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Make heat pumps affordable

Make heat pumps affordable

Heat pumps can deliver lower energy use and lower running costs than fossil fuel systems, but this efficiency is not always reflected in consumer prices.

Rebalancing taxation and price signals is essential to make clean heating the most affordable choice for consumers.

In many cases, electricity is taxed three to seven times more than gas. Those countries have weaker heat pump markets, while markets with higher taxes on fossil fuels see greater heat pump uptake.

The upcoming price on carbon emissions from buildings and transport in the EU will also make heat pumps more attractive. 

It is important that this second EU ‘Emissions Trading System’ is implemented from 2028 as planned to unlock investment.

What should EU policymakers do?

Change energy taxation, so electricity is no longer taxed more heavily than fossil fuels
1
Phase out fossil fuel subsidies that undermine electrification, affordability and energy autonomy
2
Implement the second Emissions Trading System, to help vulnerable households switch to clean options and encourage heat pump investment
3
Plan and use ETS 2 revenues, including the Social Climate Fund, for long-term and lasting measures to support decarbonisation
4
Ensure energy pricing and taxation frameworks help affordable heat pumps for households, businesses, industry and district heating operators
5
Discover our latest numbers, analysis and market report:

EU Projects

EHPA’s policy work on affordability is also supported by the EU-funded projects:

Policy news

EU Parliament debate: electrification of heating for energy security

Energy security is not only about supply. It is also about price stability and protecting Europe’s economy fro...

20 May 2026
EU confirms second Industrial Heat Auction after industry call

Less than a month after EHPA and industry partners called for a recurring EU Innovation Fund Heat Auction, the...

19 May 2026
Energy crisis sees rise in heat pump sales

Sales of residential heat pumps went up 25% in the first quarter of 2026 in France, Germany and Poland on...

04 May 2026

Publications, position papers
and joint statements:

Manifesto: how to speed up heat pump rollout

In a world of geopolitical turmoil, fossil energy prices are spiking more than ever. Heat pumps replace fossil...

22 May 2026
Joint letter: energy security and affordability in a new geopolitical era

Europe faces an increasingly volatile geopolitical landscape. Russia’s war against Ukraine and rising tensions...

13 May 2026
Joint letter: accelerating flexible electrification demand in the EU

The electrification of buildings, transport and industry requires an energy system that is not only clean, but...

12 May 2026

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