Heat pumps see surge in Europe as energy markets scramble

The shift to electric heating

If you’ve been tracking the vibes in the European energy market lately, you know things have been wild. With the Iran war causing major disruptions to shipping lanes—specifically the strait of Hormuz—oil and gas prices have been acting highkey volatile. Back in April, crude oil hit $126 a barrel, which definitely put the pressure on household budgets across the continent.

But here’s the plot thickens: that energy price spike, combined with some strategic tax adjustments, has pushed a 10% increase in heat pump sales. According to the European Heat Pump Association (EHPA), homeowners across 12 countries bought 1.16 million units in the first half of 2026, up from 1.05 million during the same period last year.

Why taxes matter

For a long time, the barrier to switching from traditional gas boilers to electric heat pumps has been the cost of electricity. In places like the UK, electricity has historically cost four times as much as gas, making the switch a massive L for the average wallet. The EHPA is currently calling for EU governments to stop taxing electricity more heavily than gas to incentivize the transition to renewables.

We’re already seeing some countries lean into this. Germany, for instance, has used a subsidy scheme to make heat pumps the top choice for new heating installations. The European Commission is now actively pushing member states to align electricity tax rates with gas rates to help break the reliance on fossil fuels.

Renewables taking over

It’s not just heat pumps seeing the glow-up. Solar energy is also having a moment. Government data from July shows that Great Britain saw more solar installations in the first half of this year than in any six-month stretch since 2011. A study from the Centre for Net Zero also noted that adding solar panels and battery storage can cut a family’s annual energy bill by about 62%—which is a major W.

Why it matters

As EHPA director general Paul Kenny put it, "Europe is ending its addiction to a toxic, costly drug from dodgy suppliers: gas." If governments successfully rebalance energy taxes, electricity becomes the affordable default, making the move to clean energy systems a no-brainer rather than a luxury.