European heat pump sales surge as electricity taxes fall and energy prices climb

According to the European Heat Pump Association, sales of residential heat pumps reached 1.16 million units in the first half of the year across Austria, Belgium, Switzerland, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Portugal and Sweden, up from 1.05 million in the same period last year. The surge coincides with soaring oil and gas prices after the Iran war disrupted shipments through the Strait of Hormuz, pushing crude to $126 per barrel in late April.

The European Commission’s electrification action plan encouraged EU governments to lower electricity taxes and align them with gas taxes, prompting several states to reduce electricity levies. The association noted that lower electricity taxes boost heat-pump uptake, while higher electricity-to-gas tax ratios, as seen in the UK and Belgium, dampen demand. Germany’s subsidy scheme has propelled heat pumps to become the top heating technology installed. Paul Kenny, director general of the EHPA, called the trend a move away from costly gas toward cheaper electricity.