In many countries, the running costs of heat pumps are still higher than those of fossil fuel boilers. This happens when the electricity price is several times higher than that of gas.
Although heat pumps are three to five times more energy efficient than boilers, even this is not always enough to make up for a far higher electricity price.
To achieve a fast return on investment and encourage people to buy a heat pump, electricity should be no more than double the price of gas.
Electricity costs can be reduced by shifting taxes and levies away from electricity bills, introducing carbon pricing and by giving consumers the option to move to a lower or variable electricity tariff if they switch to flexible, renewable heat pumps.
In addition, financial tools, government support, private sector financing and different business
concepts to reduce the cost, are essential to help consumers bear these costs and tap into the
energy savings heat pumps provide.
There is a particularly urgent need to shield low-income households from high energy prices and
support their access to cleaner and, ultimately, cheaper to run heating and cooling solutions like
heat pumps.
The map below shows the electricity to gas price ratio in various countries, using Eurostat figures from 2023.
