European Heat Pump Sales Up 11% as Fuel Costs and Tax Signals Converge

Europe’s heat pump market has swung back into growth, propelled by rising fossil fuel prices and European Commission proposals that would lower electricity taxes across the continent. Sales figures for the first half of the year show more than 1.16 million residential units sold across twelve European countries — an 11 percent gain on the same period in 2025.

The twelve nations in the survey account for roughly 80 percent of the total European market. According to EHPA, the trade association that tracks the sector, two forces acted simultaneously: a sharp climb in oil and gas prices, and Brussels-level guidance encouraging member governments to cut electricity levies and introduce more favourable grid tariffs.

Despite the positive momentum, output still falls well short of the continent’s strategic target. Last year, 2.88 million heat pumps were sold across 21 European countries. The Commission’s roadmap calls for 4 million annual installations by 2030, meaning current volumes sit around 40 percent below that indicative benchmark.

Industry representatives argue that closing the gap will depend on governments acting on the recommended fiscal changes — particularly reducing the tax premium on electricity that continues to make gas boilers cheaper to run than heat pumps in many markets.

Source: PV Magazine