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?

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

Discover our latest numbers, analysis and market report:

Policy news

Around 270 kW of excess heat recovered from refrigeration, with no interruption to production during installat...

02 Oct 2026

In the first six months of 2026, sales of residential heat pumps rose by 11% in 12 European countries*, new...

28 Sep 2026

A whopping 95% of all manufactured goods contains petrochemicals. This is why decarbonising the chemicals indu...

25 Sep 2026

Publications, position papers
and joint statements:

Letting consumers choose when they use electricity – offering cheaper rates when there are more renewabl...

07 Oct 2026

A coalition of 50 companies, NGOs and industry associations, including EHPA, is calling on EU governments to u...

06 Oct 2026

The EU Single Market is essential to scaling the European heat pump sector. EHPA supports EU-level harmonisati...

17 Sep 2026

EU Projects

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

Questions? Get in touch.

Policy
Photo: Tim Buelens
Milagros García Salciarini
Policy Officer
Communications
Photo: Tim Buelens
Daniela Floris
Communications Officer

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