Government Action Boosts Heat Pump Sales Across Europe 

Market & Policy

30 Mar 2026

The latest data released by the European Heat Pump Association (EHPA) show that heat pump sales across Europe grew substantially in 2025, with an average increase of 10.3% across 16 countries and total residential sales reaching 2.62 million units.

Heat pump sales testify to government action” press release published on the association’s website explains that a key driver behind this rebound is stabilized government subsidy schemes and targeted costreduction measures, such as lower electricity taxes, which make heat pumps more competitive with fossil‑fuel boilers.

Two success stories include the “UK’s continued policy support – via the Boiler Upgrade Scheme and new Warm Homes plan – has helped bring up heat pump sales by 27%, to 125,000 units.“

Moreover, “in Germany last year a record was broken as heat pumps accounted for almost half of all heat generators sold. This is due to increasing consumer confidence in the technology after the previous politicisation of heating, and the role of heat pumps in energy security” says the press release.

However, some markets are still struggling such as “in Poland where there is much disinformation about heat pumps, and in France where government budgets and heat pump support were in flux, sales fell in 2025. “

With rising oil prices the hope is that this positive trend will continue and spread across other parts of the world.

In a later press release the association stated that last year’s “heat pump sales show EU focus on electricity tax is right call”. In some countries tax on electricity is several times higher than that on gas, making even highly energy efficient heat pumps more expensive to run, which could have a major impact on heat pump sales. EHPA are referring to European leaders’ summit the week before, where the European Commission president von der Leyen subsequently singled out electricity tax as a key issue to address. 

EHPA presented a mapping of how different factors impacted heat pump sales in some of the European countries. This mapping showed that favourable policy frameworks, subsidies, support schemes as well as energy prices had positive impact on some of the markets while construction and renovation market slowdown had a negative impact on others. Moreover, one of the important factors behind the growth on some of the mature markets like Sweden and Finland was a large installed base and a replacement demand. 

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