Published on 30/09/2026 – 7:02 GMT+2
Heat pump installations in European homes increased by 11 percent during the first half of 2026, driven by rising gas prices linked to the Iran conflict.
The energy shock has intensified the EU’s push to move away from fossil fuels, prompting the European Commission to urge member states to reduce electricity taxes.
This tax relief is a key factor behind the growth in heat pump sales so far this year, according to the European Heat Pump Association (EHPA), which has long stressed that adoption hinges on electricity pricing.
The EHPA’s latest figures cover twelve countries: Austria, Belgium, Switzerland, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Portugal and Sweden.
The data show that around 1.16 million heat pumps were sold between January and June, up from 1.04 million in the same period of 2025.
This marks a turnaround from 2024, when sales dropped by 47 percent in the first half compared with 2023, after a rush to install units during the 2022 energy crisis waned.
High gas prices boost heat pump interest, but electricity taxes remain a hurdle
Heat pumps extract energy from air, water or the ground and convert it into heating or cooling. Running on electricity, they offer a compelling alternative to gas‑fired boilers, especially amid the Iran war.
Iran’s disruption of shipping through the vital Strait of Hormuz, which carries roughly a fifth of global oil and gas exports, has pushed energy prices to record highs.
“Europe is breaking its dependence on a toxic, costly fuel from unreliable suppliers – gas,” says Paul Kenny, EHPA director general. “The sooner electricity becomes the most affordable option, the faster we’ll achieve clean energy.”
Although heat pumps are three to five times more efficient than boilers, per EHPA, electricity taxes in Europe often exceed those on gas due to historical factors. This makes electrification—through heat pumps or electric vehicles—less financially attractive for many households.
How the EU’s Electrification Action Plan could accelerate heat pump adoption
The EU’s Electrification Action Plan, released in July 2026, seeks to align electricity and gas taxation. It also sets a target of four million annual heat pump installations across Europe by 2030 and aims for electricity to supply nearly half of EU energy demand by 2040, up from about a quarter today. The Commission estimates that broad deployment of electric technologies could save roughly €200 billion in fossil‑fuel imports by 2040.
EHPA highlights the Netherlands and Belgium as examples where electricity taxes have been successfully shifted onto fossil fuels. Denmark has cut electricity taxes specifically for heat pump households, while France, Germany and Italy provide grants and subsidies for installation.
Achieving broader EU‑wide tax reform would require unanimity among all 27 member states—a significant obstacle.
