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Germany provides "replacement" subsidies for household heat pumps charged with natural refrigerants

For Household Heat Pumps Using Natural Refrigerants.

Germany introduced a new federal subsidy scheme for green building HVAC systems on January 1, 2023, focusing on heat pump replacements. Eligible products must have a COP of at least 2.7, with an extra 5% subsidy for those using natural refrigerants (primarily R290/propane) or specific heat sources (non-stackable). Replacing old oil, gas, coal, or night storage heating systems (over 20 years old for most gas equipment) adds a 10% subsidy, covering up to 40% of costs.
The scheme has conditions: equipment must cost over €2,000, and annual energy system renovation allocations per building range from €60,000 to €600,000. By 2024, the required COP may rise to 3.0, potentially demanding system upgrades or better insulation. From 2028, only natural refrigerant heat pumps will qualify. Germany is also drafting a "Blue Angel" label, reserved for household heat pumps using natural refrigerants.

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