5 things you should know about heat pumps

Did you know that modern heat pumps are 3 to 5 times more energy efficient than traditional gas boilers? That means they provide much more heat energy than the electricity they consume, making them a smart and reliable way to keep your home or office comfortable all year round. Heat pumps have been part of the clean energy solutions for decades, and thanks to technological progress they will continue playing this role in the future.

Despite their growing popularity, certain myths still lead to confusion or doubts. Here are 5 things you should know about heat pumps.

1. Heat pumps work well in cold climates.

Heat pumps provide the most energy-efficient heating in many cold climates around the world. In fact, Norway, Finland, Sweden and Estonia have the highest number of heat pumps per capita in Europe. Coming out on top in the EU is Finland with 524 heat pumps installed for every 1 000 households.

Heat pumps extract heat from a source, like outside air, then increase the temperature and transfer the heat to where it is needed. Even air that feels cold to us still contains thermal energy that is extracted from outside and transferred inside.

However, the reverse is also true: heat pumps are an excellent source of cooling in warm climates such as in southern Europe.

2. Heat pumps can save you money.

As heat pumps are more energy efficient than gas boilers, they can significantly lower energy bills. This is especially true in countries where electricity is not overly expensive compared to natural gas. On average, in the EU, switching from a gas boiler to a heat pump can cut a household's heating bill by 20% to over 60%, depending on local energy prices and how energy-efficient the home is. EU measures to bring down electricity prices as set out in the Affordable Energy Action Plan will also reinforce the positive effect of heat pumps on our final energy bills.

Running a heat pump works out cheaper over time, even though the initial installation of a heat pump is more expensive than installing a boiler. Upfront costs are expected to fall with advances in technology and as more heat pumps become available. Leasing, subscription models, and public subsidies are available to help households with installation costs.

In countries where electricity is not much more expensive than gas, heat pumps save you a lot of money. In the Netherlands, where electricity is on average less than 1.5 times more expensive than gas, households can reduce heating costs by up to 80% just by switching from an old inefficient gas boiler to an efficient heat pump.

On the other hand, in countries where electricity is above 3 times more expensive than gas, heating with a gas boiler can have a competitive advantage over heating with a heat pump. As the renewable energy sector is growing fast, electricity prices are becoming more competitive. Since 2019, the gap between electricity and gas prices has narrowed in the vast majority of EU countries. The business case drastically improves for households that combine a heat pump with solar PV panels. And the argument is even stronger in countries where heat pumps replace electric radiators, the argument is even stronger.

3. Extensive renovations are not necessary for a heat pump to work well

Home improvements in insulation can help, but most homes don't need extensive renovations to benefit from a heat pump.

There are several types of heat pumps: Air-to-air heat pumps (or 'reversible air conditioners') heat the air directly. Hydronic heat pumps heat water that circulates in radiators or underfloor heating. The most common is the air-to-water heat pump, which extracts heat from the air. Other types extract heat from water or the ground.

Hydronic heat pumps work most efficiently when they only have to produce warm water instead of very hot water. Heating water to high temperatures takes a lot of energy, so the system runs cheaper and smoother when it can stay at lower temperatures. That's easier to do when the home is well-insulated because less heat escapes. It also helps to have radiators or underfloor heating that can warm the space using lower-temperature water. With good controls or thermostats keeping everything in balance, the heat pump doesn't have to push itself as hard.

A heat pump can also efficiently heat older properties if the radiators are big enough or the property has had some insulation improvements. This is a quite common as oversized radiators were often installed in the past. Small improvements such as replacing draughty windows or adding insulation to walls or the roof, also make a difference.

The bigger the heat pump, the higher the upfront cost. Therefore, it can work out cheaper to invest in a smaller heat pump and make some energy efficient improvements than to invest in a bigger heat pump and make no improvements at all.

Air-to-air heat pumps can heat any building more efficiently than boilers or direct electric heaters without any other changes but also in this case, renovations will reduce their energy consumption.

4. The electricity grid can accommodate an increase in heat pumps.

According to EU estimates, there could be as many as 52 million heat pumps in Europe by 2030. Impressive in absolute numbers, this would still account for only about 5% of total annual electricity demand. The figure is slightly higher (9%) when we consider use at peak demand time (the moment of the day when the demand for electricity is highest).

Major heat pump manufacturers have committed to marketing 'energy smart' models with features to automatically save energy and reduce peak electricity demand.

Although the impact of heat pumps on electricity grids is relatively small, work is underway at EU level to modernise the electricity grid system to accommodate the switch to cleaner energy.

In countries where heat pumps replace electric radiators, the switch to heat pumps, even reduces overall electricity demand.

5. Modern heat pumps run quietly

Modern heat pumps are designed to run quietly. The noise level of the heat pump's outdoor unit is between 40-65 decibels depending on size, brand and model. This is equivalent to talking quietly. Indoor noise is much lower.

Source List

1. Heat pumps work well in cold climates.

• Heat pumps
• Video: Heat pumps - the heating solution for a clean energy transition
• Article: Coming in from the cold: Heat pump efficiency at low temperatures: Joule(20/09/2023)
• EHPA Press release: Heat pump sales 14 times greater in lead countries(03/07/2025)

2. Heat pumps can save money

• Internal estimates based on Eurostat data. 2024 retail prices for electricity and gas in households. Electricity retail prices for consumption band DC, natural gas prices for consumption band D2.

3. Extensive renovations are not necessary for a heat pump to work well

• JRC Publication Repository: Clean Energy Technology Observatory: Heat Pumps in the European Union - 2024 Status Report on Technology Development, Trends, Value Chains and Markets (31/10/2024)
• Heat Pumps Watch: 20 Years of Heat Pumps Field Studies (03/11/2025)
• EHPA Case Studies: Heat pumps and high rise homes: case studies from across Europe (02/05/2023)
• Electrification of Heat Demonstration Project
• ADEME, Enertech, Dupret, M. & Bramkamp, U. (2025). Performance Pompes à chaleur: Réalisation d'une campagne de mesure sur des pompes à chaleur en résidentiel individuel (Rapport final)

4. The electricity grid can accommodate an increase in heat pumps.

• JRC Publications Repository: The Heat Pump Wave: Opportunities and Challenges (21/06/2023)

5. Modern heat pumps run quietly

• EPREL Public website

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