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Dutch heat pump market cools down but long-term need remains
19/3/2025
8 min read
Feature
European demand for heat pumps was insatiable during the energy crisis that started in 2022, with manufacturers investing billions of euros in new production facilities to help energy consumers replace fossil fuel boilers. Although sustainable heating goals remain in place, the market has truly cooled down. Nowhere has this been more pronounced than in the Netherlands, which was one of the fastest-growing heat pump markets during the energy crisis. Energy journalist Karolin Schaps investigates the reasons behind the drop in heat pump demand and what it could mean for Europe’s sustainability and energy security targets.
‘In the Netherlands we say that you’re a thief of your own wallet if you don’t choose a hybrid heat pump when you have to replace your old gas boiler,’ says Josja Roest, Executive Board Member of the Vereniging voor Duurzame Warmte (VDW), the Dutch Association for Sustainable Heat.
The Netherlands saw the number of installed heat pumps skyrocket by 80% between 2021 and 2023 as energy consumers were spurred on by record-high gas prices to phase out gas use in their households where possible. This was complemented by an attractive state subsidy scheme, which is still in place, offering buyers rebates covering around 30% of the purchase and installation costs of a new heat pump, with a minimum of €500. For those struggling to finance the remaining 70%, the government hands out low-interest loans of up to €28,000.
During the energy crisis, the Dutch government also ran a campaign urging residents to use as little gas as possible in a bid to cut down imports from, and therefore dependence on, Russia, in the aftermath of its invasion of Ukraine. The combination of high gas prices, a rush in heat pump installations and the awareness campaign had great impact, with Dutch gas demand falling by a quarter between 2021 and 2023.