European Heat Pump Sales Surge 17% as Iran War Drives Energy Shift
Sales of heat pumps in Europe increased significantly in the first quarter of 2026. According to data from the European Heat Pump Association (EHPA), approximately 575,000 residential heat pumps were sold across eleven European countries between January and March 2026, compared with 494,000 units in the same period of the previous year. This represents an increase of 17 percent.
As reported, the Iran war, with its sharply rising oil prices, also caused sales of electric vehicles to rise by more than 50 percent in the first quarter in Europe, while battery manufacturers such as CATL from China are feeling a significant tailwind as a result of the conflict.
France, Germany and Poland with above-average growth
Growth was particularly strong in France, Germany and Poland. In these three markets, the average increase in sales was 25 percent compared to the same period of the previous year, according to EHPA. National industry experts cite rising energy prices and growing concerns about security of supply as the key drivers of this development.
A major trigger is considered to be Iran’s closure of the Strait of Hormuz on 2 March 2026, which led to an abrupt rise in gas and oil prices across Europe. According to EHPA, the impact on heat pump sales was particularly evident from March onwards.
Austria dampens overall average
Not all markets recorded growth. In Austria, sales collapsed by 30 percent over the same period. The absence of government subsidies is considered the primary cause. This decline pushed the Europe-wide average noticeably downward. Here are the figures for individual countries in comparison:
Industry voice
“If your streaming service doubles its price and then locks its films, you find a better one. Consumers have recognised that heat pumps are the solution when gas and oil are unreliable in price and supply. The European Commission has outlined important steps in its energy crisis plan to help people buy a heat pump, from VAT and tax reductions to promoting social leasing models for lower-income households. EU governments must quickly implement what they can,” said Paul Kenny, Director General of EHPA.
Background: energy prices and policy framework
Iran’s closure of the Strait of Hormuz has exacerbated the already tense situation on European energy markets. Rising gas and oil prices are increasing the economic incentive for consumers to switch to alternative heating systems. Studies from 2024 had already shown that heat pumps, in combination with photovoltaic systems, become cheaper than gas heating within eleven to fourteen years.
The European Commission has announced measures to promote heat pumps in its energy crisis plan. These include, among other things, VAT and tax relief as well as social leasing models for lower-income households. EHPA is calling on EU member states to implement these measures swiftly.
