The Danish government is set to allocate over 500 million kroner until 2029 to assist homeowners in switching to heat pumps. This initiative aims to provide security for citizens looking to replace gas boilers with a more climate-friendly heating solution.

The funding, as proposed in next year’s budget, will allocate DKK 185 million annually in 2027, 2028, and 2029. This extends an existing subsidy pool that is set to expire after 2026. The move comes as district heating rollout faces challenges due to rising prices, leaving many citizens waiting for alternative heat sources.

Uncertainty regarding financial support for heat pumps has also contributed to a decline in sales, hindering the desired reduction in gas boiler usage. The government intends to provide assurance that financial support will be available until 2029, encouraging homeowners to consider heat pumps even if they were initially considering district heating.

While the financial assistance for heat pumps will take the form of a subsidy in 2026, the government plans to engage with the industry to explore the possibility of transitioning to a deduction scheme in subsequent years. Electrically powered heat pumps offer a more environmentally friendly alternative to gas and oil boilers.

The Ministry of Climate, Energy and Utilities estimates that the allocated funds will facilitate the installation of approximately 6,500 heat pumps each year throughout the duration of the program. The scheme aims to boost the adoption of heat pumps as a sustainable heating option for Danish homeowners.