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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?

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:

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Publications, position papers
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EU Projects

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

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