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Environmentalists are skeptical about subsidies for heat pumps

DR-Inland in Denmark

Tuesday, December 09, 2025 • 11:59 AM UTC - in Denmark

Environmentalists are skeptical about subsidies for heat pumps

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Two out of three homeowners who have received subsidies for heat pumps also had the funds to do so without.

Environmentalists argue that subsidies for the conversion from gas to heat pumps do not provide sufficient effect. (Photo: © Rune Øe, Ritzau Scanpix) 32 min. ago

The state has for several years provided subsidies to homeowners who switch their heating system from oil or gas to a heat pump.

This is done to help the green transition, so that more users use green energy to heat their homes - instead of fossil fuels.

However, even though the intention is good, the method is not necessarily the right one.

This is what environmentalists argue in their latest report, which has examined the effect of the many millions spent on the subsidy program.

And they conclude that the money could have been used on other initiatives that would have resulted in an even larger reduction of greenhouse gases.

This is due in part to the fact that many of the subsidy recipients would have switched to heating their homes with electricity, even without the subsidy.

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Limited climate win from switch

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At the same time, subsidies are given to homeowners who would also have had the funds to switch to a heat pump without the subsidy.

- Our analyses suggest that up to two out of three subsidies are given to homeowners who would have bought a heat pump without the subsidy.

- It is mainly homeowners with high incomes and advanced education who have received subsidies for heat pumps, says Jette Bredahl Jacobsen, who is an environmental economist.

The environmentalists' analysis shows that the future climate benefit of switching from gas heating to heat pumps is limited compared to the one achieved by switching from burning oil.

This is because future gas supplies will be based on climate-neutral biogas.

A total of several hundred million kroner has been spent on the so-called heat pump projects, which have existed since 2020.

In 2025, therefore, 159.7 million kroner has been allocated for the purpose.

In connection with the latest budget, an additional 555 million kroner has been allocated for new subsidy projects in the period from 2027 to 2029.

The next heat pump project will open at the beginning of 2026.

/ritzau/

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