The economics of heating your home are shifting. Whether a heat pump saves money increasingly depends on what heats your home, where you live and when you use electricity. Heating oil prices have surged to a two-decade high in the US, EU and UK, dramatically improving the economics of switching for some households, while changes to electricity tariffs can make heat pumps cheaper to run. With fossil-fuel prices volatile and power systems changing, electric heating is becoming more competitive. So where do heat pumps now make financial sense, and what could make them more attractive? On today’s show, Kamala Schelling is joined by Yara van Ingen, an associate from BloombergNEF’s tech, industry & innovation team, to discuss some of her notes, including “Heating Oil Spike Opens Market for More Heat Pumps,” and “French Heat Pump Owners Gain From Cheaper Midday Power.”

Complementary BNEF research on the trends driving the transition to a lower-carbon economy can be found at BNEF<GO> on the Bloomberg Terminal or on bnef.com

Links to research notes from this episode:

Heating Oil Spike Opens Market for More Heat Pumps - https://www.bnef.com/shorts/tmxz2dt96osp00

French Heat Pump Owners Gain From Cheaper Midday Power - https://www.bnef.com/shorts/tmxxyvkk3nye00

Gas Price Spike Still Too Mild to Drive Heat Pump Surge - https://www.bnef.com/shorts/texo3ukk3ny900

Heat Pump Market Outlook 2026: Blip, Not Bust - https://www.bnef.com/insights/39389