Heat Pumps Cut European Gas Import Costs by Billions, New Data Shows
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Heat Pumps Cut European Gas Import Costs by Billions, New Data Shows

Daniel Mercer
Jun 23, 2026 11:57 AM
Updated: Jun 23, 2026 12:00 PM
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BRUSSELS — New heat pumps installed across Europe avoided about €9.7 billion in natural gas import costs in 2025 alone, according to data released Monday by the European Heat Pump Association.

The findings come from the EHPA’s 2026 market report, which shows sales of 2.9 million heat pumps in 21 European countries last year, up 13% from the previous year. The total installed stock reached 29.3 million units.

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The new installations displaced the equivalent of 2.5 billion cubic meters of liquefied natural gas, roughly 24% of the EU’s imports from the Middle East in 2025 and about 7% of total annual imported LNG, the association said. Overall, Europe’s heat pumps provided as much heating as the LNG carried by more than 200 tankers.

“Europe’s heat pumps replace Middle East gas imports twice over,” the EHPA stated in its analysis.

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The report aligns with broader EU efforts under the REPowerEU plan to reduce dependence on imported fossil fuels following the sharp decline in Russian gas supplies. Heat pumps, which are three to five times more efficient than gas boilers, support this shift by using electricity, much of it from renewable sources.

Preliminary data from 13 EU member states indicated the heat pump market grew 11% in 2025, with sales reaching 2.34 million units in those markets, according to European Commission figures.

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Germany has seen notable savings from residential heat pumps. New installations there cut the country’s LNG import bill by €1.3 billion over the three years from 2023 to 2025, according to a March report by the Institute for Energy Economics and Financial Analysis. Without those heat pumps, Germany would have needed about 16% more LNG imports during that period, the analysis found.

The EHPA and other groups have projected larger long-term benefits. Wider adoption could help the EU reduce fossil fuel import spending by tens of billions of euros by 2030.

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Industry representatives welcomed the data as evidence of progress toward energy security and efficiency goals. However, the sector has faced challenges, including a sales contraction in 2024 and barriers such as high upfront costs, installer shortages and varying national subsidies.

The European Commission has worked with the EHPA on measures to lower installation costs and accelerate deployment. Market conditions, including electricity-to-gas price ratios, continue to influence uptake.

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As of Monday, the EHPA said the 2025 figures demonstrate heat pumps’ growing role in cutting gas demand amid ongoing efforts to diversify energy supplies and meet climate targets. Further details on country-level performance and projections were included in the full market report.

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