- Heat pumps are three to five times more energy efficient than gas boilers, but high upfront costs and installation challenges still slow adoption in Europe.
- The Install.res project is testing new business models and integrated solutions to make clean heating affordable and accessible in existing buildings.
Heating and cooling account for about half of the European Union’s total energy use. More than 70% of this demand still comes from fossil fuels. Heat pumps offer a cleaner alternative. They are three to five times more energy efficient than gas boilers. They also make better use of renewable energy by extracting heat from air, ground or water. However, high upfront costs and high electricity prices in some markets continue to slow adoption.
The Install.res project aims to close this gap. The LIFE Clean Energy Transition project, coordinated by the Austrian Energy Agency, seeks to strengthen the business case for heat pumps. It focuses on existing buildings, where high costs, limited information and complex installation processes often delay the move away from fossil-based heating.
On the International Day of Clean Energy, project coordinator Herbert Tretter stressed the need for faster deployment. He said heat pumps remain central to Europe’s energy transition but must be simple, affordable and accessible in existing buildings. He noted that Install.res is showing how practical solutions and innovative financing can help households and housing providers switch to clean heating with confidence.
The project has launched real-life demonstration pilots across multiple European countries. It works with housing providers, energy agencies and financial institutions to test integrated solutions. These pilots combine different heat pump technologies with 12 business models, including leasing, heating-as-a-service and joint purchasing.
Install.res has already produced a catalogue of alternative business models and technical systems designed to reduce upfront costs. It will translate these findings into guidelines and decision-support tools that can spread across Europe.
A key takeaway from the project is that technology alone cannot deliver the clean heating transition. Even efficient heat pumps remain out of reach when affordable and accessible business models are absent. Several of the 12 models tested by Install.res show strong potential. This includes service-based and bundled offers that lower upfront costs and shift financial risk away from end users. These models become even more attractive when matched with the right type of heat pump.
Tretter explained that making heat pumps simple, affordable and financially viable remains crucial to unlocking Europe’s clean heating potential.
Heat pumps align with Europe’s wider energy ambitions because they cut greenhouse gas emissions, reduce energy bills and lower reliance on imported fossil fuels. EU initiatives such as the European Green Deal, the Affordable Housing Plan and the Renewable Energy Directive support this direction. Projects like Install.res help turn policy into practice by proving that clean heating can work commercially at scale.