Willingness to Invest in Sustainable Home Improvements Rebounds into 2026

After a decline in 2024, European consumers are showing renewed interest in investing in sustainable home improvements. Borrowing costs are down, prices on heat pumps and solar are finally correcting, and incentive schemes are coming back online. We’re not back to pre-2024 highs just yet – but we’re heading in the right direction. So let’s look at things up-close. 

2024 – a Pullback in Spending and Engagement

In 2024, only 28% of consumers were willing to invest in sustainable home improvements – that’s down from 38% the year before. Even general interest, those simply exploring options and nominally expressing some favor, fell from 50% in 2023 to 45%.

It was a combination of bad timing and bad economics:

• interest rates were still high, so financing wasn’t just unattractive, but out of reach for many
• equipment costs were inflated – solar panels and heat pumps were pricing out mid-income households
• government incentives were either unclear, delayed or scaled back; this led to uncertainty soaring, and confidence dripping

Among the worst-hit countries were Germany, Belgium and the UK – markets where government backing faltered and inflation hit hard. Higher-performing markets, like the Netherlands and Sweden, also saw noticeable pullback.

2025 – Conditions Have Shifted

Now we’re seeing the correction. Borrowing has become cheaper. Installation and tech costs are falling. Governments are re-committing to incentive programs. And, probably most importantly, consumers who put off plans last year are back in the market.

That’s why, in 2025, we expect around 35% of European homeowners to be willing to invest again – a solid recovery from the lows of 2024 – and total interest (those exploring improvements) to return to around 48–50% of the market.

This isn’t hype. It’s a result of three interacting forces:

Lower borrowing costs
Households can access credit again, and for many that’ll be the trigger to restart postponed upgrades.

Cheaper technology
Heat pumps are down 10-15% in price. Solar panel systems in some markets have dropped by up to 20%. Installation networks are more efficient and competition is helping cut costs.

Incentives coming back online
France and Germany have re-launched programs that stalled. Italy continues to support upgrades through a mix of tax incentives and local grants. Spain is pushing both national and regional programs that are getting actual uptake.

Country-Level Developments

Italy is showing the strongest rebound, with willingness to invest rising from 24% in 2024 to 37% in 2025. France follows closely at 33%, with new incentives introduced in early 2025 gaining momentum. In Spain, the share of willing investors has crossed 35%, a level not seen since 2022.

Germany shows only a modest recovery, reaching approximately 30%, hindered by inconsistent national support and ongoing policy debates. The UK remains the weakest performer, with investment willingness stagnating at 25%, primarily due to limited policy support and persistent affordability concerns.

Looking Ahead to 2026

If interest rates stay low, tech prices continue to drop and incentives remain in place, we’ll see further growth in 2026. The share of households exploring sustainable upgrades is expected to stay at or above 60%. Willingness to actually spend could hit 40%, which would be the strongest position in five years.

The big “ifs” are, however, obvious:

• if governments scale back again, recovery stalls
• if inflation rebounds and prices rise, consumers will pause again
• if interest rates creep up, financing dries up

As of right now, the fundamentals look stable – and that’s good enough. If that continues, so will growth.

Seasonal Drivers: Not Just a Winter Story Anymore

There’s also a shift in how people are thinking about insulation and efficiency. It’s no longer just about winter heating. With hotter summers across the continent, cooling has become a factor too.

Consumers are now looking at insulation as a year-round upgrade; keeping homes cooler in the summer and warmer in the winter. That’s especially true in Central and Southern Europe, where summer heat is becoming a serious comfort issue. It’s changing when and why people invest.

Conclusion

The 2024 dip was tangible and had real causes. But those causes are being addressed, and the rebound in 2025 is already underway. Right now, the smart money is on continued recovery through 2026, provided no major policy or macroeconomic reversals hit.

If you’re in the business of supplying, financing or installing sustainable home solutions, the opportunity is back. Consumers are motivated, financing is accessible again, and for the first time in a long time, the economics of home sustainability actually make sense to a growing segment of the market.

Stay focused on affordability, clear ROI and year-round comfort messaging. And watch the policy space (because that’s still the lever that can shift willingness up or down overnight).