Subsidies for residential heat pumps in Europe

Investment costs for low-carbon heating and cooling systems such as heat pumps are still higher than for fossil fuel-based heating devices.

This means financial support schemes are still necessary to remove the barriers to investment.

These financial incentives can cover measures such as low-interest loans, grant programs, and tax rebates. They are often different for lower and higher income households.

At the same time, the EU’s REPowerEU plan, which aims to get the EU clean of fossil gas, states that the Member States should refrain from incentivising fossil fuel boilers and direct these subsidies to heat pumps instead.

What is the current situation with regard to heat pump subsidies across Europe? How does it differ from country to country? This report provides an overview of the different heat pump subsidy schemes in the EU Member States, the UK, Norway and Switzerland, as of early 2023.