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Electricity costs drive heat pump sales

BELGIUM: The European Heat Pump Association (EHPA) has insisted that cost-effective electricity is key to heat pump uptake in Europe, on a day it has designated as Heat Pump Day.

Data put together by the EHPA shows that, in most European countries, gas is subsidised by governments, avoiding carbon taxes and keeping it at an artificially low price relative to electricity.

Maps published by the EHPA – which cover six-month periods since 2021 – show there was a short-lived change around the 2022 energy crisis, when gas was more expensive. That contributed to a record year for heat pump sales. 

However, this did not last and, today, in much of Europe, electricity costs more than 2.5x more per unit than gas. The HPA insists that electricity should be maximum around twice the price of gas to make a heat pump a good investment.

The most recent figures from EHPA show heat pump sales fell 47% in Europe in the first six months of 2024, compared to the same time period in 2023.

The exceptions are Finland, Norway and Sweden, where there is very little gas and heat pump use continues to be widespread.

“Heat pumps are crucial to ending Europe’s reliance on fossil fuel imports, critical in achieving a secure sovereign energy system that is insulated from foreign actors and their use of energy prices as a weapon of war,” said EHPA director general Paul Kenny. “But it won’t happen if it’s too expensive for consumers and businesses. If EU governments are serious about energy sovereignty, competitiveness and sustainability, they should ensure energy prices favour heat pumps.”

The EHPA’s Heat Pump Day celebrates the benefits of heat pumps in terms of sustainability, energy independence and comfort on and around 21 October. Events and activities are taking place across Europe to mark the occasion.

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