Sales of residential heat pumps in Europe increased significantly in the first half of 2026, driven by rising energy prices and changes in electricity taxation, according to data from the European Heat Pump Association (EHPA). Across 12 European countries, homeowners purchased 1.16 million heat pumps between January and June, marking an 11% rise from 1.05 million in the same period in 2025.

The surge in sales follows a sharp increase in oil and gas prices triggered by geopolitical tensions in the Middle East, including the US and Israeli attacks on Iran in late February. In response, the European Commission introduced plans aimed at accelerating the transition from fossil fuels to renewable energy by encouraging member states to reduce electricity taxes.

Heat pumps, which transfer heat energy to warm or cool buildings rather than relying on combustion, have become an increasingly attractive alternative in markets where electricity has become more competitively priced relative to gas. The commission’s electrification action plan recommends that electricity taxes should be no higher than those levied on gas and calls for reforms to network charges that would reward consumers who adopt flexible heating solutions such as heat pumps.

The EHPA highlighted that the most notable increases in heat pump adoption occurred in countries that have lowered electricity taxes. Germany, in particular, has seen heat pumps emerge as the leading heating technology, supported by a robust subsidy scheme. The data covered Austria, Belgium, Switzerland, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Portugal, and Sweden.

Paul Kenny, EHPA director general, emphasized the urgency of shifting tax burdens from electricity to fossil fuels. “Europe is ending its addiction to a toxic, costly drug from dodgy suppliers: gas,” he said. Kenny urged all EU governments to implement the commission’s tax recommendations, following the examples set by the Netherlands and Belgium.

Despite these developments, EHPA noted that in some countries electricity remains significantly more expensive than gas. For instance, in the UK, electricity prices are more than four times higher than gas prices, a disparity similar to Belgium. Romania has even greater discrepancies, with electricity costs nearly five times those of gas. The association warned that such pricing imbalances hinder heat pump adoption and perpetuate reliance on fossil fuels.

Belgium was cited as a case where heat pump uptake remains relatively low, although planned tax changes for 2026 aim to reduce electricity costs by about 3% and raise gas prices by a corresponding amount. The EHPA’s findings suggest that aligning taxes to favor electricity over fossil fuels could be a key driver in boosting the use of heat pumps and advancing Europe’s broader clean energy goals.