Key facts
- Residential heat pump sales in Europe rose 10.5% in the first half of the year.
- 1.16 million heat pumps were sold across 12 European countries.
- Soaring energy prices and electricity tax changes fueled the growth, according to the European Heat Pump Association (EHPA).
- The EHPA advocates for lower electricity taxes and higher taxes on fossil fuels.
- Germany saw heat pump installations become the No. 1 heating technology due to a subsidy scheme.
- The 12 countries included in the data are Austria, Belgium, Switzerland, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Portugal, and Sweden.
Residential heat pump sales across Europe surged in the first half of the year, driven by a combination of geopolitical events that sent oil and gas prices soaring and government initiatives to lower electricity taxes. Homeowners purchased 1.16 million heat pumps across 12 European countries, an increase from 1.05 million in the same period of 2025, according to data from the European Heat Pump Association (EHPA).
The conflict in the Middle East, including Iran's actions regarding the Strait of Hormuz, disrupted oil and gas shipments, pushing crude oil prices as high as $126 a barrel in late April. In response to the volatile energy market and to encourage a shift away from fossil fuels, the European Commission had previously published plans urging EU governments to reduce electricity taxes and accelerate the adoption of renewable energy sources.
The EHPA highlighted that the growth in heat pump sales is closely tied to electricity prices, with lower taxes making these systems more attractive. The association advocates for shifting taxes from electricity to fossil fuels. Germany, for instance, has seen heat pumps become the leading heating technology installed due to a subsidy scheme.
However, the EHPA noted that countries where electricity is taxed more heavily than gas experience slower adoption rates. Belgium, for example, has low heat pump uptake, though planned tax changes for 2026 aim to reduce electricity costs and increase gas costs. Separately, a study by the Centre for Net Zero found that installing solar panels and a battery in a UK home can save an average of £681 annually.