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

Gas is several times cheaper than electricity in much of the EU. This is mainly due to differences in taxes...

04 Nov 2026

Heat pumps should get a dedicated programme within the EU’s next big research budget, EHPA argues. The EU is d...

30 Oct 2026

The smell of beets, the noise of heavy machinery, the sight of steam swirling into the sky. Part of the...

28 Oct 2026

Publications, position papers
and joint statements:

Heat pumps should get a dedicated programme within the EU’s next big research budget, EHPA argues. The EU is d...

30 Oct 2026

In a joint letter to the Irish Presidency of the Council of the EU and EU energy ministers, EHPA, smartEn,...

28 Oct 2026

How can the EU accelerate heat pump deployment? As the European Commission explores a ‘clean heat market...

27 Oct 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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