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Residential · Heating and cooling

€1 heat pump: what CAE really covers

€1 heat pump offers exist, but it helps to understand what Spain’s CAE system really funds, when it approaches zero cost and what to expect.

Updated 10 August 2026Reading time : 4 min

You have seen the offer: “install your heat pump for €1”. The CAE system is real and does fund efficient heating and cooling, but with a heat pump the equation differs from insulation. Here is what it truly covers.

See the official sheet and its calculator (RES060)

How CAE funds a heat pump

The mechanism is the same as any CAE measure. Energy retailers must evidence energy savings under Royal Decree 36/2023: they fund efficient measures, keep the certificates generated and use them to meet their quota.

The key idea

CAE reduces — sometimes substantially — what you pay for a heat pump, and in favourable cases it can approach zero cost. But it is not automatic: a heat pump costs far more than blown-in insulation, so the certifiable savings do not always cover 100%.

  1. 01

    You replace inefficient equipment

    An oil or gas boiler, or an old electric system, with a heat pump.

  2. 02

    Final energy savings are calculated

    The consumption difference between the old and new system under the applicable methodology.

  3. 03

    The CAE is generated and transferred

    Those savings are certified and converted into economic value.

  4. 04

    It is deducted from your installation

    The greater the certifiable savings, the lower your cost.

Air-to-air and air-to-water are not the same

With air-to-water replacing an oil or gas boiler, certifiable savings are high and CAE contributes a significant amount. With air-to-air the starting cost is lower but so are the evidenced savings, so zero cost is possible in specific cases rather than as a rule.

Air-to-air

Reversible air conditioning

The classic split unit that cools in summer and heats in winter. Cheaper to install. Certifiable savings depend heavily on the equipment replaced: potential is higher against inefficient electric heating.

Air-to-water · Aerothermal

Heating + domestic hot water

Feeds radiators, underfloor heating and hot water. More expensive to install but with higher evidenced savings. It is the best-defined case in the catalogue (sheet RES060) when replacing a combustion boiler.

When does it truly approach €1?

Cost tends to zero when certifiable savings are large relative to the work. These factors help.

  • You replace a very inefficient system. Oil, old gas or resistive electric heating: the worse the starting point, the greater the evidenced savings.
  • Climate zone with high demand. More heating or cooling hours means more certifiable savings.
  • Well-sized, efficient equipment. A good seasonal performance (SCOP) increases the recognised savings.
  • When a balance will remain. On large equipment, already efficient homes or where savings do not cover the work, a cost remains. The serious approach is to estimate it before installing.

Warning sign

“Guaranteed €1 heat pump” promised over the phone, without seeing your current equipment or home, often does not hold. The savings are real; “€1 for everyone” is not always.

What is certain: a lower bill

Whatever CAE covers, one benefit does not depend on your case: a modern heat pump consumes far less than the system it replaces. For each electric kWh it delivers several kWh of heat.

CAE is also compatible with other routes: the Spanish income-tax deduction for energy renovation and Recovery Plan grants. Combined properly, they reduce the investment noticeably.

50–70%

bill savings when leaving oil, gas or electric heating

2 in 1

heating in winter and cooling in summer

40–60%

possible income-tax deduction, compatible with CAE

Indicative figures. Real savings depend on the replaced equipment, usage and climate zone.

How we process it

We do not promise a number before knowing your case. First we look at your current equipment, what you plan to install and what savings can be evidenced. Then we give an honest estimate of how much CAE covers and what cost, if any, remains. Only afterwards do we build the file: calculation, evidence, documentation and processing through to validation.

Frequently asked questions

So does the €1 heat pump exist or not?
It exists in favourable cases, usually replacing a very inefficient system with strong certifiable savings. It is not a guaranteed outcome for every installation.
Air-to-air or air-to-water for CAE?
Air-to-water (aerothermal) usually evidences more savings and is better defined in the catalogue; air-to-air is cheaper to install. It depends on the home and current system.
Do I need to remove my boiler?
The heat-pump CAE relies on replacing a thermal generator. The details depend on the applicable sheet and are reviewed during the study.
Can CAE be combined with tax deductions and Next Generation grants?
Yes. CAE is an independent mechanism and generally compatible with the tax deduction and Recovery Plan support.
What do we get before installation?
An estimate of how much CAE covers in your case and what cost remains, with no figures we cannot support in writing.

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