EU Project Makes Heat Pumps Affordable for Existing Homes

Getting millions of Europeans to ditch their gas boilers just got easier, thanks to a project proving that how you pay matters as much as what you install.

Install.res, a clean energy initiative led by the Austrian Energy Agency, is testing heat pumps in existing homes across Europe with a twist. Instead of asking families to pay thousands upfront, the project explores 12 different business models including leasing, heating as a service, and group purchasing deals.

The timing couldn't be better. Heating and cooling gobble up half of the EU's total energy use, and more than 70% still comes from fossil fuels. Heat pumps offer a three to five times more efficient alternative by pulling warmth from air, ground, or water. But their higher initial price tags have kept many households stuck with outdated gas systems.

"Heat pumps are a cornerstone of Europe's clean energy transition, but their full potential will only be realized if they are simple, affordable and accessible in existing buildings," said Herbert Tretter, who coordinates the project. His team is working with housing providers, energy agencies, and financial partners to show clean heating doesn't require a small fortune or a brand new home.

The project's real world demonstrations test everything from air source to ground source systems, both centralized and individual unit setups. Each pilot matches different heat pump technologies with creative payment options that shift risk away from homeowners.

Early findings reveal something crucial. Technology alone won't win this fight. Even the most efficient heat pump sits on the shelf if families can't afford it or don't understand how it works. The service based models that bundle installation, maintenance, and financing into predictable monthly payments show the most promise.

The Ripple Effect

When clean heating becomes financially viable for existing buildings, the benefits cascade beyond individual comfort. Lower energy bills free up household budgets. Reduced fossil fuel dependence strengthens energy security. Slashed emissions move Europe closer to its climate goals. And a thriving heat pump market creates green jobs in installation, maintenance, and manufacturing.

The project has already published a catalogue of alternative business models designed to work in different markets and building types. Next up are practical guidelines and decision support tools that other countries and regions can adapt long after the project wraps.

This work directly supports the European Green Deal and the EU Affordable Housing Plan, transforming policy ambitions into solutions people can actually use. When innovation meets practical financing, clean energy stops being a luxury and starts becoming the norm.