Heat pump grants: how to access European and local funds

Heat pump grants have emerged as a key facilitator for those looking to transform the environmental impact of their project. 

Defined as thermodynamic systems capable of transferring and upgrading heat, heat pumps’ main working principle means they don’t produce heat: they extract  and upgrade it. This distinguishes them from heat generation processes like combustion, offering two key environmental advantages.:

• They present outstanding efficiencies in heat transfer. In fact, standard values for well-adjusted heat pumps often involve delivering 3–5 times more heat energy than the electricity they consume.
• They are capable of incorporating various heat sources,including sustainable and alternative energy sources such as geothermal, sewage water, and waste heat from industrial processes, such as from flue gas condensers, data centers, or carbon capture systems.. 

These two advantages have placed heat pumps at a unique vantage point for initiatives such as district heating or industrial heating, and are at the core of government incentives for heat pumps. 

The IEA estimates heat pumps “have the potential to reduce global carbon dioxide (CO2) emissions by at least 500 million tonnes in 2030 – equal to the annual CO2 emissions of all cars in Europe today.” 

As part of the continent’s effort to reach climate goals in cutting down emissions, European public entities have recognized the potential of heat pumps to decarbonize heating. 

In this context, a number of heat pump grants and other financing options have emerged to promote heat pump adoption. As such, below is an overview of the most common requirements for heat pump funding, as well as some of the key opportunities available today.

Requirements for accessing heat pump grants

Currently, large-scale heat pumps are already part of a wide variety of projects and industries in Europe. An implementation that continues growing thanks in part to the increasing number of available government incentives for heat pumps.

Heat pump funding opportunities across European territories are many and diverse. This means applicants must check conditions for their eligibility independently and directly from each funding program. However, here’s an overview of some common requirements to access such opportunities:

Technology requirements

Grants will often specify the types of heat pumps that are eligible. This is particularly true for renewable energy grants, which may exclude certain energy sources, or may only support systems that replace fossil fuels.

An example is Ireland’s Support Scheme for Renewable Heat, which sets specific conditions in terms of technology and design choices, only supporting projects that show:

• Compliance with eco-design standards.
• Heating system design according to building regulations and other relevant regulations.
• Qualified designers and installers who are competent to carry out works.

Minimum power requirements

The minimum power output in heat pumps refers to the lowest heating capacity a heat pump can deliver. Measured in kWt, some heat pump grants establish this as a condition for eligibility, particularly those that aim at specific applications (for instance, industrial heat pumps).

Austria’s ‘Wärmerückgewinnung ≥ 100 kW’ funding represents an example, aimed at projects with a nominal capacity greater than or equal to 100 kW. 

Allowed refrigerants 

Refrigerants are fluids in charge of absorbing and transferring heat. Their impact on heat pump sustainability is crucial, as some refrigerant options drastically reduce greenhouse gas emissions as measured by their Global Warming Potential. 

When it comes to heat pump funding, some opportunities require applicants to employ low GWP options. 

SPF

The Seasonal Performance Factor is yet another marker of heat pump sustainability, this time referring to its efficiency. More specifically, the SPF measures the ratio of total heat energy a heat pump delivers compared to the total electricity it consumes, over an entire heating season. As such, a higher SPF indicates a more energy-efficient heat pump, as it delivers more heat using less electricity. 

Some heat pump grants require specific SPF values, while others may offer better conditions for higher SPFs.

Quantity of emission reduction

Many grants are performance-based, meaning the more CO₂ emissions the heat pump is expected to cut, the more funding it accesses. 

Based on estimations on annual CO₂ reduction in tons, an example of this criteria is Italy’s Transizione 5.0, which varies the amount of funding depending on the energy savings that are achieved (among other factors).

Another example is the Netherlands’ Stimulering Duurzame Energieproductie en Klimaattransitie, which allocates subsidies based on the type of technology and the CO₂ reduction it achieves. Projects in the highest category can receive funding of €400 per tonne of CO₂ saved.

Key heat pump grants in Europe

The following presents some of the key heat pump funding opportunities in eight European countries. Information is based on the European Heat Pump Association guide. When available, updates have been included at the time of writing this article (April 2025).

Denmark

Finland

While this is Finland’s current grant that explicitly mentions energy efficiency, other opportunities exist for obtaining loans and grants that could be applied to heat pump projects. 

Such is the case of the ‘Tutkimus, kehitys ja pilotoint’ project. Available for large companies and small companies, it aims at covering up to 50% costs of research, development and piloting innovation projects.

Norway 

Poland

Two of Poland’s main heat pump funding opportunities were closed at the time of writing this article. This includes ‘Energia Plus’ and ‘Wsparcie dla przemysłu energochłonnego’ programs.

Poland’s energy certificates program ‘System zobowiązujący do efektywności energetycznej (białymi certyfikatami)’ offers funding for projects “resulting in annual energy savings of no less than 10 tonnes of oil equivalent or for a group of actions of the same type whose total effect exceeds 10 toe.” It is run by the Ministry of Climate and Environment.

Sweden

France

While they don’t technically qualify as heat pump grants, other opportunities for heat pump funding in France include the Certificats d’Economies d’Energy (energy savings certificates) and two loans by the French public investment bank Bpifrance, the Prêt Économies d’Énergie and Prêt Vert.

Germany

Asides from these heat pump grants, other interesting funding opportunities in Germany include: 

• Bundesförderung für Energieeffizienz in der Wirtschaft – Förder- wettbewerb EEW, which opens again in May 2025
• Loan program by KfW-Energieeffizienz-programm
• The funding opportunities for pilot and innovation projects in the environmental field as part of the Umweltinnovationsprogramm
• The KfW Energieeffizienz-programm for financing energy efficiency projects, run by the state-owned development bank Kreditanstalt für Wiederaufbau

Italy

Italy also offers the TEE Titoli Efficienza Energetica (or White Certificates), an incentive program for projects that generate savings based on Tonne of Oil Equivalent (TOE). 

ARANER: your allies for heat pump solutions

At ARANER, we offer turnkey heat pump solutions for projects looking to innovate and take their energy efficiency to the next level.

In charge of design, engineering and implementation, we help operators realize their ideas by providing aid in any stage of the project, including projects that receive government incentives for heat pumps.

Want to learn more about how to go ahead with your heat pump project and potentially access heat pump grants? Discover our industrial heat pumps and get in touch with us to speak to our team of experts.