LIFE Programme Supports Heat Pumps in Europe’s Clean Energy Transition

On 26 January, the International Day of Clean Energy drew attention to practical solutions for building a climate neutral, secure and affordable energy system. Among these solutions, heat pumps stand out as one of the most effective technologies to decarbonise heating and cooling across Europe.

Heating and cooling represent roughly half of the EU’s total energy consumption, with more than 70 percent still relying on fossil fuels. Heat pumps offer a highly efficient alternative, delivering three to five times more energy than they consume and drawing renewable heat from air, ground or water sources. Despite their benefits, high upfront costs and electricity price disparities remain barriers in several markets.

Through the LIFE Clean Energy Transition programme, the EU is supporting the Install.res project, coordinated by the Austrian Energy Agency. The initiative focuses on accelerating heat pump uptake in existing buildings, where renovation challenges, limited information and complex installation processes can delay the shift away from fossil based systems.

Install.res is testing real world demonstration projects across multiple European countries. It works closely with housing providers, financial institutions and energy agencies to pilot integrated solutions combining different heat pump technologies with innovative financing approaches. These include leasing models, heating as a service and joint purchasing schemes designed to lower upfront costs and reduce financial risks for households.

The project has already developed a catalogue of twelve alternative business models and is translating its findings into practical guidance and decision support tools that can be replicated beyond the project’s duration.

Supported by EU climate and housing policies, including the European Green Deal, such initiatives help turn policy ambition into workable market solutions and bring clean heating closer to mainstream adoption.

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Source: European Climate, Infrastructure and Environment Executive Agency