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This subsidy has helped grow the retrofit GSHP market from 2% of the total GSHP market before the subsidy to 13% in 2007. In addition, France has set the objective for 2010 to equip 20% of all new single family homes with GSHPs (~40,000 units per year). Germany has the second largest installed base in Europe. Figure 2‐10 shows the growth of annual heat pump sales in Germany since 1997. Electric utilities have been an ally to the industry through promotion of heat pump benefits. Several utilities offer special heat pump tariffs that benefit the consumer (EHPO 2008). In 2008, the German government instituted a new market incentive program to support renewable energy systems, which the German government defines to include GSHPs. The dramatic boom in sales between 2005 and 2006 was caused by a particularly long winter in 2005‐2006, further increases in energy prices, and the considerable media attention to climate change. Figure 2‐10: German Heat Pump Market Development 1997‐2007 60000 50000 40000 30000 20000 10000 0 1997 1998 1999 2000 2001 2002 2003 2004 Year 2005 2006 2007 HPWH Air‐Water GSHP Source: European Heat Pump Outlook 2008 Note: Heat pump water heaters (HPWH) are used for water‐heating only, as opposed to space‐ heating. Air‐water heat pumps heat a hydronic circuit. Sweden stands out as the most developed market among all European countries, with the highest capacity per capita worldwide (Le Feuvre 2008). The dramatic growth in the domestic market can be attributed to the escalating price of oil and electricity as well as an increase in energy related taxes. In Sweden, heat pumps are the most common space‐heating in both new construction and U.S. Department of Energy 23 Units SoldPDF Image | Ground‐Source Heat Pumps
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