Heat pump market: Austria loses ground, Europe grows

Anyone currently planning a heat pump is getting two contradictory signals. Across Europe, more households are switching, while in Austria sales figures are dropping significantly. Both are true. For your decision, this mainly means: the problem is not the technology, but the public subsidy situation. And this can be checked specifically for your federal state.

What the numbers actually say

Various figures are circulating online because time periods and equipment groups get mixed up. The most recent figures come from Wärmepumpe Austria from September 2026. According to this, 14.400 heat pumps were sold in the first half of 2026, plus 3.597 domestic hot water heat pumps. Without the hot water units, the decrease compared to the first half of 2025 is exactly 26,19 percent, and with them 26,45 percent. For the full year, the association hopes for around 30.000 units, which would again be less than before.

The other figures refer to 2025 and to partial periods. In the second quarter of 2025, all systems combined reached 13.114 units, a decrease of 13,40 percent. After three quarters of 2025, heating heat pumps were 16,55 percent behind the previous year's figure. In March 2026, the association estimated the decline after the end of the previous federal grant at around 22 percent, without specifying the year and equipment group more precisely. At the same time, according to the association, 10 percent more fossil fuel boilers were sold in 2025, totalling around 33.000 units.

Europe is growing, Austria is not

The European industry association EHPA reports an 11 percent increase in heat pumps for residential buildings for the first half of 2026, measured across 12 countries, including Austria. It cites the sharp rise in oil and gas prices since the Strait of Hormuz was closed as a likely reason. Wärmepumpe Austria explains the fact that the domestic market is shrinking anyway with a lack of planning certainty. If public subsidies start at short notice, change or are already depleted by the middle of the year, many households prefer to wait and see.

What this means for you

The federal grant Kesseltausch (boiler replacement) is exhausted; the federal government has not been accepting new applications since 10.07.2026. If you have already submitted yours, your application will continue normally. For 2027, 179 million euros are earmarked specifically for the Kesseltausch, separate from thermal refurbishment. It is not yet clear when you will be able to register for this. According to the association, the UFI-Kommission (UFI commission) will meet on 7 October, after which there should be more clarity.

The federal states continue to provide public subsidies from their own budgets, but very differently. Carinthia pays 3.000 € for a heating replacement and has been doing so independently since the federal stop. Upper Austria calculates with 100 € per kW of nominal heat output, up to a maximum of 1.700 €. In Styria, there is currently no state grant for heat pumps. You can find the status for your federal state under public subsidies.

To be honest: anyone who relies on the federal grant of up to 7.500 € for the bill and has a working heating system can wait until 2027 to replace it. But anyone who has to replace it anyway shouldn't retrofit with fossil fuels out of desperation. A new gas boiler usually stays in the cellar for 20 years or more. According to the association, new builds show that the heat pump can also survive without a public subsidy: its share there is around 80 percent. In older buildings, the flow temperature and heating load determine whether the system pays off even without federal money. Regarding the situation of the companies: according to the association, manufacturers have expanded their capacities. It is best to ask directly whether your installer has time more quickly as a result.

What you can do now

• Use the Förder-Check (subsidy check) to see what your federal state is currently paying.
• Calculate in the cost comparison how the heat pump performs without the federal grant.
• Check via the flow temperature whether your radiators are suitable.

If you want to know what a heat pump actually costs in your house, you can get quotes from up to three checked installers via our request for quotes, free of charge and without obligation.