{"id":24106,"date":"2026-01-28T14:38:37","date_gmt":"2026-01-28T12:38:37","guid":{"rendered":"https:\/\/ehpa.org\/?p=24106"},"modified":"2026-01-28T14:38:37","modified_gmt":"2026-01-28T12:38:37","slug":"annual-report-2025-affordable-heat-pumps","status":"publish","type":"post","link":"https:\/\/ehpa.org\/news-and-resources\/publications\/annual-report-2025-affordable-heat-pumps\/","title":{"rendered":"Annual report 2025: affordable heat pumps"},"content":{"rendered":"<p><span data-contrast=\"auto\">People need to\u00a0be able to\u00a0<\/span><b><span data-contrast=\"auto\">afford to buy their heat pump<\/span><\/b><span data-contrast=\"auto\">\u00a0in the first place \u2013 which is why EHPA\u00a0updated its\u00a0<\/span><a href=\"https:\/\/and%20updating%20our%20report%20which%20looks%20in%20detail%20at%20subsidies%20available%20for%20residential%20heat%20pumps%20in%20all%20different%20countries.\/\"><span data-contrast=\"none\">report<\/span><\/a><span data-contrast=\"auto\">\u00a0tracking\u00a0national subsidies\u00a0last\u00a0year, and\u00a0continually\u00a0urges governments not to change or reduce support.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:312}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">What\u2019s\u00a0more, heat pump end users\u00a0need\u00a0to see a\u00a0<\/span><b><span data-contrast=\"auto\">rapid return on their investment,<\/span><\/b><span data-contrast=\"auto\">\u00a0which is\u00a0closely\u00a0linked\u00a0to the\u00a0<\/span><b><span data-contrast=\"auto\">taxes\u00a0<\/span><\/b><span data-contrast=\"auto\">governments put on the gas and electricity bills.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:312}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In February, the European Commission\u2019s\u00a0<\/span><a href=\"https:\/\/ec.europa.eu\/commission\/presscorner\/detail\/en\/ip_25_570\"><span data-contrast=\"none\">Affordable Energy Action Plan<\/span><\/a><span data-contrast=\"auto\">, which\u00a0accompanied\u00a0its Clean Industrial Deal, highlighted the importance\u00a0<\/span><b><span data-contrast=\"auto\">of reducing electricity bills and remunerating energy grid flexibility.<\/span><\/b><span data-contrast=\"auto\">\u00a0The year was book-ended by the\u00a0EU\u2019s\u00a0<\/span><a href=\"https:\/\/ehpa.org\/news-and-resources\/policy\/eu-plan-for-affordable-homes-will-boost-clean-heat\/\"><span data-contrast=\"none\">Affordable Housing Plan<\/span><\/a><span data-contrast=\"auto\">\u00a0in December. Significantly,\u00a0this plan considers\u00a0a home\u2019s\u00a0\u2018affordability\u2019 also in terms of energy costs,\u00a0says affordability should not come at the expense of sustainability, and\u00a0again repeats that\u00a0energy bills &amp; taxes must be addressed.\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">EHPA called and campaigned all year on these issues, showing high energy prices are making it\u00a0<\/span><b><span data-contrast=\"auto\">harder for households and businesses to switch from gas to heat pumps<\/span><\/b><span data-contrast=\"auto\">\u00a0through a<\/span><span data-contrast=\"auto\">\u202f<\/span><a href=\"https:\/\/www.ehpa.org\/news-and-resources\/press-releases\/electricity-cost-drives-successful-heat-pump-markets\/\"><span data-contrast=\"none\">series of maps<\/span><\/a><span data-contrast=\"auto\">\u00a0and data\u00a0<\/span><a href=\"https:\/\/ehpa.org\/news-and-resources\/press-releases\/analysis-high-taxes-on-electricity-are-slowing-heat-pump-uptake\/\"><span data-contrast=\"none\">analysis<\/span><\/a><span data-contrast=\"auto\">\u00a0showing how\u00a0many countries tax gas far less than electricity.\u00a0<\/span><span data-contrast=\"auto\">Our message is being listened to, with Germany, The Netherlands, Denmark, The UK,\u00a0Belgium\u00a0and Ireland all shifting energy taxes in favour of electricity\u00a0versus\u00a0gas.<\/span><\/p>\n<p><span data-contrast=\"auto\">Another way of\u00a0making heat pumps competitive is by putting a\u00a0<\/span><b><span data-contrast=\"auto\">price on carbon pollution<\/span><\/b><span data-contrast=\"auto\">. This\u00a0is already\u00a0the case\u00a0for energy intensive industries and electricity\u00a0under the EU Emissions Trading System (ETS).\u00a0The ETS\u00a0was due to be expanded\u00a0to buildings and road transport, making heat pumps more\u00a0competitive compared to fossil fuel heating.\u00a0However\u00a0in November, EU governments\u00a0decided to\u00a0<\/span><b><span data-contrast=\"auto\">delay\u00a0the second ETS<\/span><\/b><span data-contrast=\"auto\">\u00a0for a year to 2028\u00a0\u2013 a move EHPA\u00a0<\/span><a href=\"https:\/\/ehpa.org\/news-and-resources\/news\/delaying-ets2-undermines-europes-decarbonisation-efforts\/\"><span data-contrast=\"none\">described<\/span><\/a><span data-contrast=\"auto\">\u00a0as \u2018political posturing\u2019\u00a0when rapid\u00a0<\/span><span data-contrast=\"auto\">implementation\u00a0of the ETS is key.\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">EHPA supported its ongoing advocacy work on\u00a0the ETS2 with\u00a0a\u00a0<\/span><a href=\"https:\/\/ehpa.org\/news-and-resources\/news\/ets2-and-the-social-climate-fund-are-turning-point-for-clean-heat-in-europe\/\"><b><span data-contrast=\"none\">communications<\/span><\/b><\/a><b><span data-contrast=\"auto\">\u202fcampaign\u00a0including social media videos and an infographic leaflet.<\/span><\/b><span data-contrast=\"auto\">\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:312}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">We also\u00a0put\u00a0the issue of costs at the heart of\u00a0<\/span><b><span data-contrast=\"auto\">the\u00a0<\/span><\/b><a href=\"https:\/\/ehpa.org\/news-and-resources\/news\/meps-discuss-energy-prices-and-ets2-at-ehpa-debate\/\"><b><span data-contrast=\"none\">policy debate<\/span><\/b><\/a><b><span data-contrast=\"auto\">\u00a0for EHPA\u2019s members<\/span><\/b><span data-contrast=\"auto\">\u00a0which followed our 2025 General Assembly. Four MEPs and two energy analysts debated decoupling electricity and gas prices, how to ensure everyone can invest in a heat pump, and the future carbon cost of buildings under the EU\u2019s second Emissions Trading System.<\/span><\/p>\n<p><span data-contrast=\"auto\">One way to ensure everyone can invest in a heat pump is through\u00a0<\/span><b><span data-contrast=\"auto\">new business\u00a0models<\/span><\/b><span data-contrast=\"auto\">. One such is \u2018social leasing\u2019 or when\u00a0lower income\u00a0households can\u00a0rent a heat pump or clean technologies thanks to public financing.\u00a0<\/span><span data-contrast=\"auto\">EHPA\u202fpublished a\u202f<\/span><a href=\"https:\/\/ehpa.org\/news-and-resources\/news\/ehpa-position-on-social-leasing-for-heat-pumps\/\"><span data-contrast=\"none\">position<\/span><\/a><span data-contrast=\"auto\">\u00a0on\u00a0<\/span><b><span data-contrast=\"auto\">social leasing for heat pumps<\/span><\/b><span data-contrast=\"auto\">\u00a0ahead of the expected\u00a0<\/span><span data-contrast=\"auto\">European Commission\u00a0guidance\u00a0on the topic.<\/span><\/p>\n<p><span data-contrast=\"auto\">Social leasing is\u00a0a publicly supported\u00a0scheme that enables low-income households to access clean technologies through affordable monthly rental payments, without the need for upfront ownership.<\/span><\/p>\n<p><span data-contrast=\"auto\">EHPA believes that social leasing for heat pumps, complementing existing instruments such as grants, reduced VAT rates, and green loans, is a promising solution\u202fto overcome high upfront costs and ensure\u00a0equitable\u00a0access to clean heating for all.<\/span><\/p>\n<p><span data-contrast=\"auto\">What\u2019s more, EHPA is involved in research on the topic via\u00a0<\/span><b><span data-contrast=\"auto\">a\u00a0new EU-funded project<\/span><\/b><span data-contrast=\"auto\">,\u00a0<\/span><a href=\"https:\/\/ehpa.org\/news-and-resources\/projects\/subscription-model-for-heat-pumps-launched-via-eu-funded-project\/\"><span data-contrast=\"none\">HP SUBSCRIBE<\/span><\/a><span data-contrast=\"auto\">,\u00a0which will\u00a0look into\u00a0an\u00a0innovative\u00a0heat\u00a0pumps\u00a0on\u00a0subscription model. This should open the door for buildings to switch from fossil-fuel boilers to high-efficiency heat pumps with no upfront cost for either landlords or tenants.\u202f<\/span><\/p>\n<p><span data-contrast=\"auto\">Another\u00a0relevant EU-funded\u00a0project EHPA is part of\u00a0is\u00a0<\/span><a href=\"https:\/\/ehpa.org\/projects\/street-hp-reno\/\"><span data-contrast=\"none\">Street HP\u00a0Reno<\/span><\/a><span data-contrast=\"auto\">\u00a0\u2013 which\u00a0is developing street wide approach for housing for collective switch of energy systems to heat pumps packaged modules. The\u00a0ultimate goal\u00a0is to reduce costs and enable the large-scale deployment of heat pumps in renovation projects, serving as a key lever for decarbonising heating in existing housing.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:312}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Affirming the importance of addressing costs, the\u00a0European Commission\u2019s Heat Pump Accelerator Platform \u2013 led by EHPA, VITO and Fraunhofer \u2013\u00a0focused on this\u00a0in\u00a0its first\u00a0<\/span><a href=\"https:\/\/energy.ec.europa.eu\/topics\/energy-efficiency\/heat-pumps\/heat-pump-accelerator-platform_en#position-papers-and-other-deliverables\"><span data-contrast=\"none\">position\u00a0paper<\/span><\/a><span data-contrast=\"auto\">,\u00a0developed at the end of 2025.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:312}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">As well as\u00a0focusing on the\u00a0points mentioned\u00a0above, the paper says that\u00a0better use of flexibility\u00a0is important. This is because\u00a0heat pumps also become more attractive and affordable when consumers are offered a lower or variable electricity tariff if they switch to a heat pump (see \u2018Flexibility\u2019 section).<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:312}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>People need to\u00a0be able to\u00a0afford to buy their heat pump\u00a0in the first place \u2013 which is why EHPA\u00a0updated its\u00a0report\u00a0tracking\u00a0national subsidies\u00a0last\u00a0year, and\u00a0continually\u00a0urges governments not to change or reduce support.\u00a0\u00a0 What\u2019s\u00a0more, heat pump end users\u00a0need\u00a0to see a\u00a0rapid return on their investment,\u00a0which is\u00a0closely\u00a0linked\u00a0to the\u00a0taxes\u00a0governments put on the gas and electricity bills.\u00a0\u00a0 In February, the European Commission\u2019s\u00a0Affordable Energy Action [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":24107,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1,61,23],"tags":[],"class_list":["post-24106","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-policy","category-publications"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - 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