Comment by jillesvangurp

The way a good heat pump works is that you can get about 3-5kwh of heat out of 1 kwh of electricity. So, they can save money over gas even though electricity is more expensive per kwh. And of course gas prices fluctuate quite a bit. Right now Germany is low on gas and gas prices are going through the roof because of the situation in the middle east.

Here in Germany this issue is lack of policy, financing, and a lot of people are renting. I actually pay about > 100/month for gas. I live in a 20 apartment building with a big furnace in the basement for the whole building. A heat pump would be cheaper to run but you'd have to do a big one for the whole building. This is actually a good thing. Big heat pumps can be quite efficient. It's probably cheaper than having to install 20 heatpumps for 20 apartments.

But buying and installing heat pumps costs money. Technically, it is actually an investment (i.e. it has an ROI). If you do this collectively as a building, you'd do it to lower your monthly bills. This is something that should be possible to finance out of those savings (at least partially). That's literally why private home owners install heat pumps and get their money back in 6-10 years typically. Faster if they also invest in solar. And get an EV that also powers from those panels.

But this where things break down in Germany. You need consensus. And financing. And there are home owners that can block things and it's their renters that pay the heating bill so the owners don't care. And so on. And if you are renting, you are not going to pay for this either. So, everybody just coughs up the money every month without even questioning it. My apartment doesn't even have a thermostat or a smart meter for electricity. Apparently that's normal in this country. Germany is just deeply bureaucratic and inefficient. For all the talk about environment, they can't be arsed to do what the rest of the world did decades ago: save some energy with smart meters.

Policy could help here. Mainly clearing up bureaucracy. And maybe some more subsidies/incentives (those already exist) or low interest financing. And a clear political goal to vastly reduce expensive gas imports. Even if the electricity for powering these heat pumps would come from gas powered electricity plants, it would still require a lot less gas. And of course Germany has lots of wind power. I think other countries in the EU are a bit further with their thinking than Germany on this front. On paper it having lots of apartment buildings like mine actually means it is fairly straight forward from a technical point of view to upgrade these buildings.