euractiv | Berlin reduces heat pump subsidies amid modest sales number growth, 17 Aug

With energy prices spiking, "using less energy is the cheapest and most efficient contribution to more independence and climate protection and helps to save on energy costs," [Robert Habeck] added.
[...]
On the one hand, 299,500 gas heaters were sold from January to July. On the other, heat pumps, which should make up 100% of heater sales beginning in 2024, saw a modest 25% increase to 96,000 units sold.

To combat the undesirable continued dominance of gas heating, the government continues to provide funding for heater switches*, albeit at a significantly lower rate as of Monday, in order to make the funding budget go further.
[...]
"Owners would need a higher subsidy instead of a lower one if they were serious about switching from fossil to renewable energies," said Felix Pakleppa, CEO of the construction industry association.

H.R.5376 - Inflation Reduction Act of 2022 signed by Biden
omnibus appropriations bill feat. discount pharma prices, corp tax reforms, IRS budget, rebates or tax credits* for HH and corp fuel efficiency retrofit, EV purchase, etc estimated to "reduce U.S. gross domestic product by 0.1% within its first decade and increase GDP by 0.3% in 2050" and "inflation by around 0.1 percentage points" by 2030. The act specifically prohibits combination of fed-funded incentives qualified and administered by "State energy offices", and the most generous subsidies are reserved for new SFR construction and multi-family property "heater switches"--from gas to electric or PV.

personal note: This story resonates with me. 3 years ago I parted with Constellation/BGE for a renewable supplier and pay premium/kwh/therm. I've also recounted here low-income homeowner hurdles to HVAC efficiency "upgrade," state incentives (rare individ grants or low-int loan) to stimulate purchase, and extreme reluctance among contractors/OEM authorized dealers even to replace gas furnace with heat pump. In the latest round of RFPs, contractors have confirmed that Maryland "Whole Home" (fed HOMES funded) programming does not allow them to provide rebates for fuel switching projects; incentives applied only to vertical system efficiency rating.

Theoretically, IRA provisions for states' "HIGH-EFFICIENCY ELECTRIC HOME REBATE PROGRAM" should end Maryland limitation on replacement projects. The thing is: The state first has to apply for funds specifically for that purpose with income-tested formula for awards to HHs.