‘Europe is ending its addiction to a toxic, costly drug’: Heat pump sales soar as electricity taxes fall

Heat pump sales in European homes have surged by 11% in the first half of 2026, driven by a spike in gas prices following the Iran war. The European Commission is encouraging governments to lower electricity taxes to hasten the transition away from fossil fuels. According to the European Heat Pump Association (EHPA), this may be a key factor in the growth of heat pump sales this year.

The EHPA data, which covers 12 European countries, shows that around 1.16 million heat pumps were sold from January to June, up from 1.04 million in the same period of 2025. This represents a significant shift from 2024, when sales fell by 47% in the first half of the year compared to 2023. High gas prices are driving the uptake of heat pumps, but electricity taxes remain an obstacle.

Heat pumps are three to five times more energy efficient than boilers, but in many European countries, taxes on electricity are higher than on gas due to historical factors. The EU's Electrification Action Plan aims to address this by evening out taxes and setting a target of four million annual heat pump installations across Europe by 2030.