A heat pump replaces your gas or oil boiler with a system that runs on electricity and pulls heat from the air or ground. In the right home it’s efficient, low-carbon and eligible for the largest SEAI grant — up to €12,500. But it isn’t right for every house. This guide covers the costs, the grant, running costs, and how to tell if your home is ready.
The essentials
- SEAI grant: up to €12,500 (house) / €9,500 (apartment); €7,500 for air-to-air
- Typical install cost: around €10,000–€16,000 before grant (estimate)
- Efficiency: ~3–4 units of heat per unit of electricity
- Your home must be warm enough first (heat loss indicator ≤ 2.3 W/K/m²)
What a heat pump costs
Costs depend on the type and size of system and how much pipework and radiator/emitter work your home needs. As a rough guide to typical market prices in Ireland (before the grant):
| System type | Typical cost before grant | SEAI grant |
|---|---|---|
| Air-to-water (most common) | €10,000–€16,000 | up to €12,500 |
| Ground source | €18,000–€25,000+ | up to €12,500 |
| Air-to-air | €5,000–€10,000 | €7,500 |
Estimates, not quotes
These are indicative market ranges, not SEAI figures. Your real cost depends on your home — get 2–3 written quotes from SEAI-registered installers.
The SEAI heat pump grant
The heat pump grant is a bundle worth up to €12,500 for a house. It can be made up of:
- Heat pump unit — up to €6,500
- Central heating upgrade — up to €2,000 (radiators/pipework so the system runs efficiently)
- Renewable heat bonus — up to €4,000 (when you replace an oil, gas, solid-fuel or electric storage system)
Apartments get up to €9,500; air-to-air systems get €7,500. A technical assessment grant of €200 is also available. Full detail and how to apply is in our heat pump grant guide.
Is your home ready?
This is the make-or-break question. A heat pump runs at a lower temperature than a boiler, so it needs a home that holds heat well.
- Homes built from 2007 usually qualify with a self-declaration.
- Homes built before 2007 generally need a technical assessment to confirm the heat loss indicator is 2.3 W/K/m² or lower — unless a valid BER already shows it.
- If your home is draughty or poorly insulated, do the insulation first. See our insulation guide — it’s cheaper, and it’s what makes a heat pump pay off.
Running costs vs gas and oil
A heat pump’s efficiency is measured by its COP — it delivers around 3–4 units of heat for every unit of electricity. Because electricity costs more per unit than gas, the maths only works when the home is efficient:
- Well-insulated home: running costs can match or beat oil and gas.
- Poorly insulated home: the heat pump has to work harder and can cost more to run.
Pairing a heat pump with solar panels and a smart electricity tariff can lower running costs further — see cutting your energy bills.
Note
This is general information, not financial or engineering advice. Confirm the current grant and your home’s eligibility with SEAI, and get a professional assessment before deciding.