As Europe pushes toward energy efficiency and carbon neutrality, many countries have introduced strong financial support to encourage the adoption of heat pumps. These subsidies vary by country and region, and they range from tax credits to direct grants. Here’s an overview of major European nations’ latest heat pump subsidy policies.
Germany: Up to 30% Subsidy for Residential and Commercial Installations
Germany leads in heat pump adoption thanks to support from the Federal Energy and Climate Fund (BEK). Subsidies vary by project type and energy standards:
- Residential buildings: Up to 30% of investment cost for systems like air source heat pumps
- Commercial projects: Higher subsidies possible for large-scale, energy-efficient systems
- Additional support may apply when combined with solar or other renewable technologies
France: Fixed Subsidies and Low-Interest Loans for Homeowners
France supports heat pump installation through its Energy Transition Plan and ADEME:
- Single-family homes: Fixed grants and tax incentives
- Multi-family/commercial projects: Variable subsidies based on energy efficiency and scope
- Accelerated Energy Transition Support Program offers higher grants and low-interest loans
United Kingdom: Support via the Green Homes Grant Scheme
The UK government promotes heat pumps under the Green Homes Grant Scheme:
- Air source heat pumps: Partial installation cost coverage
- Ground source heat pumps: Higher subsidies, but stricter eligibility
- Additional support through the Boiler Upgrade Scheme may be available
Netherlands: Up to 45% Support for Commercial Projects
The Netherlands offers incentives under the Energy Investment Allowance (EIA):
- Businesses: Up to 45% investment support for air or ground source heat pumps
- Homeowners: Local municipalities may offer residential heat pump grants
- Tax deductions also support green energy investments
Sweden: Strong National Support and Tax Relief
Sweden encourages heat pump adoption through:
- Installation grants for households and small businesses
- Environmental tax relief for systems meeting eco-standards
- High market maturity and acceptance of heat pump technology
Belgium: Regional Subsidies in Flanders and Wallonia
Subsidy programs vary by region:
- Flemish region: Investment subsidies up to 30% depending on the pump type
- Wallonia: Energy transition incentives for efficient heating and energy-saving upgrades
- Homeowners should check local eligibility criteria and documentation
Italy: Tax Relief and Energy Efficiency Incentives
Italy promotes heat pumps through the Green Tax Relief Program and energy-saving grants:
- Residential and commercial systems: Eligible for tax rebates or direct grants
- Subsidy amount depends on efficiency class and building type
- Part of Italy’s broader push for sustainable home renovation
Spain: Regional Energy Efficiency Support
Spain offers regional programs for energy-saving upgrades:
- Heat pump subsidies tied to local energy efficiency plans
- Grant amounts vary depending on the region and system type
- Frequently updated, so homeowners must check current guidelines
Summary: Financial Incentives Are Fueling Heat Pump Growth Across Europe
Most European countries now offer substantial financial support, including:
- Direct subsidies
- Tax credits
- Low-interest loans
- Energy investment programs
These incentives help drive the adoption of eco-friendly heating solutions for both residential and commercial properties. To access country-specific programs, consult your local energy agency or the national heat pump association for application guidelines and eligibility details.
English 
German 
French 
Spanish 
Italian 
Dutch