Heat Pump Sales Soar Across Europe After Electricity Tax Cuts 2026

Heat pump sales across Europe have surged 11% in the first half of 2026, driven by electricity tax cuts and soaring fossil fuel prices. According to the European Heat Pump Association (EHPA), homeowners purchased 1.16 million units across 12 European countries, up from 1.05 million in the same period last year. The surge follows a dramatic spike in oil and gas prices caused by geopolitical tensions, prompting governments to make electricity cheaper and accelerate the shift to renewable heating.

Why Heat Pump Sales Are Booming in Europe

The primary catalyst behind this growth is the widening price gap between electricity and fossil fuels. Iran's de facto closure of the Strait of Hormuz disrupted global oil shipments, sending crude oil prices as high as $126 per barrel in late April. In response, the European Commission urged member states to lower electricity taxes and speed up the transition away from oil and gas. Many countries heeded the call, reducing the tax burden on electricity and making heat pumps more cost-effective to run.

Heat pumps work by transferring heat energy rather than burning fuel, making them highly efficient for both heating and cooling. As electricity becomes cheaper relative to gas and oil, the economic case for heat pumps strengthens. The EHPA has long argued that the popularity of these systems depends heavily on the price of electricity, and the latest data confirms that theory.

Electricity Tax Cuts: A Game Changer for Homeowners

In its electrification action plan, the European Commission stated that taxes on electricity should be no higher than those on gas. Brussels also aims to reform network charges that consumers pay on their utility bills, further reducing the cost of running electric heating systems. These policy changes have made heat pumps an attractive option for homeowners looking to cut energy bills and carbon footprints.

Several countries have already implemented tax cuts. For example, Germany reduced its electricity tax for heat pump users, while France introduced rebates for households installing renewable heating systems. These measures, combined with high fossil fuel prices, have created a perfect storm for heat pump adoption.

Heat Pump Sales by Country: A Comparative Snapshot

The table below shows estimated heat pump sales in key European markets for the first half of 2026, based on EHPA data and national reports.

Key Takeaways for Homeowners and Policymakers

• Electricity tax cuts directly boost heat pump adoption by lowering running costs.
• High oil and gas prices make heat pumps more financially attractive.
• Government incentives and rebates can accelerate the transition to renewable heating.
• Heat pumps provide both heating and cooling, offering year-round comfort.
• EU policy aims to equalize electricity and gas taxes, further driving demand.

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