European Heat Pump Sales Jump 11% as Energy Costs Reshape Market
Homeowners across 12 European countries bought 1.16 million heat pumps in H1, driven by soaring oil and gas prices and lower electricity taxes.
Sales of residential heat pumps surged 11% across Europe in the first half of this year, as rising oil and gas prices tied to the Iran war and targeted tax reductions on electricity pushed more homeowners toward the technology, according to new industry data.
Buyers in 12 European countries purchased 1.16 million units during the first six months of the year, up from 1.05 million in the same period of 2025, the European Heat Pump Association reported. The figures suggest a meaningful reversal after a prolonged slowdown that had weighed on the sector.
Read more Cleveland-Cliffs Shares Drop Amid Stelco Plant Idle Report →
Analysts point to two converging forces behind the rebound: the spike in fossil fuel costs triggered by the Iran conflict, which made gas heating more expensive relative to electric alternatives, and policy moves by several governments to reduce the tax burden on electricity — historically higher than duties levied on gas, a disparity critics have long argued distorts consumer incentives.
The European Union is now pressing member states to push electricity tax rates below those applied to gas, a structural shift that could sustain demand momentum beyond the immediate energy-price shock. If implemented broadly, the measure would close a long-standing regulatory gap that has disadvantaged electric heating systems in household cost comparisons.
The data arrives as European policymakers continue to seek durable pathways to reduce dependence on fossil fuels in the residential heating sector, one of the continent's most carbon-intensive areas. Whether the current sales pace holds may depend heavily on how long elevated gas prices persist and how quickly governments act on electricity tax reform. Continue reading at Business | The Guardian.
