Boosting heat pump deployment through alternative models and skilled installers

Proposals should present the concrete results which will be delivered by the activities, and demonstrate how these results will contribute to the topic-specific impacts. This demonstration should include a detailed analysis of the starting point and a set of well-substantiated assumptions, and establish clear causality links between the results and the expected impacts.

Proposals submitted under this topic should demonstrate how they will for scope A, contribute to stimulate demand for heat pumps in existing buildings, reduce costs and ensure the high quality of installations and for scope B, increase the number of skilled heat pump installers and professionals. Proposals should quantify their results and impacts using the indicators provided for the topic, when they are relevant for the proposed activities. They should also propose indicators which are specific to the proposed activities. Proposals are not expected to address all the listed impacts and indicators. The results and impacts should be quantified for the end of the project and for 5 years after the end of the project.

The indicators for this topic include:

For Scope A:

• Number of new installations triggered by the action, including measures to ensure quality and performance for the end user.
• Number of users and stakeholders benefitting from alternative model set-up and test during the action.
• Number of commitments for replication of alternative models 5 years after the action.
• Investments in sustainable energy (energy efficiency and renewables) triggered by the project (cumulative, in million Euro).
• Primary energy savings triggered by the project (in GWh/year).
• Renewable energy generation triggered by the project (in GWh/year).

For Scope B:

• Number of training schemes and actions developed, upgraded and replicated to support re-skilling or upskilling of professionals, based on high-quality gap analyses.
• Number of professionals trained.
• Number of trainers trained.
• Number of stakeholders and organisations endorsing EU-wide competencies and minimum content guidelines and core material for specialised training programmes contents.

Proposals should also quantify their impacts related to the following common indicators for the LIFE Clean Energy Transition subprogramme:

• Investments in sustainable energy (energy efficiency and renewables) triggered by the project (cumulative, in million Euro) – partly covered as topic-specific indicator.
• Primary energy savings triggered by the project (in GWh/year) – partly covered as topic-specific indicator.
• Renewable energy generation triggered by the project (in GWh/year) - partly covered as topic-specific indicator.
• Reduction of greenhouse gases emissions (in tCO₂-eq/year).

Heat pumps represent one of the key technologies to meet the 2030 EU energy and climate targets and towards the climate neutrality of heating and cooling by mid-century. As part of the REPowerEU^[1] Plan to phase out EU dependence on fossil fuels imports, the European Commission has called for doubling the current deployment rate of individual heat pumps, resulting in a cumulative 10 million units installed across EU Member States by 2027.

In this framework, the aim of this topic is to complement existing legislative and financial incentives at the EU, national and local levels and to facilitate a large-scale rollout of high-quality heat pump installations. In particular, the topic aims to reduce upfront costs and perceived complexity of design and installation as well as to increase the number of skilled installers^[2] and the confidence of end-users.

Proposals should address one of the two scopes below. The scope addressed should be clearly specified in the proposal's introduction.

Scope A: Alternative business and delivery models

Proposals should stimulate large-scale demand for heat pumps in existing buildings, while significantly reducing or spreading over several years investment costs and ensuring high-quality of the installations.

To that end, the proposed actions should tackle specific market barriers and develop, demonstrate, upscale and/or replicate alternative business and/or heat delivery models. These may include, but are not limited to, any of the following: a) heat as a service; b) Pay-for-Performance (P4P) and c) joint procurement actions.

In doing so, proposals should ensure the high quality of installations and that selected buildings are suitable and ready (e.g. in terms of thermal insulation, radiator systems) for heat pump installation prior to any installation and that building heating needs and heat pump size are properly evaluated. To that end, proposals may apply innovative methods/tools simplifying processes and assessments.

Proposals should demonstrate the effectiveness and replicability of the proposed approaches.

The focus of the proposed actions should be at least on space heating; however, this does not preclude considering reversible heat pumps in addition. Actions may address any type of buildings, although multi‐apartment and commercial buildings are especially encouraged. Synergies of heat pumps with PV installations and/or hybrid renewable heating and cooling systems could also be promoted.

Heat pumps should be designed and installed by professionals with relevant qualifications and skills. All relevant stakeholders necessary for the successful implementation of the action should be involved; if not directly involved, their support should be demonstrated in the proposal.

In this context, proposals may put in place new or strengthen existing strategic partnerships between relevant stakeholders (e.g. industry, installers, local authorities, consumer associations, integrated home renovation services) and consider the objective of the European Commission’s Green Deal Industrial Plan for the Net-Zero Age of strengthening, among others, the heat pump supply chain within the EU^[3].

The proposed actions are invited to build on experiences and lessons learned from other relevant projects and programmes^[4].

Scope B: Addressing the shortage of skilled installers and professionals for heat pumps

Launched in 2011, the BUILD UP Skills initiative has been supporting the upskilling of building professionals across Europe to facilitate the achievement of the EU’s climate and energy objectives as well as the implementation of the European Green Deal. The initiative has also supported actions to boost demand for and supply of skilled professionals in the heat pump sector and to facilitate mutual recognition of skills and competencies along the value chain.

Building on the above, proposals should aim to significantly increase the number of skilled heat pump installers and other relevant professionals, thereby reducing the growing gaps in certain markets.

To that end, proposals shall undertake one or more of the following:

• Identify and map profiles and set up actions (e.g. partnerships) to attract and reskill professionals from other sectors with skills transferable to the heat pump value chain.
• Identify and quantify skills and workforce gaps at the local/regional/national level and/or build on existing solid gap analyses and set up actions (e.g. new or upgraded training/qualification schemes) incentivising/facilitating the upskilling of the workforce, especially installers; strengthen skills for professionals to integrate heat pumps as part of building renovation projects and skills for integrated solutions (e.g. heat pumps and PV together, hybrid heating systems combining several technologies and fuels, e.g. hybrid heat pumps, solar thermal with heat pumps, integrated thermal and electric storage solutions, digital control systems etc.).
• Support cooperation between trades and/or among national associations and other relevant stakeholders to develop, test, and disseminate widely agreed EU-wide competencies, content guidelines for specialised training programmes, and core training material replicable and adaptable to local contexts.
• Support the set-up of state-of-the-art training facilities for heat pump installers (excluding infrastructure costs).

While proposals should plan a testing and validation phase, the actual and long-term running of the proposed activities is not within the scope of this topic. Thus, a key element should be a strategy ensuring that the proposed activities will be sustained after the end of the project, linking to available sources of funding at the national and EU level.

In the case of training, proposals should include train-the-trainer activities and provide details on the actual scope and content to be developed, e.g. professional profiles and levels in the European Qualification Framework targeted, thematic coverage, duration of the training and validation mechanisms.

Proposals must be submitted by at least 3 applicants (beneficiaries; not affiliated entities) from 3 different eligible countries.

For Scope A, the Commission considers that proposals requesting a contribution from the EU of up to EUR 1.75 million would allow the specific objectives to be addressed appropriately.

For Scope B, the Commission considers that proposals requesting a contribution from the EU of up to EUR 1.5 million would allow the specific objectives to be addressed appropriately.

Nonetheless, this does not preclude submission and selection of proposals requesting other amounts.

[1] Communication from the Commission of 8.3.2022 to the European Parliament, the European Council, the European Economic and Social Committee and the Committee of the Regions, REPowerEU Plan, COM(2022) 230 final.

[2] According to the International Energy Agency’s estimates, the REPowerEU targets for heat pumps will require an increase in the number of trained heat pump installers from around 40 000 in 2019 to 110 000 by 2030. Source: The Future of Heat Pumps. World Energy Outlook Special Report, International Energy Agency, 2022.

[3] COM(2023) 62 final.

[4] This should include e.g. LIFE projects, the implementation of Air Quality Plans and the implementation of Operational Programmes under ESIF, H2020 projects, Intelligent Energy Europe projects, and other relevant national, local, or regional initiatives.