Sales of residential heat pumps in Europe increased by 11% in the first six months of the year, as the conflict in Iran led to a strong rise in oil and gas prices, while some countries reduced electricity taxes.
Homeowners in 12 European countries purchased 1.16 million heat pumps, compared to 1.05 million in the first half of 2025, according to the European Heat Pump Association (EHPA). Romania is not among them, as reported by The Guardian.
The closure by Iran of the Strait of Hormuz, an important maritime route, severely disrupted oil and gas transport and drove the price of crude oil up to $126 per barrel by the end of April.
Shortly after the US and Israel's attacks on Iran, which began on February 28 and triggered the war, the European Commission released plans to encourage EU governments to reduce electricity taxes and accelerate the transition from fossil fuels such as oil and gas to renewable energy sources.
The increase in energy prices and changes in electricity taxes have fueled heat pump sales this year, EHPA stated, an organization that has long argued that the popularity of these systems largely depends on current prices.
Unlike systems that generate heat by burning fuels, heat pumps transfer thermal energy from one place to another and can be used for both heating and cooling homes.
In its electrification action plan, the European Commission stated that electricity taxation should not be higher than that applied to gas. Brussels also intends to modify the network tariffs paid by consumers through utility bills to encourage flexible solutions such as heat pumps.
Heat pump sales have increased in European countries where electricity taxes have been reduced, EHPA noted. In Germany, a subsidy program has made heat pumps the primary heating technology installed, the organization added.
In Romania, the price of electricity is five times higher than that of gas
The 12 countries included in the data are Austria, Belgium, Switzerland, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Portugal, and Sweden.
"Europe is abandoning its dependence on a toxic and costly drug supplied by dubious suppliers: gas. The faster electricity becomes the most accessible solution, the sooner we will reach clean energy.
The solution? Reducing electricity taxes and shifting them to fossil fuels. The European Commission has clearly conveyed this message, but now all EU governments must implement these measures, following the example of the Netherlands and Belgium," said Paul Kenny, CEO of EHPA.
The industry organization found that electricity taxes are often higher than those applied to gas, significantly increasing costs. In the UK, electricity costs over four times more than gas, a situation similar to that in Belgium. The only country where the difference is even greater is Romania, where the price of electricity is five times higher than that of gas.
EHPA stated that countries taxing electricity more than gas experience slower adoption of heat pumps and are more dependent on fossil fuels. The organization cited Belgium as an example, where the use of heat pumps remains low, despite the government announcing tax changes for 2026 that will reduce electricity costs by 3% and increase gas costs by 3%.
Separately, a two-year study by the Centre for Net Zero, based in London, found that installing solar panels and a battery in a UK home generates average savings of £681 per year.
Annual family bills decreased by almost two-thirds (62%) after receiving free solar panels and a battery, according to smart meter data used to calculate electricity bills.
More new solar energy systems were installed in the UK in the first half of this year than in any other six-month period since 2011, according to government data published in July.