European Heat Pump Sales Rise Amid Energy Crisis
European residential heat pump sales reached 1.16 million units in early 2026 as energy price spikes and tax cuts accelerate the shift from gas.
Residential heat pump sales in Europe rose to 1.16 million units in the first half of 2026, an increase from 1.05 million units during the same period in 2025. This growth follows a surge in oil and gas prices triggered by the war in Iran and the closure of the strait of Hormuz, which pushed crude oil prices to $126 a barrel in late April.
In response to US-Israeli attacks on Iran on February 28, the European Commission launched an electrification action plan. The plan urges EU governments to lower electricity taxes so they are no higher than taxes on gas, aiming to accelerate the transition to renewable energy.
The European Heat Pump Association reports that sales growth is most prominent in countries that reduced electricity taxes. Germany's subsidy scheme has already established heat pumps as the most installed heating technology in that country. While the Netherlands and Belgium have enacted or announced tax shifts to lower electricity costs, the association warns that nations maintaining higher taxes on electricity than on gas are seeing slower adoption rates.
