Policy Archives - European Heat Pump Association

Europe’s heat pumps are mainly ‘made in Europe’

Sarah Azau — Thu, 09 Apr 2026 10:00:00 +0000

The vast majority of air to water heat pumps installed in Europe are assembled in Europe, new data from the European Heat Pump Association representing over two-thirds of the market reveals. This compares to only around 10% which are assembled in China.

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

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Energy crisis: five ways to boost heat pumps

Sarah Azau — Thu, 02 Apr 2026 16:57:29 +0000

The crisis in the Middle East is sending gas and oil energy prices skyrocketing, and this is already leading to higher demand for heat pumps. The heat pump sector can scale up, provided stable growth is ensured by structural and long-term measures. There are already many trained installers as well as other workers in adjacent sectors who could shift to heat pumps.

Likewise, Europe’s heat pump manufacturing capacity – which was hugely extended following the surge in demand in 2022 – is significantly underused. Factories could produce several times current market volumes. The key constraint is the conditions needed to unlock this extra capacity.

When demand for heat pumps dropped post-2022, it left companies with excess inventory. This means manufacturers are now reluctant to scale up production without strong and credible signals that demand will materialise in the long term, such as regulatory clarity and tax shifts from electricity.

The five measures in this plan can help to rapidly scale up heat pumps.

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Heat pump sales show EU focus on electricity tax is right call

Sarah Azau — Thu, 26 Mar 2026 10:49:23 +0000

Cost reduction was crucial to the recent 10% jump in heat pump sales, new analysis from the European Heat Pump Association (EHPA) finds.

In 12 out of 16 European countries*, sales went up in 2025. This was mainly due to governments helping consumers with upfront purchase costs by providing stable incentive schemes, and with running costs by reducing tax on electricity.

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. This has a direct impact on sales.

At last week’s European leaders’ summit they called for action on energy costs; European Commission president von der Leyen subsequently singled out electricity tax as a key issue to address.

Milagros García Salciarini, Policy Officer at the European Heat Pump Association said:

“If people are worried they will pay more, they won’t switch to a heat pump.

As our report shows, they see changing national support schemes and high electricity taxes, and hesitate.

This delays Europe’s move to clean heating and cooling powered by homegrown renewable energy.

The European Commission wants to tackle electricity taxes; doing so would open the way for greater heat pump uptake, boosting Europe’s energy security and competitiveness.”

Around 2.62 million heat pumps were sold last year in those 16 countries, up from 2.38 million in 2024 and bringing the total number of heat pumps installed in Europe to around 28 million.

EHPA spoke to national heat pump experts and analysed press released from the different countries to summarise the reasons for last year’s sales.

*The countries are: Austria, Belgium, Czech Republic, Switzerland, Denmark, Spain, Finland, France, Italy, Netherlands, Norway, Poland, Portugal, Sweden, Switzerland, UK.

Sales grew in all except Austria, France, Norway and Poland.

Read the report: ‘Pump it up: why heat pump sales rose in 2025’

Contact:

Sarah Azau
sarah.azau@ehpa.org

www.ehpa.org

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Von der Leyen vows to lower electricity taxes after European Council

Sarah Azau — Mon, 23 Mar 2026 17:39:10 +0000

European leaders called for both immediate and structural action on energy prices on 19 March. The Commission is asked to present a toolbox of targeted temporary measures to address fossil fuel price spikes, as well as urgent measures covering all four components of electricity prices: generation costs; network charges; taxes and levies; carbon pricing.

Member States and the Commission are also called upon to accelerate the Energy Union 2030 agenda – which refers to ensuring secure, sustainable, competitive, and affordable energy for all Europeans while advancing climate goals – to enable increased and affordable electrification. Co-legislators are urged to agree on an ambitious grids package in 2026. The European Council will review progress in June.

At the post-Council press conference, Commission President von der Leyen outlined concrete actions across the four electricity price components. Particularly notable for EHPA members – although how exactly this would be done is not yet clear – is the Commission’s commitment to propose lower mandatory tax rates on electricity, ensuring it is taxed less than fossil fuels.

EHPA has long urged action on electricity taxes: high electricity taxes relative to gas remain one of the key barriers to heat pump uptake across Europe, and rebalancing at EU level would be a significant step forward. Medium-term measures are likely to form part of the July Emissions Trading System (ETS) review. Central to this is the proposed ETS Investment Booster – a €30 billion fund financed through 400 million ETS allowances, targeting decarbonisation projects with guaranteed access for lower-income Member States.

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Industrial heat pump cuts emissions by up to 59% in dairy production

ehpa_editor_daniela — Mon, 23 Mar 2026 13:20:24 +0000

Cutting emissions by nearly 60% is no longer a future ambition for the food and drink industry. It is already happening.

Industrial heat pumps are delivering tangible results today, with real-world installations achieving emissions reductions of up to 59% in energy-intensive processes such as dairy spray drying for the Arla brand.

This was the key takeaway from the first webinar in the Heat BIG series on large heat pumps, organised by EHPA under the EU-funded EXQUISHEAT project.

The session brought together industry representatives, technology providers and experts, including Sabine Höfel of the Food-Processing Initiative, Elsie Haertjens and Audrey Meurisse of Veolia, Isabel Osterroth of GEA, and Uli Jakob and Michael Strobel of Dr Jakob Energy Research GmbH & Co. KG.

The message was clear. Decarbonisation is no longer driven by climate targets alone. It is increasingly shaped by energy security concerns and volatile fossil fuel markets. In this context, electrification is emerging as a central strategy, with industrial heat pumps playing a key role.

By upgrading waste heat and supplying low-carbon process heat, these systems can be integrated across a wide range of food and beverage applications.

During the webinar, Isabel Osterroth (GEA) presented real-world case studies showing how heat pumps can be successfully integrated into industrial processes.

One example focused on spray drying in the dairy sector, where a high-temperature heat pump was used to recover and upgrade waste heat. The installation achieved up to 59% CO₂ emissions reduction, while maintaining stable production and improving overall efficiency.

A second case from the brewing sector showed how waste heat from refrigeration systems can be reused to supply process heat at around 90°C. This approach significantly reduces gas consumption and demonstrates how existing systems can be adapted to support decarbonisation.

Beyond the technical results, several key lessons emerged. These included the importance of a clear decarbonisation strategy, a holistic understanding of energy use across the site, and careful integration into existing processes.

These examples confirm that the challenge is no longer whether the technology works, but how to implement it effectively.

Integrating heat pumps into existing industrial processes requires careful planning, a strong understanding of site-specific conditions, and solutions that fit within tight production timelines. System design, temperature requirements and refrigerant choices all play a critical role.

At the same time, market conditions will be decisive. Electricity pricing, particularly in relation to gas, and carbon pricing mechanisms such as ETS2 will shape investment decisions. Together, they will determine whether heat pumps are financially attractive compared to gas, and how quickly companies make the switch.

What is becoming increasingly clear is that companies need a structured approach. A clear roadmap, combined with a holistic view of energy use across the site, is essential to identify where heat pumps can deliver the greatest value.

This is where the EXQUISHEAT project aims to support industry. By developing implementation guidelines, standardised solutions and fostering collaboration between industry and technology providers, it seeks to reduce complexity and accelerate uptake.

As the Heat BIG webinar series continues, the focus remains on one goal: turning proven technology into practical, scalable solutions for a low-carbon future.

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EHPA position on the Energy Product Omnibus

ehpa_editor_daniela — Fri, 13 Mar 2026 05:55:12 +0000

Improving the rules around energy-efficient products like heat pumps is crucial.

EHPA sees the Energy Product Omnibus initiative as an opportunity to make the existing legislative framework better.

The legislation should reflect market realities and reduce unnecessary administrative burdens on manufacturers.

In this position paper, the European Heat Pump Association (EHPA) aims to further contribute to the European Commission’s Call for Evidence on the Energy Product Omnibus initiative.

It builds on EHPA’s January 2026 feedback by refining earlier recommendations and introducing additional proposals for consideration.

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EU advises electricity tax cuts for clean heat shift

ehpa_editor_daniela — Tue, 10 Mar 2026 17:25:07 +0000

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.

By contrast, countries that keep electricity taxes lower and put a stronger price signal on fossil fuels achieve significantly higher heat pump uptake.

The European Commission says Member States should remove non-energy-related costs from electricity bills and make full use of the existing flexibilities in EU legislation to lower VAT and excise duty rates.

It says this could reduce household electricity bills by up to 14%, or around €200 per year on average according to the European Commission.

EHPA is also pleased to see the Commission’s focus on flexible electricity use and innovative financing models, including social leasing and energy-as-a-service, which can help households overcome upfront costs and access efficient heating.

Combined with flexible tariffs and smart energy services, heat pumps can significantly lower energy bills while supporting a more efficient electricity system.

With nearly 10% of Europeans unable to adequately heat their homes in 2024, accelerating access to efficient electric heating will also be key to tackling energy poverty.

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Heat pump sales testify to government action

Sarah Azau — Mon, 02 Mar 2026 09:20:10 +0000

Updated on 11 March 2026

Heat pump sales in 2025 grew by 10.3% across 16 European countries* on average, preliminary data from the European Heat Pump Association shows.

Around 2.62 million residential heat pumps were sold, up from 2.38 million in those countries in 2024 and bringing the total installed in Europe to around 28 million.

> The full data set is available here for EHPA members only! <

Twelve of the 16 countries installed more heat pumps in 2025 than in 2024. This is largely due to those governments having stabilised subsidy schemes and taken action on costs, for example by reducing tax on power bills. This makes heat pumps – which use a small amount of electricity – highly competitive with fossil fuel boilers.

For example, in Belgium a combination of new restrictions on fossil fuel heating and a VAT reduction on heat pumps in new buildings has helped an increase of 7% to 111,000 units. Similarly, 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.

Paul Kenny, director general of the European Heat Pump Association (EHPA) commented:

“It’s government 101 that taxation is how you change behaviour. European countries need to move fast to reduce taxes on heat pumps and electricity so they become the most competitive choice. This must be consolidated through stable policies. Otherwise, Europe is still relying on fossil fuel imports from unreliable partners. The weekend’s events in Iran show the need for this more clearly than ever.

“The European Commission’s upcoming heating and cooling strategy and electrification action plan are great opportunities to encourage governments to reduce electricity tax faster, since it has a clear impact on the domestic manufacturing of both residential and industrial heat pumps,” said Kenny.

Eva Neudertová, director of the Czech Heat Pump Association said:

“The Czech market returned to pre-crisis sales levels last year, however, right now the market is once again exposed to emerging downside risks since the flagship subsidy programme Nová zelená úsporám is currently being scaled back due to mounting pressure on the state budget. “

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.

In contrast, 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.

In terms of sales compared to the population size, the biggest markets remain Norway, Finland and Sweden with over 30 heat pumps sold per 1,000 households. The smallest are Poland and the UK with under five, showing the huge potential.

EHPA is in the process of gathering sales numbers for large heat pumps; the trend is clearly upwards, with increasing numbers of factories and district heating systems around Europe installing large heat pumps.

*The countries are Austria, Belgium, Czech Republic, Switzerland, Denmark, Spain, Finland, France, Italy, Netherlands, Norway, Poland, Portugal, Sweden, Switzerland, UK

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Flemish and Dutch partner with industry to boost heat pumps

Sarah Azau — Tue, 10 Feb 2026 10:24:55 +0000

Both the Flanders region of Belgium and their neighbours in the Netherlands have taken steps to speed up heat pump rollout through partnerships with the industry. Flanders is focusing on heat pumps in renovations; the Dutch on social housing.

In Flanders nearly 70% of homes are technically ready for a heat pump, yet only about 10% of renovating households choose to install one. To tackle this and reach a 70% share of renovations with a heat pump, the Flemish government and industry associations have signed a ‘Heat Pump Charter’ which aims to make the technology more affordable, reduce electricity costs, and improve guidance for families planning renovations.

Measures include premiums of up to €8,000, low-interest or interest-free renovation loans, and better advice from public energy guidance services. On the industry side, efforts must be made to provide transparent quotations, improve installer skills and customer communication.

In the Netherlands, a coalition of housing corporations, heat-pump manufacturers, installers and government bodies have signed a declaration of intent to make heat pumps significantly cheaper for use in social rental housing.

The plan aims to halve the lifetime costs of heat pumps, including purchase, maintenance and replacement, making them financially viable for large-scale installation in properties managed by rental associations. Lower costs could in turn deliver lower energy bills for tenants and help social housing providers accelerate the shift away from gas heating.

Together, these efforts show the importance of working in coalitions to make clean heating technologies affordable and attractive, helping to reduce dependence on fossil fuels, and carbon emissions from buildings, while protecting household budgets.

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EIB makes €3 billion available for clean heat investments

Sarah Azau — Fri, 06 Feb 2026 10:30:20 +0000

It’s important to help people to install heat pumps and insulate their homes.

This can be done by enabling upfront investment to kickstart the shift, especially for the less well-off.

To this end, the European Investment Bank (EIB) has €3 billion to lend to EU governments, so they can invest in heat pumps and other clean solutions today.

This is possible thanks to the upcoming price on carbon pollution from buildings and road transport – the EU’s second Emissions Trading System – which starts in 2028.

EU countries will be able to help their citizens to switch to heat pumps, and pay the bank back later with the revenues from the carbon price.

The decision by the EIB is a great opportunity for EU governments to get started, and make European buildings healthier, warmer and climate-friendly, while protecting the most vulnerable.

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