heat pump sales rise across europe as energy prices increase
Heat pump demand has started 2026 on a strong footing, with new figures showing a clear rise in installations across Europe.
Data from the European Heat Pump Association (EHPA) shows a 17% increase in residential heat pump sales across 11 European countries in the first quarter of the year. The figures reflect a familiar pattern, when energy prices rise, demand for low carbon heating follows.
rising energy prices drive demand
The increase comes after a sharp rise in gas and oil prices following the closure of the Strait of Hormuz in March. This disruption placed additional pressure on energy markets across Europe, increasing costs for homeowners and raising concerns around long term supply.
In response, more households are turning to heat pumps as a stable and efficient alternative. France, Germany and Poland all recorded strong growth, averaging 25% across the quarter. It is a clear example of how quickly the market can shift when external pressures increase.
The EHPA reports that around 575,000 residential heat pumps were sold between January and March 2026, compared to 494,000 during the same period in 2025.
policy support remains critical
Despite strong overall growth, performance varies across different markets. Austria saw a 30% decline in sales, largely linked to the removal of government subsidies.
This highlights a consistent trend. Policy support remains a key driver of heat pump adoption alongside energy prices. When incentives are reduced or removed, demand can slow, even in established markets.
The European Commission has outlined a number of measures to support adoption, including potential VAT reductions and financial support for lower income households. If introduced effectively, these measures are likely to play an important role in maintaining growth.
a continued shift in heating
The move towards heat pumps has been building for several years, driven in part by sustained increases in gas prices.
Research shows that heat pumps, particularly when combined with solar PV, can become more cost effective than gas systems within about 12–14 years, with studies finding payback periods typically around 12–15 years depending on housing and system design. Air source heat pumps are also widely recognised in comparative studies as one of the most cost-effective low-carbon heating options available today.
This long term cost advantage, combined with ongoing energy uncertainty, continues to strengthen the case for heat pumps across Europe.
what this means for the uk
While these figures relate to mainland Europe, the same drivers are shaping the UK market.
Rising energy costs, policy changes and growing awareness of low carbon heating are all contributing to increased demand. As seen in other European markets, adoption can accelerate quickly when these factors align.
For installers and developers, this creates a clear opportunity. Demand is growing, expectations are rising, and the need for well designed, high quality systems is only increasing. Those already working with heat pumps, or considering the move, are well positioned as the market continues to expand.
MCS umbrella scheme
If you want to install MCS accredited heat pumps and help your customers access funding like the Boiler Upgrade Scheme, our Alto Assured MCS Umbrella Scheme is the perfect solution. We’ll handle all the MCS paperwork and compliance for you, and our expert team will also design, supply, and commission the system, so you can focus entirely on the installation.