Sales of residential heat pumps in 12 European countries rose to 1.16 million in the first six months of 2026, up from 1.05 million in the first half of 2025. This increase, reported by the European Heat Pump Association (EHPA), is linked to the Iran war's effect on oil and gas prices and electricity tax reductions in some nations.
The conflict, which began after US-Israeli attacks on Iran on 28 February, led to Iran's effective closure of the Strait of Hormuz. This disruption caused crude oil prices to reach $126 a barrel in late April, severely affecting oil and gas shipments.
Following the outbreak of the war, the European Commission published plans to encourage EU governments to lower electricity taxes. The Commission's electrification action plan suggests that electricity tax should not exceed that on gas, aiming to accelerate the transition from fossil fuels to renewable energy sources.
The EHPA stated that soaring energy prices and changes to electricity taxes have contributed to the growth in heat pump sales this year. Paul Kenny, EHPA director general, highlighted the importance of making electricity the most affordable solution by reducing electricity taxes and increasing taxes on fossil fuels.
The 12 countries included in the data are Austria, Belgium, Switzerland, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Portugal, and Sweden. The EHPA noted that heat pump sales have increased in European countries where electricity taxes have been cut, citing Germany's subsidy scheme as a factor in heat pumps becoming the primary heating technology installed there.