Sweden is the "international role model when it comes to heat pumps" in the view of Günter Schall. The Head of Product Management Heat Pumps at IVT Industrier AB in Tranås, the BBT Thermotechnik GmbH centre of excellence for this product, has been studying developments for some years: "Sweden has by far the most heat pumps in operation of any country in Europe," he declares and cites some solid reasons for this fact: market-ready technology, acceptance by government and society, competent market partners and costeffectiveness.
In 2005 alone, 63,000 newly installed heat pumps went on-stream, around a third of the total for the whole of Europe. At 90 per cent, the market share for heat pumps in new-build singlefamily homes is "higher than in any other European country".

With an eye on environmental protection and attempts to be as efficient as possible in using natural resources, the heat pump has a significant advantage over heating systems fired by fossil fuels as it uses free, renewable energy resources – heat from the ground, the outside air or waste air – which it converts into space heat and hot water.
The energy costs when operating a heat pump are up to 50 per cent below those of other heating systems for the same heat demand.

Market ups and downs

Although a glance at market developments over recent years reveals fluctuations, the overall trend nonetheless is for more and more installed heat pumps.
Schall describes a pioneering phase in the late 1970s, a downturn in the early 1980s, a comeback in the mid-1980s, a period in the doldrums in the early and mid-1990s, a growth phase from the mid-1990s through to the end of that decade and, as far as the current situation is concerned, a sustained boom in the new millennium.

Political factors and strategic state support have each played a significant role in shaping the market position. For example, the heat pump market received its first impetus in the aftermath of the oil crisis. The state promoted the pioneering phase for this technology with interest-free loans.
The first earth probe was installed in Sweden in 1979. Technical problems, poor product quality and defective installations in parallel with a fall in the oil price again caused the downturn – fewer and fewer systems were sold, and only a small number of manufacturers survived.

Fast forward to the comeback in the mid-1980s. The Swedish economy was growing, there was a high number of new building starts, to which could be added high oil prices once more and lower electricity costs. The manufacturers had not stood still and were now offering better products and an improved service.
The heat pump’s image was enhanced by a few major projects, including an order from the Swedish royal family: heat pumps were installed in Drottningholm Castle, with the energy being drawn from the lake in front of the castle.
After the subsequent period in the doldrums until the late 1990s, mainly attributable to the high unemployment rate, retail caution and a lack of grant aid, the necessary conditions for growth were again in place.
Construction activity increased, and decentralised systems bec-ame more and more important: "The heat pump has become more technically advanced, installers have consolidated their expertise and are offering appropriate systems and services to match the units themselves," according to Schall.

From growth to boom

At the start of the new millennium the growth phase turned into a boom. Replacing an old system could now pay for itself in as little as three to five years because of the high oil price and the relatively low capital costs.
The number of newly installed heat pumps grew from about 23,000 in 2000 to some 36,000 units in 2001. The main reasons for this were the explosion in oil and gas prices and thus a trend towards energy savings, plus high taxes on all fuels. "That and a low electricity price mean that switching to a heat pump is a real alternative." Heat pumps now work highly efficiently and are increasingly being used even when renovating heating systems. The state is supporting the installation of heat pumps on the one hand with high-profile reference systems while, on the other hand, providing loans, tax breaks and grants to Swedish house builders.

The clear political signals ensured that the forward-looking technology represented by heat pumps received a boost in Sweden many years ago. "In Germany this upturn is taking place with almost no state support, driven by the dependence on fossil fuels, high prices and an environmental ethos. Germany will leave Sweden behind this year in terms of the number of new installations of heat pumps," according to Schall.