in Oudenaarde, Belgium
5.6.2 Self-consumption ratio definition
The formula for self-consumption is:
(𝑇𝑜𝑡𝑎𝑙 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 − 𝐸𝑥𝑝𝑜𝑟𝑡)
𝑆𝑒𝑙𝑓 𝑐𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛 =
𝑇𝑜𝑡𝑎𝑙 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛
For example:
5.6.3 Graphical representation of case study results

We will focus this case study on the period between 2 June 2022 and 2 July 2022. During this time, the heat pump
tank was set with a normal set point of 45°C, guaranteeing hot water for the household whether there is PV energy
or not. When there was sufficient excess PV capacity, the tank set point was automatically increased to 55°C in
order to store thermal energy in the tank.
1 4
5

The graph above shows the behaviour of the unit. The blue line represents the tank set point, usually at 40°C, once
a week increased to 65°C thanks to the legionella protection. When there is excess PV capacity available (visible
by the peaks in the yellow graph), the set point is increased to 55°C. The green line is the actual tank temperature.
By following the graph the behaviour of the unit can be understood.

 Until 2 June, the heat pump maintains the tank temperature around the 45°C set point. O 2 June, the test site is
activated and immediately for the first time there is excess PV capacity. The tank temperature is below 55°C, the
PV algorithm is enabled (peak in the yellow line) and the tank temperature increases to 55°C.
 The day after the weekly legionella protection, the tank temperature increases to 65°C for safety reasons.
 In the next few days there is no opportunity to enable the PV.
 On 9 June, the PV algorithm is activated twice. The tank temperature increases but the excess PV is not sufficient
(due to clouds appearing or increased household consumption) to reach the 55°C maximum set point.
 Between 12 and 17 June there were five occasions where there was sufficient PV energy to increase the set
point of the tank by 10°C and thus store 2.9 kWh of thermal energy for later use.
5.6.4 Numerical representation of case study results

The table below shows the PV production by day and by hour. Unsurprisingly, the highest PV production is achieved
between 12.00 and 14.00 on most days.
By adding the export to the grid, we can calculate the self-consumption ratio.
The self-consumption ratio during June with the Daikin Altherma UP series with PV optimalisation installed was: (650
– 392) / 650 = 39.7 %.
To understand the effect of the heat pump, the self-consumption rate without heat pump was calculated. The PV
production remains the same, but the export to the grid would be higher as without a heat pump, domestic hot
water would be provided by gas boiler and thus electricity usage would be lower.
Taking as an example 16 June, on this day – thanks to the optimisation algorithm – the Daikin Altherma heated its
tank during the time of the day with a lot of PV. Therefore, the majority of the power consumption came from the
own PV production. If the Daikin Altherma had not consumed this power, it would have been exported back to the
grid. On this day, the self-consumption ratio was 27 %; without the Daikin Altherma it would have been only 16 %.
Because almost 90 % of the Daikin Altherma power consumption came from excess PV, the impact on the self-
consumption ratio was very large.
This is not always the case. For example, on 9 June, the domestic hot water tank had to be reheated in the morning
when no excess PV capacity was available. At 12.00 there was enough excess PV capacity to heat the tank further,
but because of the first heating in the morning, only 26 % of the Daikin Altherma energy came from excess PV and
as such the impact on the self-consumption ratio is smaller than in the previous example.
Of course, there were a few days where there was almost no PV capacity and no impact on the self-consumption
ratio. The total power consumption of the heat pump during June was 72.45 kWh. Because of the weather, the
heat pump was only used for domestic hot water with no requirement for space heating. Of this 72.45 kWh, 45.23
kWh was provided by the PV installation.
Results for June 2022:
without
with HP difference
HP
PV production 650 kWh 650 kWh 0 kWh
Excess energy 392 kWh 437 kWh 45 kWh
SCR 40% 33% 7%
5.6.5 Summary results of the case study

1. Base line: if there were no heat pump (heating and domestic hot water done by boiler) all the excess PV
would flow back to the grid and the self-consumption ratio would be 33 %
2. With the Daikin Altherma heat pump and PV optimisation algorithm, the self-consumption ratio was 40 %

5.6.6 Energy savings
In this example, with energy prices from June 2023, the monthly saving on the heat pump running cost from using
PV energy is €13. Returning the excess energy to the grid instead of the heat pump would only save €3 on the
electricity bill.
(Source: Daikin own case study)
5.6.7 Yearly projection
The test site results were monitored from 2 June 2022 to 2 July 2022, and by projection a yearly saving can be
calculated. Using the European website162 for Photovoltaic Geographical Information, a monthly spread of PV
production can be calculated for this location (Oudenaarde, Belgium).
Therefore as the PV production in June was 650 kWh, we can calculate that in January it will be only 32 % of the
June value, or 208 kWh. This allows us to calculate the expected PV production for the entire year.
To calculate the yearly savings, it is estimated that the demand for domestic hot water, the energy consumption to
produce hot water and the household energy consumption without the heat pump remain stable throughout the year.
This is a simplification, as in reality, the heat pump will consume a bit more during the colder months as efficiency
is lower. However, as during the coldest months there is not much PV excess capacity to benefit from, this
simplification will not have a significant impact on the yearly calculation.
As explained, the heat pump benefits in two ways from the presence of PV. Like any other electrical appliance, if
it consumes energy while PV capacity is available, it will run for free. When a lot of excess PV capacity is available,
additional energy can be stored in the tank by increasing the test site. This second part in this test site was only
activated when at least 1.8 kWh of excess PV energy was available. For smaller capacity heat pumps, this
boundary can be lower. The PV optimalisation may not be activated every time there is an excess of 1.8 kWh
available, for example, if the tank is still at a high temperature due to the legionella protection or due to a previous
heat-up operation.
The June data shows us that out of the 73 kWh electricity usage by the Daikin Altherma, 45 kWh came from PV
production. Since the PV production and the number of days where the activation condition is reached are projected
to be almost the same in April, May and July, we estimate the same energy savings in those months.
In January and December, when the monthly PV production is below the household consumption without heat pump,
we don’t project any energy savings. This is on the conservative side, as even in December and January there is
some excess PV capacity at certain hours of the day.
During the other months, we projected the energy saving based on the June result, taking into account the projected
excess capacity at 13.00 (so that a scheduled domestic hot water heat-up at that time can take advantage of
whatever excess capacity is available) and the maximum number of days where additional storage in the domestic
hot water tank could be possible.
162 European Commission - EU Science Hub - Photovoltaic geographical information system: performance of grid-connected PV

For domestic hot water production over the full year, the heat pump is estimated to consume 870 kWh, of which
298 kWh will come from free PV energy, resulting in energy savings of €87. If this energy had been fed back into
the grid, the gain would be only €23.
This case study clearly shows that households with PV can increase their self-consumption ratio and thus realise
energy savings by heating their domestic hot water with a heat pump instead of with a gas boiler.
In the shoulder season, further energy savings can be realised as the excess PV energy can be partially used for
the space heating operation of the heat pump. This was not considered here as our case study took place in June.
5.7 Heat pumps and PV: international research

Independent internal research confirms the symbiosis of heat pumps and PV. According to a report by Solar Power
Europe163, in 2022, homes with solar PV enjoyed substantial savings on their energy bills, especially in combination
with electricity-based heating technologies. The report models annual energy expenses of a typical household in
different countries in a new build home with the extreme energy prices of 2022164.
The below graphs show the modelled energy savings of the three technologies: solar, heat pump and solar + heat
pump in Germany, Spain and Italy.
163 Solar Power Europe “Solar Powers Heat 2023” (2023)

164 Conditions
• thermal demand for space and water heating (12,000-20,000 kWh/year) corresponds to an average of existing houses using an
average gas boiler with 85 % efficiency
• annual electricity demand of average family homes (4,000-4,500 kWh/year)
• average household gas and electricity prices in 2022 from the Household Energy Price Index (Vaasa ETT, 2023).

F IGURE 5.12 S OURCE: OWN CALCULATION
A PV size of 7 kW was modelled in Italy and Spain and 8 kW in Germany. Savings from reduced purchase of
grid electricity and selling excess production were taken into account. Thanks to high solar production in Spain and
Italy, the savings there are higher than in Germany. Trading a gas boiler for a heat pump with a water buffer
tank created the highest savings in Germany due to the higher heat loads, and the lowest savings in Italy due to
the highest electricity prices.
The model shows that the combination of solar PV and heat pump yields higher annual energy savings for all
households compared to the sum of the separate technologies. It’s important to note here that the study assumed a
buffer storage size of 400 litres in Italy and Spain and 800 litres in Germany. This allows a large part of the heat
load to be covered by the solar PV by storing warm water for later usage. Of course, buffer tanks of that size are
not possible in all applications.
In this model, thanks to the buffer tank, self-consumption and energy savings can be maximised.

This graph shows the hourly electric load profiles of solar PV and the heat pump and the effect of load shifting
with the buffer tank. In summer, solar production is sufficient to run the heat pump during the day. In the evening

and at night, the hot water in the buffer tank can be used for space heating and domestic hot water. However,
due to the low demand for heating, only a small portion of the buffer tank capacity is used during the night. During
winter, more load shifting can be observed.
Under average weather conditions and with the buffer tank to match heat pump and solar load profiles better,
this study found that nearly two-thirds (62 %) of the electricity needed to heat an average Spanish family household
could be covered by solar PV. For Germany this was more than one-third (38 %).
5.8 Conclusion
This paper shows that in various European countries, the return from PV by exporting excess PV capacity back to
the grid is reducing year by year as government incentives reduce. To maximise the benefit of a PV installatio,n
self-consumption should be increased and as much as possible the load should be shifted to periods of peak
capacity. Replacing a gas boiler with a heat pump trades gas consumption for electricity consumption. This
consumption is partially free thanks to PV production. In particular, domestic hot water production by the heat pump
can be scheduled in such a way that the load coincides with periods of excess PV capacity. Additionally, thermal
energy can be stored in the existing domestic hot water or optional buffer tank by optimising the heat pump
behaviour based on actual and/or predicted excess PV capacity. The combination of heat pump and PV will
generate additional energy savings.

Section 6: Carbon footprint of heat pumps
Tom Lapere
Senior Certification Officer
"The EU's commitment to climate neutrality by 2050, anchored in the EU Green
Deal, highlights the pivotal role of heat pumps in our formal pursuit of
sustainability."
Tatiana Fedorova
Environmental Product Declaration Officer
“In this section, you will learn how heat pumps help to reduce GHG emissions
locally and globally. The technology is here, so why don't we 'pump up' our
efforts to reach carbon neutrality and make change right now?”
6.1 Ongoing decarbonisation of heating

As the devastating impacts of climate change caused by greenhouse gas emissions from human activities can
already be witnessed around the world165, countries are accelerating their efforts to combat climate change. The
EU is taking a leading role in this transition and aims to become climate-neutral by 2050166 to comply with the goal
of limiting the temperature increase to 1.5°C as defined in Paris Agreement.
A decarbonised EU by 2050 is the primary and overarching goal of the EU Green Deal, an ambitious and
comprehensive plan to tackle climate change. The EU aims to reduce greenhouse gas emissions by 55 % across all
sectors of the economy, including energy and buildings. Currently, buildings are the largest energy consumers,
accounting for 40 % of the region’s total energy consumption and contributing to 36 % of its greenhouse gas
emissions167. In the residential sector, around 80 % of the final energy consumption is used for space and water
heating168. This energy still comes from the combustion of fossil fuels like coal, natural gas and oil, which are highly
carbon-intensive and contribute drastically to global temperature rise. Since buildings and their heating are
significant sources of emissions, decarbonisation of heating is essential to achieve the EU’s goals.
6.2 The role of heat pumps in decarbonisation

6.2.1 Heat pump advantages for decarbonisation
Heat pumps play a crucial role in the decarbonisation of the EU. As the EU aims to transition to a low-carbon and
sustainable energy system, reducing greenhouse gas emissions is a top priority. Heat pumps contribute significantly
to this goal by providing a more energy-efficient and environmentally friendly alternative for heating than
conventional fossil fuel-based systems.
According to European Heat Pump Market and Statistics Report 2023169, “the heat pump stock in 2022 (heat
pumps sold in the past twenty years) contributed 52.52 Mt of greenhouse gas emission savings”. Globally, using
heat pumps in place of conventional boilers and furnaces has the potential to reduce annual global CO 2 emissions
by 3 gigatons if adopted worldwide170.
Below are some key aspects of how heat pumps aid in the EU’s decarbonisation efforts:
1. Energy efficiency: Heat pumps are known for their high energy efficiency. Instead of generating heat directly,
as traditional heating systems do, they move heat from one place to another. This process requires less energy
165 AR6 Synthesis Report: Climate Change 2023 — IPCC. (2023). IPCC.
166 European Union. (2020, March 6). Long-term low greenhouse gas emission development strategy of the European Union and its Member
States.
167 Press corner. (2021, December 15). European Commission - European Commission
168 Eurostat. (2022, June). Energy consumption in households
169 European heat pump market and statistics report 2023. (2023). European Heat Pump Association
170 Building decarbonization: How electric heat pumps could help reduce emissions today and going forward. (2022, July 25). McKinsey &
Company.

than creating heat from scratch, allows heat pumps to achieve high coefficients of performance (meaning they
produce more heat energy output per unit of electricity input) and contributes to reduced energy losses. As a
result, heat pumps can significantly reduce energy consumption and related emissions, contributing to the EU’s
energy efficiency goals. You can see specific example of heat pump efficiency in Section 6.4.
2. Renewable energy utilisation: Heat pumps are an efficient way to use renewable energy sources for heating
and cooling. They can extract heat from the air, surface water and underground aquifers, waste heat and the
ground and then amplify and transfer it into buildings for space heating or cooling. Since they primarily rely
on electricity for their operation, coupling them with renewable energy sources like solar, wind, or hydroelectric
power enables a substantial reduction in carbon emissions. For solar energy, Daikin has released high-
efficiency thermal solar panels (Daikin Altherma ST) that are compatible with a wide range of Daikin heat
pumps to help homeowners benefit from renewable energy use.
3. Reduced fossil fuel dependence: As the EU decreases its dependency on fossil fuels for heating, its overall
carbon footprint decreases. This not only helps in meeting emission reduction targets but also enhances energy
security and reduces exposure to fluctuations in fossil fuel prices.
4. Electrification of heating: Electrification of heat has a potential of 17 % reduction in total energy-related
emissions171. By promoting the use of heat pumps powered by electricity, the EU can gradually shift away
from fossil fuel-based heating systems and reduce its reliance on finite and carbon-intensive energy sources.
5. Retrofitting opportunities: The EU has a large stock of existing buildings, many of which still use inefficient
and carbon-intensive heating systems. Heat pumps provide a viable retrofitting solution, enabling these
buildings to transition to cleaner energy sources without requiring extensive infrastructure changes.
6. Cooling solutions: Climate change is also leading to an increased demand for cooling in buildings. Heat
pumps can be used for efficient air conditioning, providing a sustainable alternative to conventional cooling
systems that often rely on refrigerants with high global warming potential.
Overall, the widespread adoption of heat pumps in the EU can contribute significantly to achieving its
decarbonisation and climate goals by reducing greenhouse gas emissions, promoting energy efficiency and
accelerating the transition to renewable energy sources.
6.2.2. Heat pumps support in EU regulation
Heat pumps are key to enabling the clean energy transition and achieving the EU’s carbon neutrality goal by
2050172. According to a 2022 report from the International Energy Agency, heat pumps are expected to reduce
Europe’s gas demand for building heating by at least 21 billion cubic metres in 2030173.
The EU is working on the EU Heat Pump Action Plan, which aims to install at least 10 million additional heat pumps
by 2027174. This plan will be supported by various existing EU policy initiatives like Renovation Wave Strategy,
Renewable Energy Directive (RED) and Energy Efficiency Directive (EED), Energy Taxation Directive, Regulation on
fluorinated greenhouse gases and many others.
The action plan will include an assessment of available funding options for the installation of heat pumps in
individual buildings and for heating networks supplied by large heat pumps. This assessment will be integrated into
local and regional heating and cooling strategies.
6.3 LCA of heat pumps

To understand the carbon footprint benefits of heat pumps in comparison with gas-powered heating technologies,
it is important to perform a life cycle assessment (LCA) of heat pumps.
An LCA is “a process of evaluating the effects that a product has on the environment over the entire period of its
life thereby increasing resource-use efficiency and decreasing liabilities. It can be used to study the environmental
impact of either a product or the function the product is designed to perform”175. LCA is a standardised method to
assess a product’s full life cycle: from the extraction of resources, through production, use and recycling, up to the
disposal of remaining waste. It is a powerful decision support tool necessary to make consumption and production
more sustainable.
LCA methodology identifies the different life stages (A, B, C, D) of a product with division into modules (e.g. A1-
A5). There are currently four major scopes of LCA:
171 Thomaßen, G., Kavvadias, K., & Navarro, J. P. J. (2021). The decarbonisation of the EU heating sector through electrification: A parametric
analysis. Energy Policy, 148, 111929.
172 European Commission – DG Energy Topics “Heat pumps. (2023)”
173 The Future of heat pumps – Analysis - IEA. (n.d.). IEA
175 Life cycle assessment. (n.d.). European Environment Agency – Life cycle assessment definition

• cradle-to-gate (A1-A4)
• cradle-to-handover (A1-A5)
• cradle-to-grave (full stages A, B, C)
• cradle-to-cradle (cradle-to-grave + module D).
F IGURE 6.1 G RAPHICAL REPRESENTATION OF LIFE CYCLE ASSESSMENT . S OURCE: CIBSE (UK)
Since 2021, Daikin has performed cradle-to-grave LCA for heat pump products. This allows us to go beyond
evaluating the environmental impacts of refrigerants only and get a holistic picture of the environmental footprint
of our products from manufacturing stage till the end-of-life.
6.3.1 Whole life carbon
Cradle-to-grave assessment aligns with the concept of whole life carbon (WLC), which refers to the total carbon
footprint associated with a product throughout its existence. By considering the entire life cycle of a product or
building, including both operational and embodied carbon, decision-makers can make more informed choices to
reduce its overall carbon impact.
F IGURE 6.2 THE CONCEPTS OF WLC, EMBODIED AND OPERATIONAL CARBON .

6.3.1.1 Operational carbon
Operational carbon refers to the emissions associated with the ongoing use and operation of the product (Figure
2). In LCA methodology, this includes modules B1, B6 and B7. Currently, operational carbon represents the majority
of emissions released through the lifetime of a building or heating product, including heat pumps and gas boilers.
6.3.1.2 Embodied carbon
Embodied carbon accounts for emissions associated with the extraction, manufacturing, transportation, construction,
maintenance, repair and end of life of a product or building (Figure 2). In LCA methodology, this includes modules
A1-A3, A4, A5, B2-B5, C1-C4. The importance of embodied carbon is rising, driven by two factors: the ongoing
decarbonisation of the grid and the reduction of operational emissions resulting from improved efficiency.
6.3.2 Environmental Product Declaration
An Environmental Product Declaration (EPD) provides an independently verified summary of the environmental
impact of a product throughout its life cycle, calculated via an LCA. An EPD includes quantitative data on various
environmental indicators such as greenhouse gas emissions, energy consumption, ozone depletion potential, water
usage, resource depletion and many others. EPDs are typically based on international standards, such as ISO
14025, 14040/14044, EN 15804 or ISO 21930. They are valid for five years and follow specific guidelines for
conducting LCAs of the product.
There are two major types of EPDs:
• An industry-wide, or generic EPD covers a broad product type and applies to a group of similar products
from one or more manufacturers.
• A product-specific EPD applies to a single product – or very similar products – from a single manufacturer.
This is the most transparent approach, third party verified, and the one that Daikin is using.
The creation of EPD is based on the methodology defined by Product Category Rules (PCR) and Product-Specific
Rules (PSR). PCR sets the standardised and generic rules for conducting LCAs and preparing EPDs for a product
category. PSR provides additional and tailored rules specific to an individual product within that category. These
are maintained by an EPD operator and verification, publication and product requirements differ from country to
country. Together, PCR and PSR ensure a consistent and transparent approach to environmental assessment while
allowing for customisation to address the unique aspects of each product being assessed.
Daikin supports two programme operators:
• TM65 mid-level calculation from CIBSE in the UK (Type II non-verified EPD).
• PEP (Product Environmental Profile) Ecopassport in France (Type III third party verified EPD)
TM65 focuses only on carbon impact, while PEP also covers other environmental input indicators.
PEP Ecopassport is an environmental declaration programme designed for electrical, electronic and HVAC-R
(heating, ventilation, air conditioning and refrigeration) products. The program is managed by PEP Ecopassport
Association, a non-profit organisation based in France. The association works with various stakeholders, including
manufacturers, trade associations and environmental experts, to develop and maintain the PEP Ecopassport
methodology and guidelines. Declarations are subject to independent verification by accredited third-party
verification bodies to ensure the accuracy and reliability of the environmental information.
EPDs help to achieve EPD and LCA credits in certification schemes such as LEED, BREEAM and others. EPDs are also
becoming required by country regulations. France has issued RE2020 environmental regulations 176 encouraging the
building sector to declare its whole life carbon footprint. This regulation is a component of an ongoing initiative
aimed at promoting buildings with lower energy consumption.
EPDs for France can be found in the PEP Ecopassport database or INIES database.
6.4 Case study: carbon footprint of Daikin heat pumps vs gas boiler
6.4.1 Products being compared
In this case study, we compare Daikin Altherma 3 R 180L (air-to-water heat pump) and a highly efficient gas boiler
(90 % efficiency). EPDs for both products were calculated for France and verified by an independent third party.
Both EPDs are available on the INIES database. The chosen products provide space and water heating and cooling.
176Ministère de la Transition écologique et de la Cohésion des territoires, Ministère de la Transition énergétique. (2023). Réglementation
environnementale RE2020

Parameter Heat pump Gas boiler
Name 1 outdoor unit ERGA04EV Reference gas boiler
1 indoor unit EHVH04S18E (180L)
Heating capacity 6 kW 18.5 kW
SCOP177 3.26178 -
Country of production Czech Republic Europe
Country of use France France
Refrigerant used R32 -
Reference lifetime 17 years 17 years
Weight 197.5 kg including 18.7 kg of 33 kg (including packaging)
packaging
Material composition Metals: 76.1 % Metals179: 64.65 %
Plastics: 12.0 % Plastics: 9.89 %
Other: 11.9 % Other: 26.46 %
F IGURE 6.3 BREAKDOWN OF CO2- EQ PER LIFE STAGES FOR HEAT PUMP AND GAS BOILER , %
As seen from the pie charts (Figure 3), the use phase is dominant for both heat pump and gas boiler. However, for
a gas boiler, it constitutes almost 100 % of the total carbon footprint due to high CO2 emissions produced while
burning gas. The use phase for this specific heat pump account for nearly 82 % of the total carbon emissions. The
use phase is calculated for France, therefore France’s energy mix was taken to calculate carbon emissions from
electricity use. It is important to mention that precise LCA calculations and EPDs are country-specific as a country’s
energy mix has a big influence on the use phase and total carbon emissions. The manufacturing stage for a heat
pump constitutes 15 % higher CO2 emissions than for a gas boiler. This can be explained by the relativeness of this
value: compared to high emissions during the use phase, the gas boiler manufacturing stage is almost 0 %.
177 The Seasonal Coefficient of Performance (SCOP). Seasonal efficiency is a new way of measuring the true energy efficiency of heating and
cooling technology, over an entire year. This new measure gives a more realistic indication of the energy efficiency and environmental impact
of a system. The new method of rating energy efficiency is driven by the EU’s Energy Related Products (ErP) Directive (the Eco-design Directive)
which specifies the minimum Eco-design requirements that manufacturers must integrate into their energy-using products. More information here.
178 The value is chosen for average climate.
179 Materials used for the gas boiler are assumed numbers, based upon a screening and analysis of gas boilers on the European market.

6.4.2 Whole life carbon
For the analysis we used the “Contribution to global warming” environmental impact indicator translated from kg
CO2-eq to tons of CO2-eq. The results per each life stage are presented below.
F IGURE 6.4 COMPARISON OF FULL LCA FOR DAIKIN HEAT PUMP AND GAS BOILER
S OURCE: O WN CALCULATIONS
The total global warming potential (GWP) of a Daikin heat pump is nearly eight times less than total GWP of gas
boiler: 7.87 tons of CO2-eq versus 63.9 tons of CO2-eq (over a period of reference life time = 17 years). This
difference is explained by the high contribution of the use phase to the total values of both products where a Daikin
heat pump consumes less energy and works on electricity with lower GWP (here: France electricity mix). The rest
of the phases require a closer look.
6.4.3 Embodied carbon
F IGURE 6.5 COMPARISON OF EMBODIED CARBON FOR DAIKIN HEAT PUMP AND GAS
BOILER .S OURCE : O WN CALCULATIONS
The total embodied carbon of a Daikin heat pump is higher than a gas boiler’s. This is mostly due to the bigger
results for heat pump in the manufacturing and end-of-life stages: the weight of a heat pump is 197.5 kg vs 33 kg
for the gas boiler (both values include packaging). Additionally, a Daikin heat pump use more printed circuit boards
(PCB) than a gas boiler due to the complexity of the product. PCB has high GWP (369.83 kg CO 2-eq/ kg) which
contributes greatly to the carbon footprint of manufacturing stage.

6.4.4 Operational carbon
F IGURE 6.6 COMPARISON OF OPERATIONAL CARBON FOR DAIKIN HP AND NATURAL GAS BOILER .
S OURCE: OWN
Emissions from the gas boiler used in this study are almost 10 times bigger than from the heat pump. The energy
use was calculated for France. The carbon footprint of the use phase of the heat pump will vary in each country
due to the specific emission factor of their electricity grid.
6.4.5 Heat pump carbon emission benefits during use stage per country
Replacing a gas boiler with a heat pump will result in significant CO2 emission savings in a typical single-family
buildings in European countries. To illustrate this, we have calculated the CO2 emissions over one year in different
European markets for a typical medium-sized household with 10,000 kWh annual energy consumption –
representative for the new build market. The countries considered in this study are France, UK, Italy, Spain,
Netherlands, Belgium, Germany and Poland. The countries were divided into two groups based on their average
minimum temperature, indicated as Td – design temperature: Td= -7 and Td= -11.6.
To estimate yearly CO2 emissions, we need to calculate yearly electricity and gas consumption for a Daikin heat
pump and reference gas boiler. Below are the parameters used to calculate their electricity consumption:
Heat pump solutions
Td = -7°C Td = -11,6°C
ERGA04EV ERGA08EVH7
Daikin air-source heat pump
EHVH04S18E6V EHVH08S18E6V
Energy label - SH A++ A++
Yearly heating demand for SH [kWh] 10.000

Yearly electricity consumption [kWh] 2,272 2,541
Gas boiler
Gas boiler efficiency [%] 90
Yearly heating demand for SH [kWh] 10,000
Yearly gas consumption [kWh] 11,111
The yearly electricity consumption was calculated by the Daikin heating solutions navigator ,which considers the
application temperature of Daikin Altherma and climate condition. It is assumed for this exercise that Daikin
Altherma is used in combination with underfloor heating. For climate condition Td=-7, the yearly consumption is
2,272 kWh, while for Td= -11,6, it is equal to 2,541 kWh. The yearly gas consumption was calculated by
dividing the yearly heating demand with the gas boiler efficiency, which resulted in 11,111 kWh.

To proceed with yearly CO2 emissions per country, we need to multiply the yearly energy consumption by the
CO2 emission factor (EF). This is a coefficient that allows us to convert human activity data into greenhouse gas –
in this case CO2 – emissions. The EF for natural gas is taken as 0.198 kg/kWh for each country. The EFs for electricity
vary per country since electricity is produced from different sources like fossil fuels, nuclear power, renewables etc.
Countries with Td=-7°C
Daikin heat pump Gas boiler Absolute Delta Relative Delta

CO2 EF Yearly CO2 CO2 EF Yearly CO2 Yearly difference in Times less of yearly
electricity emissions gas emissions CO2 emissions CO2 emissions
[kg/kWh] [kg] [kg/kWh] [kg] [kg]
France 0.041 93 0.198 2,200 2,107 24
United Kingdom 0.2223 505 0.198 2,200 1,695 4
Italy 0.3069 697 0.198 2,200 1,503 3
Spain 0.1533 348 0.198 2,200 1,852 6
Netherlands 0.3704 842 0.198 2,200 1,358 3
Belgium 0.1226 279 0.198 2,200 1,921 8
F IGURE 6.7 COMPARISON OF YEARLY CO2 EMISSIONS FROM DAIKIN HEAT PUMP AND GAS BOILER IN COUNTRIES WITH
TD = -7. S OURCES:OWN CALCULATIONS
Countries with Td=-11.6°C

Daikin heat pump Gas boiler Absolute Delta Relative Delta
CO2 EF Yearly CO2 EF Yearly Yearly difference in Times less of
electricity CO2 emission gas CO2 emission CO2 emissions yearly CO2
[kg/kWh] [kg] [kg/kWh] [kg] [kg] emissions
Germany 0.3776 960 0.198 2,200 1,240 2.3
Poland 0.7766 1,974 0.198 2,200 226 1.11
F IGURE 6.8 COMPARISON OF YEARLY CO2 EMISSIONS FROM DAIKIN HEAT PUMP AND GAS BOILER APPLIED IN
COUNTRIES WITH T D = -11.6. S OURCES : OWN CALCULATIONS
As seen from the graphs, yearly emissions from the use of heat pumps are significantly lower than emissions from
gas boiler providing the same air and water heating and cooling for the household in all the countries studied.
Since the EFs of electricity are only expected to decrease in the near and long term due to investments in renewable
energy by the EU and UK, heat pumps will also continue to have less use phase emissions, helping them to achieve
their climate goals. Below is more detailed analysis of emission savings per country:
Thanks to the lowest EF of electricity grid in the study (0.041 kg/kWh), a Daikin heat pump in France saves the
most CO2 emissions among the countries studied. Installing a Daikin heat pump instead of a gas boiler in France
can help decrease yearly CO2 emissions by 2,107 kg: 24 times less carbon intensive during the use phase.
A Daikin heat pump installed instead of a gas boiler in the UK saves 1,695 kg of CO2 every year and is four times
more carbon efficient than a gas boiler during the use phase.
A Daikin heat pump installed instead of a gas boiler in Italy saves 1,503 kg of CO2 every year and is three times
A Daikin heat pump installed instead of a gas boiler in Spain saves 1,852 kg of CO2 every year and is six times
A Daikin heat pump installed instead of a gas boiler in the Netherlands saves 1,358 kg of CO2 every year and
is three times more carbon efficient than a gas boiler during the use phase.
A Daikin heat pump installed instead of a gas boiler in Belgium saves 1,921 kg of CO2 every year and is eight
times more carbon efficient than a gas boiler during the use phase.
A Daikin heat pump installed instead of a gas boiler in Germany saves 1,240 kg of CO2 every year and is 2.3
times more carbon efficient than a gas boiler during the use phase.
In Poland, with the highest EF for electricity grid (0.7766 kg/kWh), the yearly carbon footprint of heat pump use
is 11 % lower than a gas boiler, with savings of 226 kg every year. This is an advancement in decarbonisation of

the heating sector in Poland, which will only accelerate with the transition from electricity generated from coal
combustion (most used in Poland) to less carbon intensive alternatives.
6.5 Conclusion
The urgency of addressing climate goals and taking immediate action is becoming increasingly apparent.
Investment in technologies that align with these goals is crucial as we look ahead. In the EU, the widespread adoption
of heat pumps holds significant potential in achieving the region’s decarbonisation and climate objectives. By
significantly reducing greenhouse gas emissions, enhancing energy efficiency and facilitating the transition to
renewable energy sources, heat pumps can play a pivotal role in shaping a sustainable future. This is supported
by comprehensive life cycle assessments and the production of environmental product declarations, which are
readily available and can be used to evaluate the sustainability of heat pumps. A case study comparing heat
pumps to gas boilers further emphasises the superiority of heat pumps, especially as countries increasingly rely on
renewable energy and see a decrease in the carbon intensity of the electricity grid. With these advances, heat
pumps emerge as a climate-positive solution with far-reaching environmental benefits over traditional gas boilers.
6.6 Environmental impact of refrigerant

6.6.1 Definition and function of refrigerants
Refrigerants are fluid substances or mixtures used in a heat pump and refrigeration cycle to cool or heat a space.
They capture heat and release it to another space using the thermodynamic phenomena of phase changes, in which
a fluid changes to a gas or vice-versa. They usually undergo transitions from a liquid to a gas and back again 180.
Refrigerant is essential for heat pumps. It circulates through the heat pump to absorb heat from the heat source
and transport it to the heat sink where the heat is released. See image below181.
F IGURE 6.9 HOW A HEAT PUMP WORKS SOURCE: IEA THE FUTURE OF HEAT PUMPS (2022)
180 Daikin Applied Europe An insight on refrigerants and Daikin philosophy (2020, July 2)
181 IEA (2022), The Future of Heat Pumps, IEA, Paris, License: CC BY 4.0

There are three major types of refrigerants currently used in the market 182:
• Hydrofluorocarbons or HFCs (e.g. R-410A, R-134a, R-32)
• Hydrofluoro-olefins or HFOs/HFO blend (e.g. R-513A, R-1233zd(E))
• Natural refrigerants (e.g. propane/R-290, CO2/R-744)
The full list of refrigerants used by Daikin and their properties can be found here.
6.6.2 Refrigerant choice

Each application has different characteristics, so there is no one-size-fits-all solution. It is necessary to select the
appropriate refrigerants for each application based on an overall assessment. Daikin believes it is necessary to
assess four basic factors comprehensively: safety, environmental impact, energy efficiency and cost-effectiveness183.
6.6.2.1 Safety
A refrigerant must be safe to use through the entire lifecycle of the equipment. This includes transport, storage,
installation, use, servicing, recovery and recycling. This means that possible hazards such as toxicity or flammability
characteristics, as well as the risk of human error, must be evaluated for each application. While non-flammable
and low-toxicity refrigerants may have safety benefits, they may not be ideal from an environmental point of view.
In addition, some refrigerants may be acceptably safe for one type of equipment but not for others. Thorough risk
assessments are therefore needed for each application.
6.6.2.2 Environmental impact
A core consideration in refrigerant choice is environmental impact. This includes a refrigerant’s ozone depleting
potential (ODP)184 and its potential global warming impact: this is expressed as its CO 2 equivalent, which is the
refrigerant quantity multiplied by its global warming potential (GWP)185.
Heat transfer capacity and heat exchange efficiency of refrigerants are important characteristics that result in
reductions in refrigerant quantity and allow more compact equipment design. Environmental considerations also
include the impact of the refrigerant production process and a refrigerant’s potential to be recycled and reused.
6.6.2.3 Energy efficiency
Daikin carefully considers a refrigerant’s potential to improve the energy efficiency of its equipment in both cooling
and heating functions across an extreme range of climate conditions, including very hot and very cold environments.
This is an important consideration, as energy consumption for cooling, heating and refrigeration has a substantial
impact on the total energy consumption of buildings and countries.
Depending on how electricity is generated in each country, its efficient use has a large indirect impact on climate
change by reducing CO2 emissions. Energy efficiency is therefore critical in choosing the right refrigerant for a
given application.
6.6.2.4 Cost-effectiveness
It is important to provide consumers access to affordable solutions for their homes and businesses. In addition, to
reduce the environmental impact, cost-effectiveness should be considered in terms of dissemination. For instance, is
the refrigerant easy and inexpensive to install and maintain? Does it allow for compact cost-efficient designs to
minimise investment costs? Does it contribute to reducing overall system operation and maintenance costs? Is
recycling feasible and cost-effective? Would possible risk mitigation measures be cost-effective? These are factors
to consider when selecting cost-effective refrigerants.
In this paper we will focus on the environmental impacts of the refrigerant.
6.6.3 Environmental impacts: ODP and GWP
6.6.3.1 Ozone depletion potential
Among the first commonly used refrigerants were chlorofluorocarbons (CFCs). However, in the 1980s it was found
that they contributed to ozone layer depletion alongside nearly 100 synthetic chemicals. When released to the
182 FAQ | Impact of refrigerants | Influence | Daikin Global. (n.d.).

183 Key considerations for refrigerant choice | Influence | Daikin Global. (n.d.).
184 Ozone-depleting potential: A value indicating the intensity of ozone layer destruction by various substances based on the ODP of CFC-11
as a standard.
185 Global warming potential: A value indicating the degree of contribution to global warming of various GHGs based on CO2 as a
standard.

atmosphere, those chemicals damage the stratospheric ozone layer, the shield that protects humans and the
environment from harmful levels of ultraviolet radiation from the sun 186.
In 1987, with the adoption of the Montreal Protocol, restricting the production, consumption and trade of particular
substances in order to protect the ozone layer, CFCs, having high ODP, were completely abandoned and
hydrochlorofluorocarbons (HCFCs, an alternative to CFCs) were phased out almost entirely in developed countries
and will be by 2030 in developing countries. Aligned measures under the Montreal Protocol successfully restrained
ODP, which is projected to recover by the middle of this century 187.
Currently used and developed refrigerants must have zero ODP value.
6.6.3.2 Global warming potential
To eliminate impact on the ozone layer, HFC refrigerants have been used as an alternative to HCFCs because of
their zero ODP value. However, HFCs and most conventional refrigerants absorb infra-red radiation and therefore
trap heat, and thus are greenhouse gases 188 that contribute to climate change. The second most important
environmental criteria of refrigerants became their GWP, a relative measure that compares the warming potential
of a particular gas to CO2 over a specific time period, usually 100 years. The higher the GWP value, the more
potent the greenhouse gas is in terms of its ability to trap heat compared to CO2.
F IGURE 6.10 GWPS OF VARIOUS REFRIGERANTS 189. S OURCE: DAIKIN GLOBAL
As seen from the infographic, the GWP of R410A, a commonly used HFC refrigerant, is 2,088, while the newer
refrigerant R-32 has about three times less GWP: 675. The environmental impact of refrigerants also depends on
factors such as leakage rates, energy efficiency of the equipment using them, and proper handling during
installation, maintenance and disposal.
Daikin has identified R-32 as a very beneficial refrigerant for single and multi-split air conditioners, packaged air
conditioners and heat pumps. Daikin believes the transition to R-32 will help to meet both the HFC phase-down
schedule and the HCFC phase-out schedule (see “Commitment to use lower GWP refrigerants”). If all currently used
R-410A refrigerant was replaced with R-32, the total CO2 equivalent impact of HFCs could be reduced by up to
800 million tons of CO2 compared to business-as-usual scenarios, with a significantly reduced amount of indirect
CO2 emissions due to lower energy consumption. We will continue to challenge ourselves in the technical
development to expand the range of our products using R-32 .
6.6.4 Refrigerant in the LCA approach
As described in the section “Carbon footprint of heat pumps”, Daikin performs cradle-to-grave LCA of its products.
We assess the environmental impacts of our products from manufacturing to waste disposal. Within the LCA
approach, refrigerant is considered at the following stages:
• Manufacturing (A1-A3)
186 UN Environment Programme. (n.d.). About Montreal Protocol.

188 Wuebbles, D. J. (1994). The role of refrigerants in climate change. International Journal of Refrigeration-revue Internationale Du Froid,
17(1), 7–17.
189 R-32, The Most Balanced Refrigerant | Benefits of Daikin Technology | Daikin Global. (n.d.).

o Momentary leakage of refrigerants during manufacturing stage is taken as 2 % on average.
• Installation (A5)
o The installation resources included are copper tubes for refrigerant.
o In accordance with regulation 1516/2007, all necessary measures are taken to avoid
momentary emissions. Thus, refrigerant leaks during the installation stage are considered zero.
• Use phase (B1-B7)
o The impacts of refrigerant leakage, equipment maintenance and refrigerant refilling.
• End of life (C1-C4)
o The EOL scenario is based on the methodology described in PSR-0013-ed2.0-EN-2019 12 06.
o 90 % of the total refrigerant is recovered at the EOL and the rest is considered direct emission.
Of the refrigerant recovered, 10 % is incinerated without energy recovery and 90 % is
regenerated for reuse.
• Beyond the life cycle (D)
o Refrigerant recovery and recycling.
In terms of carbon footprint, refrigerants are in the top 5 most contributing materials used in heat pumps, with high
carbon intensive materials such as printed circuit board and metals (aluminium, steel, copper).
Among all life cycle stages, the use phase (B1-B7) is currently dominant. B1-B7 stage considers a product’s energy
use over the reference life time (e.g. 22 years for Daikin heat pumps), refrigerant leakage (default value of 2 %)
and refilling (the refill threshold is 90 % of the total load, the number of refills is usually three). While refrigerant
refilling contributes to less than 1 % of a product’s total carbon footprint, refrigerant leakage during use phase
might constitute from 2 % up to 19 % of the footprint: the higher the GWP of refrigerant, the greater the impact.
6.6.5 No leakage, no carbon emission

As mentioned, the environmental impact of refrigerants also depends on factors such as leakage rates, energy
efficiency of the equipment using them and proper handling during installation, maintenance and disposal. The
standard refrigerant leakage rate considered in LCA for Daikin heat pumps is 2 % (defined by PSR rules190).
However, if refrigerant is safely contained, there is no leakage and therefore, refrigerant is not released into the
atmosphere.
Daikin follows a comprehensive approach to decreasing refrigerant’s impact on environment and focuses on
leakage prevention and recovery.
• Daikin products are constructed in such a way to prevent refrigerant leakage e.g. by limiting vibrations
of piping and by decreasing influence of the environment that might cause aging of coil materials.
• Most units are of hermetic type and use the Daikin Tightfit 191 connection, which is a connection of
refrigerant piping without brazing or using special tools. It meets stringent safety requirements and
provides leak-free tightness.
• Every unit produced goes through a thorough leakage test before it is charged with refrigerant and leaves
the manufacturing site.
• Units are installed by certified technicians who perform their work in accordance with the latest F-gas
regulation (valid in the EU) to ensure no leakage happens at the installation phase.
• At the end-of life stage, Daikin provides the best refrigerant treatment available in the region.
6.6.6 Refrigerant treatment

6.6.6.1 Why assess the carbon footprint of refrigerant treatment methods?
As a leading provider of heating, cooling, ventilation, air purification, service and refrigeration solutions, we are
committed to reducing our greenhouse gas emissions to net zero by 2050. To achieve this, we assess the whole life
cycle of our equipment, including materials, factory, use, end of life etc.
190 Product-specific rules (PSR). PSR is an addition to product category rules (PCR). PCR sets the standardised and generic rules for conducting
LCAs and preparing EPDs for a product category. PSR provides additional and tailored rules specific to an individual product within that
category. Daikin follows PSR-0013-ed2.0-EN-2019 12 06.
191 Daikin Europe N.V. (n.d.). Tightfit. Fireless copper pipe connector designed for HVAC equipment.

Part of this involves evaluating and comparing the impact of two refrigerant treatment methods after recovery:
refrigerant reclamation for reuse versus refrigerant destruction and virgin production. A third party, TCO2 Co. Ltd,
has assessed 192 the environmental impact of these two methods. TCO2 Co. Ltd is an independent Japanese
consulting firm focusing on sustainability insights and providing environmental impact and cost calculation tools. The
assessment was conducted in 2022 and validated by Prof Norihiro Itsubo from Tokyo City University.
Assessed treatments methods
1. Treating refrigerant as waste: Destruction of used refrigerant and virgin production of new refrigerant.
2. Treating refrigerant as a resource: Reclaimed refrigerant for reuse.
Results
When comparing method 1with method 2, the study shows that the carbon footprint of reclaimed refrigerant reuse
lies between 72 % and 90 % less than that of virgin refrigerant production, depending on the refrigerant.
Expressed in kg CO2-eq/kg of refrigerant, the study shows a reduction of 72 % for R-410A, and 90 % for R-
134a and R-32. The assessment is based on averaged primary data from seven locations in Japan and Europe for
R-410A and R-134a. For R-32, it is based on the average of primary data and estimated data based on R-410A.
The study took into account the impact of the production, destruction and reclamation process, as well as the impact
of collection, transport etc. related to this activity.
F IGURE 6.11 FROM ASSESSING THE CARBON FOOTPRINT OF RECLAIMED REFRIGERANT FOR REUSE AND VIRGIN
REFRIGERANT PRODUCTION (D AIKIN E UROPE , 2023) pdf
6.6.7 Daikin Loop for refrigerant recycling

Loop by Daikin is our revolutionary refrigerant programme. It is an essential part of our commitment to creating a
sustainable future. In 2019, Daikin established its own refrigerant reclamation facility in Germany.
Recover, Reclaim, Reuse form the core principle of our new all-in-one Loop by Daikin service.
F IGURE 6.12 S OURCE: DAIKIN
192 Assessing the carbon footprint of reclaimed refrigerant for reuse and virgin refrigerant production (Daikin Europe, 2023)

F IGURE 6.13 S OURCE: DAIKIN
Daikin Loop helps to avoid the production of more than 400,000 kg of virgin refrigerant every year. More than
20,000 Loop by Daikin Variable Refrigeration Volumes (VRV) units (using reclaimed refrigerant) have already
been sold193.
6.6.7.1 Scope of LOOP by Daikin

Countries
Loop by Daikin is currently applicable only for units sold in EU member states, UK, Bosnia-Herzegovina, Serbia,
Montenegro, Kosovo, Albania, North Macedonia, Iceland, Norway and Switzerland.
Refrigerants
• R-410A
• R-134a
• R-32 (Daikin Loop for R-32 refrigerant is currently only available on request and on a project basis for
chillers/heat pumps produced in Italy (EWAT-B-, EWYT-B-, EWAT-CZ, EWYT-CZ).)
Products
The Daikin Loop programme currently covers multiple VRV units (including VRV + heat pump products) and chillers
(see full list in Annex X). The recovery programme for low GWP refrigerant R32, used in new heat pump products,
is under consideration. Daikin uses a mix of reclaimed and virgin refrigerant to charge new products. It is the only
193 L∞p by Daikin. (n.d.). Daikin website.

manufacturer actively promoting and supplying units with reclaimed refrigerants, for a wide range of products,
from screw and scroll compressor units to centrifugal compressor machines.
6.6.8 Commitment to use lower GWP refrigerants

After the conclusion of the Paris Agreement in 2015, the Montreal Protocol parties agreed to phase down HFCs in
CO2 equivalent under the Kigali Amendment in October 2016. The Kigali Amendment entered into force in January
2019 and provides a roadmap (see Figure below) for gradual elimination of refrigerants with high GWP.
F IGURE 6.14 HCFC PHASE -OUT AND HFC PHASE-DOWN SCHEDULE IN MONTREAL PROTOCOL . S OURCE: DAIKIN GLOBAL
“R EASONS THAT DAIKIN ADDRESSES THE E NVIRONMENTAL IMPACT OF REFRIGERANTS ”
Conversion to lower GWP refrigerants is essential to achieve the goals set in the Paris Agreement and reach global
climate goals. Lower GWP refrigerants are used more every year. In 2011, Daikin began offering free access to
multiple patents related to the production of equipment using R-32 refrigerant to help curb global warming.
6.6.8.1 Daikin’s position on the Kigali Amendment

Daikin welcomes the Kigali Agreement for an HFC phase -down in CO2 equivalent under the Montreal Protocol
and follows a comprehensive approach to choosing refrigerants that have no impact on the ozone layer and a
lower global warming impact.
• Daikin is aligned with the Kigali Amendment for an HFC phase-down under the Montreal Protocol.
• The main tenet of Daikin’s policy is diversity of refrigerants and reducing impact via a lifecycle approach.
• Daikin has identified R-32 as a very beneficial refrigerant for single and multi-split air conditioners,
packaged air conditioners and heat pumps.
• Daikin believes the transition to R-32 will help to meet both the HFC phase-down and HCFC phase-out
schedule. We are in the process of evaluating and identifying suitable refrigerants for other applications.
• To mitigate future global climate change, it is important to take a “sooner, the better” approach. As soon
as the most balanced and feasible solution for an application is found, Daikin will commercialise and
disseminate the technology to contribute to efforts to mitigate global climate change.
6.7 Conclusions
Refrigerants are essential for heat pumps, allowing them to efficiently transfer heat and satisfy user demands for
air and water heating and cooling. Refrigerants are carefully chosen for each application based on an overall
assessment. In this assessment, Daikin considers four basic factors: safety, environmental impact, energy efficiency

and cost-effectiveness. The current most suitable solution for Daikin heat pumps is R-32 refrigerant with GWP three
times lower than its predecessors. Our Daikin Loop programme gives new life to old refrigerants.
Daikin fully supports the 2016 Kigali Amendment to the Montreal Protocol. We will continue to challenge ourselves
technically to expand the range of our products using R-32 and continue developing appropriate refrigerants for
each application with a lower GWP.

Acknowledgements
Femke de Jong, Project Manager, Buildings Programme, European Climate Foudation
Stijn Van Hummelen, Managing Director, Cambridge Econometrics
Bart Aspeslagh, Deputy General Manager Daikin Europe Heating & Renewable Sales Business Unit
Herve Pierret, Section Manager Heating Sales Business Unit, Daikin Europe
Daisuke Kakinaga, Project Manager Corporate Communication, Daikin Europe
Patrick Van Beeck, Product Manager Heating, Daikin Belgium
Matthias Elsasser, Section Manager Product Management Heating, Daikin Germany
Matthias Kipper, Product Manager, Sales HQ, Daikin Germany
Magdalena Sawicka-Balcerzak, Product Manager Residential, Daikin Poland
David Díaz Ramiro, Sales Heating Assistant Manager, Daikin Spain
Marco Gruppuso, Project Engineer, Daikin Italy
Hamid Salimi, Product Specialist – Heating, Daikin UK, Product Management CCC
Martin Passingham, Product Manager – DX, Daikin UK, Product Management CCC
An-Sofie Deprez, FINN Agency
Stefaan Vanderstraeten, Senior Knowledge Field Manager, Daikin Europe Environmental Research
Dirk Dhont, Mentor, Digital Business Development, Daikin Europe
Anthony Patrier, Product Marketing Manager, Daikin France Heating Sales Business Unit
Benoit Bihel, Heating Product Marketing Team Leader, Daikin France Heating Sales Business Unit
Iveta Van Driessche, Digital Business Analyst, Daikin Europe, Digital Business Development
Agnieszka Cieślakowska, Marketing Communications Officer Heating, Daikin Europe, Heating & Renewables
Sales Business Unit

Bibliography
Foreword
Legal documents
1 Communication from the Commission to the European Parliament, the European Council, the Council, the European
Economic and Social Committee and the Committee of the Regions REPowerEU Plan COM/2022/230 final
Section 1: Impact of heat pump installation on property value
Legal documents
6Directive
2010/31/EU of the European Parliament and of the Council of 19 May 2010 on the energy
performance of buildings (recast)[2010]OJ L 153/13
8DIN V4108-6 Wärmeschutz und Energie-Einsparung in Gebäuden - Teil 6: Berechnung des Jahresheizwärme- und
des Jahresheizenergiebedarfs
9DIN V4701-10 Energetische Bewertung heiz- und raumlufttechnischer Anlagen - Teil 10: Heizung,
Trinkwassererwärmung, Lüftung
10DIN V18599 Energetische Bewertung von Gebäuden - Berechnung des Nutz-, End- und Primärenergiebedarfs
für Heizung, Kühlung, Lüftung, Trinkwarmwasser und Beleuchtung - Teil 1: Allgemeine Bilanzierungsverfahren,
Begriffe, Zonierung und Bewertung der Energieträger
11Gesetz zur Vereinheitlichung des Energieeinsparrechts für Gebäude und zur Änderung weiterer Gesetze Vom 8.
August 2020
12 Richtlinie
für die Bundesförderung für effiziente Gebäude – Einzelmaßnahmen (BEG EM) vom 9. Dezember 2022
(Fundstelle: BAnz AT 30.12.2022 B1)
14 Code de la construction et de l'habitation
15 LOI n° 2018-1021 du 23 novembre 2018 portant évolution du logement, de l'aménagement et du numérique
16Décret n° 2021-19 du 11 janvier 2021 relatif au critère de performance énergétique dans la définition du
logement décent en France métropolitaine
17 Décret n° 2002-120 du 30 janvier 2002 relatif aux caractéristiques du logement décent pris pour l'application
de l'article 187 de la loi n° 2000-1208 du 13 décembre 2000 relative à la solidarité et au renouvellement urbains
21SAP 10.2: Government's standard assessment procedure for energy rating of dwellings: Version 10.2 (11-04-
2023)
22 Appendix S: Reduced Data SAP for existing dwellings
23 Ofgem Energy Company Obligation (ECO4) Guidance: Delivery V1.1
27 Le norme tecniche di riferimento per la stima delle prestazioni energetiche degli edifici UNI/TS 11300
28Decreto legislativo 19 agosto 2005, n. 192 Attuazione della direttiva 2002/91/CE relativa al rendimento
energetico nell'edilizia. (GU Serie Generale n.222 del 23-09-2005 - Suppl. Ordinario n. 158)
35 Real Decreto 235/2013, de 5 de abril, por el que se aprueba el procedimiento básico para la certificación de
la eficiencia energética de los edificios.
37 Ley Orgánica 2/2006, de 3 de mayo (BOE del 4 de mayo), de educación (LOE)
38 RealDecreto 1627/1997, de 24 de octubre, por el que se establecen disposiciones mínimas de seguridad y de
salud en las obras de construcción.
39 Dz.U. 2014 poz. 1200 Ustawa [act] z dnia 29 sierpnia 2014 r. o charakterystyce energetycznej budynków

40 Rozporządzenie Ministra Infrastruktury i Rozwoju z dnia 27 lutego 2015 r. w sprawie metodologii wyznaczania
charakterystyki energetycznej budynku lub części budynku oraz świadectw charakterystyki energetycznej
41 Dz.U.2015.376 Rozporządzenie [Ordinance] ministra infrastruktury i rozwoju z dnia 27 lutego 2015 r. w sprawie
metodologii wyznaczania charakterystyki energetycznej budynku lub części budynku oraz świadectw
charakterystyki energetycznej
43Dz.U.2015.376 ROZPORZĄDZENIE [Ordinance] MINISTRA INFRASTRUKTURY I ROZWOJU 1 z dnia 27 lutego
2015 r. w sprawie metodologii wyznaczania charakterystyki energetycznej budynku lub części budynku oraz
świadectw charakterystyki energetycznej
71LOI n° 2021-1104 du 22 août 2021 portant lutte contre le dérèglement climatique et renforcement de la
résilience face à ses effets (1)
90 DECRETO-LEGGE 19 maggio 2020, n. 34 Misure urgenti in materia di salute, sostegno al lavoro e all'economia,
nonche' di politiche sociali connesse all'emergenza epidemiologica da COVID-19. (20G00052) (GU Serie
Generale n.128 del 19-05-2020 - Suppl. Ordinario n. 21)note: Entrata in vigore del provvedimento: 19/05/2020
Web pages
7 European Commission – DG Energy: Certificates and inspections
18 Diagnostic de performance énergétique – DPE; Ministère de la Transition écologique et de la Cohésion des
territoires, Ministère de la Transition énergétique
19Energy balance – Engie.fr
24 Gemserv – part of Talan International Consulting Group
26 UK findings of the IEE funded project Episcope
29 Acea Energia - Nuova classificazione energetica edifici: cos'è e come migliorarla
30 Descrizione dell’edificio di riferimento e parametri di verifica – Requisiti minimi Appendice A
31 Davide Rosa – Studio tecnico Home page
32 Edilclima Engineering & Software – About us
36 Calificación de la eficiencia energética de los edificios – Ministerio de Industria, Energía y Turismo
45 Nederlandse technische afspraak NTA 8800:2023 (nl) Energieprestatie van gebouwen - Bepalingsmethode
46 Woonbewust.com - Het nieuwe energielabel voor woningen. Wat verandert er in 2021?
48 Energy performance certificates (Flanders) – Belgium.be
49 Energy performance certificate for a dwelling – Service Public de Wallonie
50 EPB certificate for residential units – Brussels-Capital Region
51 What is seasonal efficiency (SCOP and SEER)-Daikin.eu
64 Collins Dictionary, definition of “utility function”
75 Knight Frank “Improving your EPC rating could increase your home’s value by up to 20%” (2022)
77 Buyers paying significantly more for homes with low-carbon technology, as energy prices rise (2022)
85 NVM “De waarde van het energielabel – investeren in duurzaamheid loont steeds meer” (2022)
86 NVM “Effect van beter energielabel op woningwaarde groter dan ooit” (2023)
92 REbuild 2023: l’efficienza energetica della casa ne aumenta il valore fino al 40% (2023)
Official Reports
53 BPIE Energy performance certificates across the EU (2014)
69 Notaires de France “La valeur verte des logements en 2021” (2022)
73 – 74 Energy performance ratings and house prices in Wales: An empirical study (2016)

76 Better home, cooler planet: how low-carbon technologies can reduce bills and increase house value (2022)
84 Tilburg and Maastricht University “Rood energielabel doet steeds meer pijn bij woningverkoop” (2021)
93 European Commission (DG Energy) “Energy performance certificates in buildings and their impact on transaction
prices and rents in selected EU countries” (2013)
Scientific research
42 A. Alsabry, K. Szymański, B. Michalak “Energy, Economic and Environmental Analysis of Alternative, High-
Efficiency Sources of Heat and Energy for Multi-Family Residential Buildings in Order to Increase Energy Efficiency
in Poland” Alsabry, Szymánski, Michalak (2023)
54D.Brounen, N.Kok, J. Menne “Energy Performance Certification in the Housing Market Implementation and
Valuation in the European Union” (2009)
55 D.Popescu, S. Bienert “Impact of energy efficiency measures on the economic value of buildings” (2012)
56M. Hyland, R.C. Lyons, S. Lyons ”The value of domestic building energy efficiency — evidence from Ireland”
(2013)
57 A.
Pérez-Alonso, A. Ramos, S. Silva “Valuing Energy Performance Certificates in the Portuguese Residential Sector”
(2015)
58S. Stanley, R.C. Lyons, S. Lyons “The price effect of building energy ratings in the Dublin residential market”
(2015)
59F. Fuerst, E. Oikarinen, O. Harjunen “Green signalling effects in the market for energy-efficient residential
buildings” (2016)
60 M. H. Wahlström “Doing good but not that well? A dilemma for energy conserving homeowners” (2016)
61 P.
Taltavull, I. Anghel, C. Ciora “Impact of energy performance on transaction prices: Evidence from the apartment
market in Bucharest” (2017)
62A. Khazal, O.J. Sønstebø “Valuation of energy performance certificates in the rental market – Professionals vs
Non professionals” (2020)
63 Cajias, Fuerst, and Bienert “Tearing down the information barrier: the price impacts of energy efficiency ratings for
buildings in the German rental market” (2019)
65 Taruttis and Weber “Estimating the impact of energy efficiency on housing prices in Germany: Does regional
disparity matter?” (2022)
66 Leboullenger et al. “Is there a market value for energy performance in a local private housing market?” (2018)
67 Civel
“Capitalization of energy labels versus Techno-economic assessment of energy renovations in the French housing
market.” (2020)
68 C. Qin and C. Stuart “Bertrand versus Cournot Revisited” (1997)
70 Creti “Greenium or manipulation? An analysis of the French housing market” (2021)
72Fuerst, McAllister, Nanda and Wyatt “Does energy efficiency matter to home-buyers? An investigation of EPC
ratings and transaction prices in England” (2015)
78 A. de Ayala, I. Galarraga, J. V. Spadaro “The price of energy efficiency in the Spanish housing market” (2015)
80 C.M.Duarte, A. Chen “The evolution of energy efficiency impact on housing prices. An analysis for Metropolitan
Barcelona” (2018)
81 C.M.Duarte, A. Chen “Uncovering the price effect of energy performance certificate ratings when controlling for
residential quality” (2022)
82 D. Brounen and N. Kok “On the economics of energy labels in the housing market” (2011)
83 A. Chegut, P. Eichholtz, R. Holtermans “Energy Efficiency and Economic Value in Affordable Housing” (2016)

87 E.Fregonara, D.Rolando, P.Semeraro, M.Vella “The impact of Energy Performance Certificate level on house
listing prices. First evidence from Italian real estate” (2014)
88 S.Copiello “Achieving affordable housing through energy efficiency strategy” (2015)
89F.Tajani,P. Morano,F. Di Liddo, E. Doko “A Model for the Assessment of the Economic Benefits Associated with
Energy Retrofit Interventions: An Application to Existing Buildings in the Italian Territory” (2022)
91A. Bisello, V. Antoniucci, G. Marella “Measuring the price premium of energy efficiency: A two-step analysis in
the Italian housing market” (2020)
Section 2: Savings Projections in time
Web pages
100 Link to the European Commission webpage “EU Emissions Trading System (EU ETS)”
101 Global Energy and Climate Outlook - CO2 intensity of electricity generation (Enerdata)
105 Daikin ERGA Low-temperature Heat Pump (Refrigerant Split)
Official Reports
94Cambridge Econometrics and The European Climate Foundation “Modelling the socioeconomic impact of zero
carbon housing in Europe final” (2022 – 2023)
95Cambridge Econometrics and The European Climate Foundation “Modelling the socioeconomic impact of zero
carbon housing in Europe final” (2022 – 2023)
102 Cambridge Econometrics and The European Climate Foundation (2022 – 2023); European Commission “Excel
files for MIX-CP scenario”
103 EU reference scenario 2020 - Energy, transport and GHG emissions : trends to 2050
104Amounts provided by Cambridge Econometrics, originally computed for the paper “Modelling the socioeconomic
impact of zero carbon housing in Europe final” (2022 – 2023)
Section 3: Ban on existing technologies

Legal documents
Gesetz zur Einsparung von Energie und zur Nutzung erneuerbarer Energien zur Wärme- und Kälteerzeugung in
112
Gebäuden* (Gebäudeenergiegesetz - GEG)

113 Voorstel van decreet tot wijziging van artikel 4.1.16/2 van het Energiedecreet van 8 mei 2009
114Belgische Federatie der Brandstoffenhandelaars vzw and Others and Lamine v. Flemish Government - Climate
Change Litigation (climatecasechart.com)
127DECRETO LEGISLATIVO 8 novembre 2021, n. 199 Attuazione della direttiva (UE) 2018/2001 del Parlamento
europeo e del Consiglio, dell'11 dicembre 2018, sulla promozione dell'uso dell'energia da fonti rinnovabili.
(21G00214)

Web pages
110 New heating systems: using renewable energy sources as of 2024 | Federal Government (bundesregierung.de)
115Brussels brings together air, climate and energy in an integrated vision: COBRACE and the PACE regional plan
| Citizen - Brussels Environment (environnement.brussels)
117 Commission de Régulation de l’Énergie – Natural gas network
125Government of the Netherlands - News “Netherlands to phase out public funding for new fossil fuel
exports”(2021)
126 Heat pumps mandatory to replace boiler | Business.gov.nl
Official Reports
107 International Energy Agency “The Future of Heat Pumps” (2022)
Communication from the Commission to the European Parliament, the Council, the European Economic and social
108
Committee and the Committee of the Regions Eu 'save energy' 2018

111 Wohnsituation privater Haushalte - Fachserie 15 Sonderheft 1 - 2018 (destatis.de)
116 International Energy Agency (IEA) “France 2021 Energy Policy Review” (2021)
118 Ministére de la transition écologique et solidaire “Stratégie francaise pour l’énergie et le climat -
Programmation pluriannuelle de l’énergie 2019-2023; 2024-2028” (2019)
119 Premiére Ministre; Secrétariat general á la planification écologique “La planification écologique dans les
bâtiments – 12 jiun 2023 – Réunion de travail sur la renovation énergétique
120 Gouvernement Francaise – Décarbonation des Bâtiments Ce qui va changer en 2024
121 Gouvernement Francais - Dossier de concertation “Accélérer la decarbonation du secteur du bâtiment” (2023)
123 Department for Business, Energy and Industrial Strategy “Opportunity areas for district heating networks in the
UK - National Comprehensive Assessment of the potential for efficient heating and cooling”(2023)
124Ministry of Housing, Communities and Local Government “The Future Homes Standard: 2019 Consultation on
changes to Part L (conservation of fuel and power) and Part F (ventilation) of the Building Regulations for new
dwellings - Summary of responses received and Government response”(2021)
Section 4: Incentive schemes

Legal documents
129 Bundesförderung für effiziente Gebäude - Infoblatt zu den förderfähigen Maßnahmen und Leistungen
156 Testo del decreto-legge 22 giugno 2012, n. 83 (in supplemento ordinario n. 129/L alla Gazzetta Ufficiale -
serie generale - n. 147 del 26 giugno 2012), coordinato con la legge di conversione 7 agosto 2012, n. 134 (in
questo stesso supplemento ordinario alla pag. 1), recante: «Misure urgenti per la crescita del Paese.» (12A08941)
(GU n.187 del 11-8-2012 - Suppl. Ordinario n. 171 )
157DECRETO 16 febbraio 2016 Aggiornamento della disciplina per l'incentivazione di interventi di piccole
dimensioni per l'incremento dell'efficienza energetica e per la produzione di energia termica da fonti rinnovabili.
(16A01548) (GU Serie Generale n.51 del 02-03-2016)
Web pages
128 Förderprogramm im Überblick - Bundesamt für Wirtschaft und Ausfuhrkontrolle (2023)
130 Afbraak en wederopbouw - Nieuwe maatregel (programma wet bs 30.12.2020) - Federale Overheidsdienst
Financiën
131 A federal crisis plan to combat soaring energy prices – Belgium Official information and services

132 Réduction
temporaire de la tva : panneaux solaires, chauffe-eaux solaires et pompes à chaleur – Service Public
Féderal webstite
133 My Renovation Premium for heat pump – Vlaanderen.
134 Who can apply for My Renovation Premium? | Vlaanderen.be
135 Mijn verbouwpremie - Vlaanderen
136 Simulator premie-aanvragen 2023 – Vlaams Energie & Klimaatagentschap
Prime temporaire - Appareil de chauffage et d'eau chaude sanitaire (jusqu'au 30 juin 2023) – Wallonie énergie
137
SPW
138 Wallonie énergie SPW “Primes Habitation 2023 (à partir du 1er juillet 2023)”
139 Wallonie énegie SPW “Primes Toiture et petits travaux sans audit”
140 Energy Saving Trust 2023
141 Energy Company Obligation (ECO) – Ofgem.gov.uk
142 Notice: Apply for the Social Housing Decarbonisation Fund: Wave 2.1 (closed to applications)
143 Home Upgrade Grant: successful local authorities – Gov.uk
144 Prime énergie "MaPrimeRénov'" - Vous êtes propriétaire occupant - Service PublicRepublique Francaise
145 TVA à taux réduits : pour quels travaux ? | economie.gouv.fr
146 French Government “MaPrimeRénov’ 2024 : accélérons la rénovation énergétique”press kit
147 French Republic webpage “Certificats d'économie d'énergie (CEE) "Standard"”
148 French Republic “Éco-prêt à taux zéro (éco-PTZ)” webpage
149 Program Czyste Powietrze – Ministerstwo Klimatu i Srodowiska
150 Program Czyste Powietrze - Ulga termomodernizacyjna – Ministerstwo Klimatu i Srodowiska
151 RVO - Subsidie voor duurzame energie en energiebesparing koopwoning aanvragen-isde
152 National Government webpage “€210 million extra for insulation and heat pumps”
153 RVO “ISDE: Warmtepomp woningeigenaren”
154 Spanish Government webpage “Plan de Recuperación, Transformación y Resiliencia”
155 European Parliament website “Spain's National Recovery and Resilience Plan: Latest state of play”
Section 5: Optimized utilisation of solar PV technology
Web pages
159 Rijksoverheid - Plan kabinet: afbouw salderingsregeling zonnepanelen
160 Engie Belgium - Zonnepanelen - Je terugdraaiende teller in Vlaanderen: behouden tot 2025 of niet?
Scientific research
158 Photovoltaics report – Frauenhofer Institute for Solar Energy Systems, ISE with support of PSE Projects GmbH –
21/2/2023 –

Official report
163 Solar Power Europe “Solar Powers Heat 2023” (2023)
Section 6: Carbon footprint of heat pumps
Web pages
166 European Union. (2020, March 6). Long-term low greenhouse gas emission development strategy of the
European Union and its Member States.
167 Press corner. (2021, December 15). European Commission - European Commission
169Building decarbonization: How electric heat pumps could help reduce emissions today and going forward.
(2022, July 25). McKinsey & Company
175 Life cycle assessment. (n.d.). European Environment Agency – Life cycle assessment definition
176Ministère de la Transition écologique et de la Cohésion des territoires, Ministère de la Transition énergétique.
(2023). Réglementation environnementale RE2020
177 What is seasonal efficiency (SCOP and SEER) | Daikin
180 Daikin Applied Europe An insight on refrigerants and Daikin philosophy (2020, July 2)
181 IEA (2022), The Future of Heat Pumps, IEA, Paris, License: CC BY 4.0
182 FAQ | Impact of refrigerants | Influence | Daikin Global. (n.d.).
183 Key considerations for refrigerant choice | Influence | Daikin Global. (n.d.).
189 R-32, The Most Balanced Refrigerant | Benefits of Daikin Technology | Daikin Global. (n.d.).
191 Daikin Europe N.V. (n.d.). Tightfit. Fireless copper pipe connector designed for HVAC equipment.
192 Assessing the carbon footprint of reclaimed refrigerant for reuse and virgin refrigerant production (Daikin
Europe, 2023)
193 L∞p by Daikin. (n.d.). Daikin website.
Official Reports
165 AR6 Synthesis Report: Climate Change 2023 — IPCC. (2023). IPCC.
168 Eurostat. (2022, June). Energy consumption in households
169 “European heat pump market and statistics report 2023.” (2023). European Heat Pump Association
170“Building decarbonization: How electric heat pumps could help reduce emissions today and going forward”.
(2022, July 25). McKinsey & Company.
173 “The Future of heat pumps – Analysis” IEA. (n.d.). IEA
Scientific research
171Thomaßen, G., Kavvadias, K., & Navarro, J. P. J. (2021). The decarbonisation of the EU heating sector through
electrification: A parametric analysis. Energy Policy, 148, 111929.
188 Wuebbles, D. J. (1994). The role of refrigerants in climate change. International Journal of Refrigeration-revue
Internationale Du Froid, 17(1), 7–17.


Drivers To Heat Pump Adoption by European Households

Uploaded by

Copyright:

Available Formats

Drivers To Heat Pump Adoption by European Households

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Drivers To Heat Pump Adoption by European Households

Uploaded by

Copyright:

Available Formats

2024

DRIVERS TO HEAT PUMP ADOPTION BY EUROPEAN

Version 1.1 - January 2024

3. Future ban on gas and oil boilers

4. Incentive schemes for air-to-water heat pumps

Drivers to heat pump adoption by European Households 1

6. Environmental impact of heat pumps

5 LCA: Life cycle assessment

Drivers to heat pump adoption by European Households 2

Drivers to heat pump adoption by European Households 3

Drivers to heat pump adoption by European Households 4

Drivers to heat pump adoption by European Households 5

Drivers to heat pump adoption by European Households 6

1.1 The European Energy Performance Label framework

F IGURE 1.1 S OURCE : CERTI BRU THE ENERGY P ERFORMANCE OF BUILDINGS

Drivers to heat pump adoption by European Households 7

Drivers to heat pump adoption by European Households 8

F IGURE 1.2 SOURCE : D EIN-HEIZUNGS BAUER

Year of Starting energy Energy class after heat

To receive tailored advice, please refer to professional energy advisors.

Drivers to heat pump adoption by European Households 9

14 Code de la construction et de l'habitation

2000-1208 du 13 décembre 2000 relative à la solidarité et au renouvellement urbains

Drivers to heat pump adoption by European Households 10

F IGURE 1.4 S OURCE : CEREMA LE NOUVEAU DPE

Drivers to heat pump adoption by European Households 11

1.2 3 United Kingdom

Energy Performance Certificate assessment

19 Energy balance – Engie.fr

Drivers to heat pump adoption by European Households 12

EPC Improvement using heat pumps under ECO4

24Gemserv – part of Talan International Consulting Group

Drivers to heat pump adoption by European Households 13

Archetype 5 Semi-detached 1900-1929 (SW) 93 D-64 EDLA08EV3 C-71 B-87

Archetype 7 End-terrace 2007-2011 (CW) 98 E-50 EDLA08EV3 C-77 A-95

Archetype 8 Mid-terrace Pre-1900 (SW) 105 D-66 EDLA08EV3 C-73 B-89

Archetype 12 Mid-terrace 1967-1975 (CW) 85 E-39 EDLA08EV3 C-71 B-88

Archetype 13 Detached 1983-1990 (CW) 127 F-31 EDLA08EV3 C-72 B-84

Archetype 14 End-terrace 1983-1990 (CW) 74 E-41 EDLA08EV3 C-71 B-90

F IGURE 1.6 S IMULATIONS BY GEMSERV FOR D AIKIN UK

Property archetypes (house types) used

Ten Archetypes Considered

Archetype 1: Archetype 2: Archetype 3: Archetype 4: Archetype 5:

Archetype 6: Archetype 7: Archetype 8: Archetype 9: Archetype 10:

F IGURE 1.7 S OURCE : OWN

SW = solid wall, CW = cavity wall

26 UK findings of the IEE funded project Episcope

Drivers to heat pump adoption by European Households 14

F IGURE 1.8 S OURCE : CERTIFICO. COM

Drivers to heat pump adoption by European Households 15

30 Descrizione dell’edificio di riferimento e parametri di verifica – Requisiti minimi Appendice A

Drivers to heat pump adoption by European Households 16

F IGURE 1.10 S OURCES: EDILCLIMA SIMULATIONS

F IGURE 1.11 E NERGY RATING AND INDEXES FOR

Drivers to heat pump adoption by European Households 17

F IGURE 1.11 S OURCE: DAIKIN'S SIMULATION

37Ley Orgánica 2/2006, de 3 de mayo (BOE del 4 de mayo), de educación (LOE)

Drivers to heat pump adoption by European Households 18

F IGURE 1.12 S OURCE: DAIKIN' S SIMULATIONS