EU heat pump sales rise as tax focus sharpens
UK – New analysis from the European Heat Pump Association (EHPA) links a 10% rise in EU heat pump sales to recent efforts to reduce electricity costs, underscoring the importance of tax reform for the clean heat transition. The findings, published in a March 2026 briefing, come amid mounting political pressure in Brussels to rebalance energy taxation away from electricity and towards fossil fuels.
EHPA’s latest publication argues that cutting electricity taxes has been pivotal in making heat pumps more competitive against gas boilers in several member states. The association’s earlier figures showed average sales growth of 10.3% across 16 European countries in 2025, following two difficult years for the sector. That performance now appears closely tied to national measures that have narrowed the running-cost gap between electric and gas heating.
The policy direction is being reinforced at EU level. In March, the European Commission advised member states to reduce electricity taxation to support switching to clean heating, while Commission President Ursula von der Leyen publicly committed to pursuing lower electricity taxes after a European Council meeting on energy prices. EHPA has consistently argued that such structural changes to energy pricing are more effective for driving heat pump uptake than short-term subsidies alone.
Milagros García Salciarini,
If people are worried they will pay more, they won’t switch to a heat pump. As our report shows, they see changing national support schemes and high electricity taxes, and hesitate.
Policy Officer at the European Heat Pump Association
For the UK market, the message is clear: stable, long-term price signals on electricity are starting to translate into tangible demand. As the EU steps up guidance on taxation and member states refine their own fiscal regimes, heat pump sales data are becoming a key barometer of whether policy is biting. The UK’s domestic approach to levies and carbon pricing on electricity versus gas will increasingly be judged against these emerging European benchmarks.
Key points
- EHPA links a 10% rise in EU heat pump sales to lower electricity costs and tax shifts.
- EU institutions are urging member states to cut electricity taxation relative to gas.
- Recent sales recovery follows two weak years, highlighting sensitivity to policy signals.
- EHPA argues structural energy price reform is more effective than short-term subsidies.
- European developments provide a reference point for UK debates on electricity and gas levies.
