Last month, the European Commission released its ‘Industrial Accelerator Act’, which aims to boost clean tech manufacturing in Europe, including of heat pumps.

The proposed Act says hydronic heat pumps must originate in the EU three years after it enters into force, and the European Heat Pump Association’s (EHPA) new data shows the sector already has a strong European manufacturing base.

EHPA asked its members where the heat pumps they sold in Europe were manufactured; the captured results represent around 70% of the air to water market. For monoblocs, 80-90% were assembled in Europe against 5-10% in China*. 90-100% of indoor units were assembled in Europe, 5-10% in China. Assembly of these types of units have the highest value-add in the heat pump supply chain. For the outdoor units of the heat pump, around 40-50% were assembled in Europe, under 5% in China, 40-50% elsewhere.

Paul Kenny, director general of the European Heat Pump Association said:
“Want products ‘made in Europe’? The heat pump sector’s already delivering. But its 300 factories could produce over three times more heat pumps if the demand was there.

“Governments must be encouraged to remove taxes from the electricity bill and put in place clear support for heat pump consumers – measures we know are crucial for spurring demand,” said Kenny.

Europe has capacity to produce 8 million heat pumps a year, up from 2.5 million today. This would massively reduce our exposure to volatile gas price spikes which are set to drive inflation upwards. The fact that heat pumps are part of the Industrial Accelerator Act confirms they are seen as a sector key to European energy independence and strategic autonomy.

The most recent sales figures, released by EHPA on 2 March, show that across 16 countries heat pump sales grew in 2025 by 11%. This can clearly be linked to governments starting to tackle electricity tax levels and put in place longer term support.

The Industrial Accelerator Act will be discussed and potentially amended by EU Member States and the EU Parliament before being finalised.

Contact:

Sarah Azau,
Communications & events director
sarah.azau@ehpa.org

The post Europe’s heat pumps are mainly ‘made in Europe’ appeared first on European Heat Pump Association.

The post Heat pump sales show EU focus on electricity tax is right call appeared first on European Heat Pump Association.

The post Strengthening certification through collaboration appeared first on European Heat Pump Association.

EU Member States should reduce electricity taxation to make it more affordable for citizens compared to gas, according to the European Commission’s Citizens’ Energy Package, published today.  

Jozefien Vanbecelaere, Policy Director at the European Heat Pump Association (EHPA) commented: 

“The electricity-to gas price imbalance has long needed fixing, and it is great that the European Commission now says so. Taxing electricity many times more than gas makes little sense when Europe wants energy that is reliable, clean, home-grown and competitive. It is now crucial that Member States act to make electricity the obvious and affordable choice for households.” 

EHPA has long called for the electricity price to be no more than twice that of gas to make heat pumps competitive.  

We recently published a report that showed countries which tax electricity more heavily than gas see slower adoption of heat pumps and remain more dependent on fossil fuels.

The post EU advises electricity tax cuts for clean heat shift appeared first on European Heat Pump Association.

The post Heat pump sales testify to government action appeared first on European Heat Pump Association.

The post Ten women powering the heating and cooling transition speak up appeared first on European Heat Pump Association.

It aims to modernise Europe’s electricity grids, and connect them up better, recognising that this is crucial to integrate more renewable electricity and lower energy prices – both key to speeding up heat pump rollout.

In turn, heat pumps can help make the entire power system more efficient!

They provide flexibility, smooth peak demand, and reduce the need for expensive new infrastructure. This helps bring down system-wide power costs and strengthens Europe’s long-term energy security.

This is an important signal from the European Commission. Rapid implementation across Member States will be key to unlocking the benefits of clean, smart, and flexible heating.

The post EU Grids Package: an important signal; fast implementation key appeared first on European Heat Pump Association.

The post Analysis: high taxes on electricity are slowing heat pump uptake appeared first on European Heat Pump Association.

Paul Kenny, Director General of the European Heat Pump Association commented:
“While this comes as no surprise, it is essential that the elements the heat pump sector need are included in the forthcoming EU Heating and Cooling Strategy and Electrification Action Plan.

These are part of the European Commission’s  energy security framework, and there is nothing more secure than a heat pump powered by locally produced clean energy.

Critically, these plans must ensure switching to heat pumps is affordable, both upfront and during operation, by addressing subsidies and energy taxation.

Investments and planning can be locked in via clear, consistent and supportive long-term policies – for example targets and enforced implementation.

What’s more, heat pumps can bring huge savings to the power grid through their flexibility, but this must be prioritised and consumers incentivised. Industrial heat pumps and waste heat recovery should become the default option for factories using process heat of below 200°C.

If the European Commission supports the faster rollout of heat pumps in this way in its upcoming plans, it will boost the benefits for Europe – greater energy security, clean tech leadership, local jobs, decarbonisation of buildings and industry – as was the intention of the cancelled EU Heat Pump Action Plan.”

EHPA is part of the European Commission’s Heat Pump Accelerator Platform, which aims to bring the heat pump community together to drive uptake. The Platform held its most recent meeting last week.

The post EU Commission officially scraps Heat Pump Action Plan appeared first on European Heat Pump Association.

EHPA applauds this focus at the highest political level: heating represents 50% of EU’s energy use and has a huge impact on the competitiveness, health, wealth and security of the European Union. 

Paul Kenny, EHPA director general said:
“EU leaders have accepted that the lifeblood of our energy system must be electricity. At the heart of energy affordability, security and climate transition is electrification.”

This electricity needs to be affordable and clean to meet the European Council’s other aims on industrial transformation, modernisation and decarbonisation.

“Want to boost investment, production, and Europe’s leadership in the clean heat economy? The best thing governments can do is shift taxes off the electricity bill so it is no more than twice the price of gas. This will strengthen the take-up of both residential heat pumps and the industrial-size ones which can decarbonise up to 39% of process heat. The vast majority of all heat pumps are manufactured in Europe”, said Kenny.

The European Heat Pump Association (EHPA) calls for strong support to accelerate the roll-out of industrial heat pumps to ensure Europe’s industry is competitive, resilient and achieves climate-neutrality.

EHPA also strongly supports the European Council’s call to advance the Single Market Strategy. This is critical for the heat transition, as it enables the creation of a unified market for heat pumps across Europe.

It is also crucial to have one single certification system, such as the Heat Pump Keymark, to streamline access to the market and ensure eligibility for support schemes. This approach will accelerate deployment, reduce administrative burdens, and help deliver on Europe’s climate and energy goals.

Concerning the Council’s call on boosting demand for products ‘made in Europe’, EHPA supports a pragmatic approach that strengthens the competitiveness and resilience of the European heat pump industry while recognising the importance of global supply chains.

On regulatory simplification, EHPA believes that any changes to regulations should take place only when necessary, support the energy transition. To allow companies time and ability to adapt they should be grouped and planned, ensure long phase-in as well as being predictable and setting clear deadlines to allow planning for product cycles.

The post Heating topics in focus at EU summit appeared first on European Heat Pump Association.