Hydronic heat pumps

How Union-origin requirements could affect heat-pump costs

Compare the proposed final-assembly requirement with a broader EU-production case, then follow the selected equipment premium into the complete installed price.

Core scenario
Heat-pump equipment cost
EU final assembly onlyCommission impact assessment
0%
Broad EU production comparison
60.0%
EU-production cost premium(relative to using Chinese products)
Downstream cost implication
Complete installed price · EU final assembly only
0%
Complete installed price · broad EU production comparison
30.0%
EU-production cost premium(relative to using Chinese products)
What the product contains

A hydronic heat pump supplies heat through a water circuit

Air-to-water hydronic heat-pump schematicAn outdoor unit contains a fan and evaporator, compressor, expansion valve, electronic controls and heat exchanger. A water circuit carries heat into the building.FINISHED HYDRONIC HEAT PUMPFan + evaporatorCompressorExpansion valveControlsHeat exchangerheated waterreturn waterBuilding water circuitradiators or underfloor heating

The proposal attaches the origin condition to the finished hydronic heat pump. It does not impose separate Union-origin quotas on the compressor, valves, heat exchanger or other internal components; the impact assessment describes EU final assembly as the intended production step.

Only hydronic heat pumps are subject to Union-origin requirements in the Commission proposal. Click to show which types of heat pumps are out of scope
In scope

Hydronic heat pumps

They transfer heat to a water circuit for space heating. This includes air-, water-, ground- and waste-heat-source systems that meet the proposal’s definition.

Outside this provision

Non-hydronic heat pumps

Systems that deliver heated air directly, rather than heating space through a water circuit, are not covered by this proposed origin requirement.

01 · Proposed requirement

The Union-origin requirement would only apply to the finished hydronic heat pump

Three years after entry into force, the proposal requires the finished hydronic heat pump to originate in the Union in covered public procurement and household or company support schemes.

No component quota, only final assembly

Only the final product must be of Union origin, meaning its final assembly takes place in the EU.

See the heat pump component reference →
02 · Explore the model

Change the equipment premium and see the installed-cost effect

Because data are scarce, the heat-pump calculation is simpler than for the other products: the installed cost premium is calculated as selected equipment premium × equipment share of complete installed price.

EU-production case

The Commission’s impact assessment finds that final assembly is neither energy- nor labour-intensive and can move to the EU without significantly increasing costs. 0% is therefore used.

Default 0%, following the Commission’s impact assessment. The slider goes up to 30%, the part of the broad EU–China cost gap that is not due to components.
0%
The remainder covers installation and other costs. The 50% default is a rounded reference; manually set values are illustrative.
50%
Linked results

All bars use the same scale.

Heat-pump equipment · final assembly only
0.0%
Complete installed system cost
0.0%
EU-production cost premium(relative to using Chinese products)
Sources

Heat-pump evidence

Open any source for its exact figure, page and comparison basis.

IEA ETP 2026

Representative 12 kW air-to-water units at 85% factory utilisation. The around-60% EU premium is a broad regional production-cost comparison, not a verified Union-origin supply chain.

Commission impact assessment

Following this assessment, 0% is used for EU final assembly. Values up to 30%, the part of the broad EU–China cost gap that is not due to components, can be tested with the slider.

ifeu / German ministry 2026

Installed-price composition varies materially by country, system size and project. 50% is used as a rounded reference, with a 25–60% range; the low endpoint is based on the separate Commission platform anecdote, not this invoice sample.

Heat Pump Accelerator Platform

The 40–50% installation-cost statement implies a 50–60% equipment share if equipment and installation make up the whole price. The 25% equipment-share slider endpoint comes from the separate anecdotal 75% installation figure; it is not a measured average.

JRC 2025

The shares describe the composition of component value, not the share of total installed price and not EU–China cost premiums. They are shown only to explain the product.

COM(2026) 100

After three years, the finished hydronic heat pump must originate in the Union in covered procurement and support schemes. Consumer compensation is capped at 15%, or 20% in energy-poverty schemes. Origin follows the Union Customs Code.