Heat pump sales across Europe rose sharply in the first half of 2026 as higher gas prices renewed interest in electric heating. The rebound adds momentum to the European Union’s wider electrification strategy, although taxes on electricity and the cost of installation remain important barriers for households.
New figures from the European Heat Pump Association (EHPA) show that about 1.16 million heat pumps were sold across 12 European countries between January and June 2026. That compares with approximately 1.04 million during the same period in 2025, representing an increase of 11 per cent.
Heat pump sales recover after a difficult 2024
The latest data mark a significant recovery for the sector. Sales fell by 47 per cent in the first half of 2024 compared with the same period in 2023, after the surge in installations triggered by the 2022 energy crisis began to fade.
Demand has since been influenced by the relative cost of gas and electricity. Heat pumps use electricity to extract energy from the air, ground or water, providing heating and, in some systems, cooling. Unlike conventional boilers, they do not burn fossil fuels inside the home.
The EHPA data cover Austria, Belgium, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Portugal, Sweden and Switzerland. The figures therefore provide a regional snapshot rather than a complete total for every European country.
Why gas prices are affecting demand
Rising gas prices have strengthened the financial case for alternatives to gas-fired boilers. The source report links the latest energy shock to disruption affecting shipping through the Strait of Hormuz during the Iran war, a development that pushed energy costs higher.
For households considering a new heating system, the calculation depends on several factors:
- the purchase and installation cost of the heat pump;
- local gas and electricity prices;
- energy taxation and network charges;
- available grants or subsidies; and
- the energy efficiency of the building.
The EHPA says heat pumps can be three to five times more energy efficient than boilers, although actual performance varies according to the system, property and operating conditions.
Electricity taxes remain a barrier to electrification
Despite their efficiency, heat pumps can be less attractive when electricity is taxed more heavily than gas. The EHPA argues that this imbalance makes it harder for consumers to switch to electric heating and can also affect demand for other technologies, including electric vehicles.
The issue is partly a result of long-standing national tax structures. Electricity bills can include taxes, levies and network costs that differ substantially between countries, making comparisons difficult for households and businesses.
Several governments have already taken steps to narrow the gap. The Netherlands and Belgium have shifted some taxation away from electricity and towards fossil fuels, according to the EHPA. Denmark has introduced a specific electricity tax reduction for households using heat pumps, while France, Germany and Italy provide grants or other financial support for installations.
What the EU Electrification Action Plan proposes
The European Commission’s Electrification Action Plan, released in July 2026, seeks to make electricity a more competitive option for heating, transport and industry. A central element is the proposed alignment of energy taxation so that fossil-fuel use does not receive an unintended advantage.
The plan includes a target of four million heat pump installations each year across Europe by 2030. It also aims for electricity to account for almost half of EU energy use by 2040, compared with roughly one quarter currently.
The Commission estimates that wider use of electric technologies could reduce fossil-fuel imports by about €200 billion by 2040. That would support the EU’s climate goals while also reducing exposure to volatile international energy markets.
Why implementation may be difficult
Changing energy taxation at EU level will not be straightforward. Tax decisions generally require agreement among all 27 EU member states, meaning governments must reach consensus on a policy area closely linked to national budgets and household costs.
Member states also face different starting points. Some have extensive gas networks and older housing stock, while others already rely more heavily on electricity, district heating or renewable energy. A common approach would therefore need to account for national differences in infrastructure, income and climate.
What the rebound means for households
Higher heat pump sales suggest that consumers are responding to energy-price signals, but sales growth alone does not mean the transition is complete. Installation capacity, qualified workers, building insulation and access to finance will all influence whether the technology expands further.
For homeowners, a heat pump may offer lower running costs over time, particularly in an efficient property and where electricity prices are favourable. However, the initial investment can be substantial, and older buildings may require insulation or radiator upgrades before the system performs effectively.
In Ireland, the implications will depend on domestic grants, electricity and gas prices, housing efficiency and the pace of national implementation of EU energy policy. Ireland is not included in the 12-country sales dataset cited by the EHPA, so the figures should not be treated as a direct measure of the Irish market.
What happens next?
The next stage will be political and national rather than an immediate change to household bills. EU governments would need to agree any tax reforms requiring unanimous approval, while individual countries will continue to decide how grants, consumer incentives and energy charges are structured within the applicable EU framework.
The 2026 sales rebound gives policymakers evidence that demand can recover when gas becomes more expensive. Whether that momentum continues will depend on the balance between electricity prices, support schemes, installation costs and the wider rollout of renewable power.
Heat pump sales are rising again, but the longer-term outcome will depend on whether Europe can make electricity consistently affordable as well as cleaner. The EU’s electrification strategy sets ambitious targets; national tax and investment decisions will determine how quickly households can act on them.
