Subsidies for residential heat pumps in Europe

16 Mar 2023

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.

You can see our 2024 report on subsidies for industrial heat pumps here.

Related articles

Polska wersja poniżej With over 20 manufacturing sites and a huge potential up-take from its 38 million citize...
13 May 2025
The European Commission just unveiled its roadmap to end Russian fossil fuel imports by 2027.   This is an amb...
07 May 2025
Despite the early start, the room of the European Parliament was packed with policymakers, energy experts, and...
25 Apr 2025
EHPA welcomes the opportunity to provide feedback on the draft related to the State Aid Framework accompanying...
24 Apr 2025