Heat pump sales plummeted in 2024 – but now they’re on the rise again. Here’s why.
Heat pump sales in European homes rose by 11 per cent in the first half of 2026, following a surge in gas prices linked to the Iran war.
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The energy shock has added urgency to the EU’s shift away from fossil fuels, with the European Commission encouraging governments to lower electricity tax.
This is a likely driver of the growth in heat pump sales so far this year, according to the European Heat Pump Association (EHPA), which has long argued that their uptake depends strongly on the electricity price.
The new data from the EHPA covers 12 European countries: Austria, Belgium, Switzerland, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Portugal and Sweden.
It shows that around 1.16 million heat pumps were sold between January and June – up from 1.04 million in the first half of 2025.
It’s a major shift from 2024, when sales fell by 47 per cent in the first half of the year compared with 2023, after a rush to install them during the 2022 energy crisis slowed.
High gas prices driving heat pump uptake – but electricity taxes remain an obstacle
Heat pumps capture energy from air, water or the ground and turn it into heat or cold air. They run on electricity, making them an appealing alternative to gas-fired boilers, especially in the context of the Iran war.
Iran’s disruption of shipping through the vital Strait of Hormuz, which carries around a fifth of the world’s oil and gas exports, has sent energy prices soaring to record highs.
“Europe is ending its addiction to a toxic, costly drug from dodgy suppliers – gas,” says Paul Kenny, EHPA director general. “The sooner electricity becomes the most affordable solution, the quicker we’ll get clean.”
Although heat pumps are three to five times more energy efficient than boilers, according to EHPA, taxes on electricity are often higher than on gas in Europe, due to complex historical factors. This makes it less financially appealing for households to electrify with things like heat pumps and EVs.
How the EU’s Electrification Action Plan could boost heat pumps
The EU’s Electrification Action Plan, released in July 2026, aims to change that by evening out these taxes. The plan also sets a target of four million annual heat pump installations across Europe by 2030, and aims for electricity to make up almost half of EU energy use by 2040, up from around a quarter today. The Commission estimates that widespread adoption of electric technologies could save roughly €200 billion in fossil fuel imports by 2040.
EHPA points to the Netherlands and Belgium as having successfully shifted taxes on electricity over to fossil fuels. Denmark has separately cut electricity taxes specifically for heat pump households, while countries like France, Germany and Italy offer grants and subsidies for heat pump installation.
Wider EU tax reform would require consensus from all 27 member states, which remains a significant obstacle.
