Heat pump sales climbed across Europe in the first six months of the year, lifted by lower electricity taxes and rising energy prices following the Iran conflict, data shows.
According to the European Heat Pump Association (EHPA), homeowners bought 1.16 million heat pumps across 12 European countries in the first half of the year, up from 1.05 million in the first half of 2025. The increase coincides with efforts by some governments to reduce electricity taxes, making electric heating more financially attractive relative to gas-based alternatives.
Key Facts
- 1.16 million heat pumps sold across 12 European countries in the first half of the year.
- Sales rose from 1.05 million in the first half of 2025.
- Data is reported by the European Heat Pump Association (EHPA).
- Some countries cut electricity taxes, contributing to the sales jump.
- The Iran war pushed up oil and gas prices, spurring demand.
What drives the surge?
Two main factors appear to have supported the rise in heat pump sales. First, several governments reduced electricity taxes, lowering the operating cost of electric heating systems. Second, the outbreak of the Iran conflict sent oil and gas prices higher, prompting households to seek alternatives to fossil fuel-based heating. Together, these pressures shifted demand toward electric heat pumps, which are increasingly viewed as a cleaner and, in some cases, more economical option.
The European Union is also reportedly preparing to push member states to align electricity tax rates with the existing duty on gas, a move that could further accelerate the transition. While the full policy impact remains uncertain, analysts say current incentives and energy market trends are reshaping consumer behavior across the region.
Who is affected?
Households and installers across the 12 countries included in the EHPA data are seeing stronger demand for heat pump technology. For consumers, the combination of tax cuts and high fossil fuel prices improves the payback period on heat pump investments. Builders, electricians, and HVAC firms may also benefit from sustained growth in the sector.
However, the benefits are not evenly distributed. Consumers in countries without tax cuts or subsidies may face higher upfront costs, and supply chain bottlenecks could limit access in some markets. Regional disparities in policy support suggest that the sales trend may vary significantly by location.
How did we get here?
The jump in heat pump sales follows a period of volatile energy markets triggered by the Iran war. Soaring oil and gas prices raised heating costs for millions of European households, increasing interest in alternatives. At the same time, select governments moved to reduce electricity taxes, making electric heating systems more competitive on operating costs.
These twin trends reinforced each other, creating conditions favorable to heat pump adoption. With the EU now signaling broader tax alignment plans, market momentum could continue, though implementation timelines remain unclear.
Verified by the source:
- Homeowners bought 1.16 million heat pumps in 12 European countries in the first half of the year.
- Sales increased from 1.05 million in the first half of 2025.
- Data originates from the European Heat Pump Association (EHPA).
- Some countries cut electricity taxes to encourage electric heating.
- The Iran war contributed to higher oil and gas prices affecting heating costs.
- The EU plans to urge member states to cut electricity tax rates to below the gas duty.
Still unconfirmed:
- Specific list of the 12 European countries included in the EHPA data.
- Exact timing and scope of national electricity tax cuts.
- Concrete details on how the EU will enforce or incentivize gas duty alignment.
- Full impact of the Iran war on regional energy pricing beyond oil and gas.
- Whether the sales trend will persist beyond the first half of the year.
Why it matters
Heat pump adoption plays a key role in Europe’s efforts to reduce reliance on fossil fuels and meet climate targets. Rising sales amid tax reforms and energy shocks show how policy and market forces can combine to accelerate the transition to cleaner heating technologies.
What to watch
Further clarity on EU directives regarding electricity taxation could shape future demand, and upcoming energy price movements may influence whether heat pump sales maintain their upward trajectory.