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

Italy's €9.3 billion for the green transition

Italy has submitted its draft Social Climate Plan, with measures set to run from 2026 to 2032. The €9.3 billio...

10 Aug 2026
Why heat pump sales are growing again

After two years of declining sales, Europe’s heat pump market is back on the rise. In 2025, around 2.9 m...

06 Aug 2026
Cooling matters: the other side of heat pumps

Cooling is essential to protect people’s health. Heat pumps can both heat and cool. They can also recover and ...

31 Jul 2026

Publications, position papers
and joint statements:

Cooling matters: the other side of heat pumps

Cooling is essential to protect people’s health. Heat pumps can both heat and cool. They can also recover and ...

31 Jul 2026
Heat pumps replace Middle East gas imports twice over

Europe’s heat pumps provide as much heat as the liquefied natural gas carried by over 200 tankers*, new analys...

22 Jun 2026
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

EU Projects

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

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

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