Why Switch to a Heat Pump?
A heat pump extracts heat from the outside air (or ground) and uses it to heat your home and hot water. Even when it's cold outside, there's usable energy in the air — a modern heat pump works efficiently down to -20°C.
For every 1 kWh of electricity a heat pump uses, it produces 3–4 kWh of heat. That's 300–400% efficiency, compared to a gas boiler at 90% or an oil boiler at 85%. This dramatically reduces your heating costs and carbon emissions.
The €12,500 Grant — How It Works
From 3 February 2026, SEAI nearly doubled the heat pump grant. The new bundled grant includes three components covering the full system upgrade, not just the heat pump unit itself.
| Component | Houses | Apartments | What It Covers |
|---|---|---|---|
| Heat pump unit | €6,500 | €6,500 | Air-to-water heat pump supply & installation |
| Central heating upgrade | €2,000 | €2,000 | New radiators, underfloor heating, pipework |
| Renewable heat bonus | €4,000 | €1,000 | Bonus for switching from fossil fuel |
| Total maximum | €12,500 | €9,500 |
If you already submitted a heat pump grant application before February 2026 and haven't yet received payment, you'll automatically receive the higher grant amount. No need to reapply.
Air-to-air heat pumps
Air-to-air heat pumps (which heat rooms directly without radiators) qualify for a lower grant: up to €3,500 for the unit plus the €4,000 renewable heat bonus = €7,500 maximum for houses. These are less common in Ireland but can suit certain properties.
Eligibility
Your home must have been built and occupied before 2021. You must use an SEAI-registered contractor. A technical assessment (€200 grant available) may be required for pre-2007 homes to confirm suitability. Both homeowners and landlords are eligible.
Types of Heat Pumps
Air-to-Water
- Most popular in Ireland (90%+ of installs)
- Heats radiators, underfloor, and hot water
- No drilling or excavation needed
- Outdoor unit + indoor cylinder
- COP 3.0–4.0 (300–400% efficient)
- Works in Irish climate year-round
Ground Source
- Slightly higher efficiency (COP 3.5–4.5)
- No visible outdoor unit
- Requires garden space for ground loops
- Higher installation cost
- Extremely quiet operation
- Best for rural properties with land
Air-to-Air
- Heats rooms directly (no radiators)
- Also provides cooling in summer
- Lower grant (€7,500 max)
- Doesn't heat water
- Can suit apartments or specific rooms
- Lower installation disruption
What Does a Heat Pump Actually Cost?
The total cost depends on your home's size, how much of your existing heating system needs upgrading, and the type of heat pump. Here are realistic 2026 figures:
| Home Type | Typical Total Cost | After €12,500 Grant |
|---|---|---|
| 2-bed terrace / apartment | €10,000–€14,000 | €0–€4,500 |
| 3-bed semi (typical) | €14,000–€18,000 | €1,500–€5,500 |
| 4-bed detached | €16,000–€22,000 | €3,500–€9,500 |
| Large detached (200m²+) | €20,000–€28,000 | €7,500–€15,500 |
Government-backed retrofit loans from 2.99% APR are available through AIB, Bank of Ireland, PTSB, and participating credit unions. A €10,000 loan at 2.99% over 10 years costs approximately €97/month — often less than what you're currently spending on oil. See financing options →
Running Costs — How Much Will You Save?
A heat pump's running costs depend on electricity prices and the system's efficiency (COP). Here's how it compares to oil and gas for heating a typical 3-bed semi:
| Heating System | Annual Fuel Cost | CO₂ Emissions | Comfort |
|---|---|---|---|
| Oil boiler | €2,000–€2,800 | High | Good |
| Gas boiler | €1,600–€2,200 | Medium-High | Good |
| Electric storage heaters | €2,500–€3,500 | Medium | Poor |
| Air-to-water heat pump | €800–€1,400 | Low | Excellent |
| Heat pump + solar PV | €400–€800 | Very Low | Excellent |
Homeowners switching from oil typically save €1,000–€1,500 per year. Those switching from electric storage heaters save even more. Combining a heat pump with solar panels creates the ultimate combo — solar powers the heat pump during the day, dramatically reducing electricity costs.
Do I Need to Insulate First?
Heat pumps work best in well-insulated homes. Unlike a gas boiler that can blast heat quickly, a heat pump delivers gentle, consistent warmth — which means your home needs to retain that heat effectively.
SEAI recommends insulating before installing a heat pump. A well-insulated home allows you to install a smaller, less expensive heat pump that runs more efficiently. The recommended approach is: attic insulation first, then walls, then the heat pump.
From 2026, One Stop Shop installations no longer require a minimum BER uplift when installing a heat pump. This makes it easier for homes that are already partially upgraded to get a heat pump through the One Stop Shop route.
How to Get a Heat Pump — Step by Step
Get a BER assessment
Understand your home's current energy rating and what insulation is recommended before the heat pump. A BER assessor will produce an Advisory Report. Read our BER guide →
Insulate first (if needed)
Address any insulation gaps — attic, walls, windows. This maximises your heat pump's performance and may qualify for separate SEAI grants. Insulation guide →
Get quotes from SEAI-registered installers
Get at least 2–3 quotes from SEAI-registered heat pump contractors. They should assess your home, recommend the right system size, and include all pipework and radiator upgrades in the quote.
Apply for the SEAI grant
Apply online at seai.ie before any work begins. Approval is usually immediate. Do not start work until you receive your grant offer.
Installation (3–5 days)
Installation typically takes 3–5 days for a full system including radiator upgrades. Your installer handles the commissioning and handover.
Post-works BER and payment
A BER assessment after installation confirms the improvement. Your installer submits the Declaration of Works. SEAI pays within 4–6 weeks.
You must receive written SEAI grant approval before any work begins. Starting work before approval permanently disqualifies you from the grant. This is the single most common and expensive mistake homeowners make.