Key Takeaways
| Point | Summary |
|---|---|
| What a heat pump does | A heat pump uses electricity to move heat from outside to inside. |
| Typical cost in Ireland | – Full install usually costs €10,000–€24,000 before grants – Roughly €3,500–€17,500 after SEAI grants. |
| SEAI grant amounts | – Up to €6,500 for most air-to-water, ground, water and exhaust air systems – €3,500 for air-to-air + €200 for a technical assessment. |
| Running cost and savings | A heat pump can cut heating bills by around 40% compared with an oil or gas, if the house is well insulated and the unit is correctly sized. |
| Home suitability | – Heat pumps work best in well-insulated homes. – Older houses often need insulation upgrades and sometimes new radiators before a grant will be approved. |
| Climate and performance | Modern systems work efficiently even in Irish winters and can operate in temperatures around -20°C. |
| Good fit for new builds & modular | New builds, modular homes, and well-insulated cabins are ideal candidates because they already meet low-heat-loss standards. |
As energy bills continue to rise and winters stay cold and damp, more Irish homeowners are looking at heat pumps as an alternative to oil and gas. Heat pumps are now becoming a standard in many new Irish builds, as government policies are heavily promoting a transition away from fossil fuels.
SEAI grants are also making heat pumps a serious option for older homes too.
This guide walks you through what a heat pump is, how much it costs, what grants you can get, and whether it will actually save you money in an Irish home.
What Is a Heat Pump?
A heat pump is a heating system that moves heat rather than making it by burning fuel.
- In winter, it takes low-grade heat from the outdoor air, ground, or water and boosts it to a useful temperature for radiators, underfloor heating, or hot water.
- In some systems, it can also work in reverse in summer to provide a mild cooling effect.
It runs on electricity, but because it is moving heat rather than creating it, it can deliver more heat energy than the electricity it uses. This efficiency is often described with a number called the COP (Coefficient of Performance).
- A typical air-to-water heat pump in Ireland has a COP of around 3 to 4. That means 1 unit of electricity in, 3–4 units of heat out under good conditions.
So even though electricity is more expensive per unit than gas or oil, a well-designed heat pump can still work out cheaper to run overall.
How Does a Heat Pump Work ?
Most domestic systems in Ireland are air-to-water:
- The outdoor unit pulls in outside air.
- A refrigerant inside absorbs heat from this air (yes, even when it feels cold outside).
- The refrigerant is compressed, which raises its temperature.
- This heat is passed through a heat exchanger to your radiators, underfloor heating, or hot water cylinder.
- The cooled refrigerant goes back outside to pick up more heat, and the cycle repeats.
Modern units can still work at low outdoor temperatures, typically down to around -15°C to -20°C.
The system works best in a well-insulated home with steady temperatures, and not big on/off bursts like an old oil boiler.
Main Types of Heat Pumps
Based on SEAI and Irish Heat Pumps info, the main types used here are:
1. Air-to-Water Heat Pumps (Most Common)
- Takes heat from outside air and transfers it into water.
- Feeds radiators, underfloor heating and hot water.
- Standard choice for new builds and retrofits where you want to replace a boiler completely.
- Eligible for up to €6,500 SEAI grant for houses, less for apartments.
2. Air-to-Air Heat Pumps
- Takes heat from outside air and blows warm air inside through internal fan units.
- Provides space heating only (no hot water).
- More common in small apartments or commercial spaces.
- SEAI grant: up to €3,500.
3. Ground Source (Geothermal) Heat Pumps
- Takes heat from the ground using buried pipes (horizontal loops) or deep boreholes (vertical loops).
- Very stable performance and slightly lower running costs, but more expensive to install because of groundworks.
4. Water-to-Water Heat Pumps
- Uses a lake, river, or other open water source as the heat supply.
- Efficient but only suitable where you have the right water access and permissions.
5. Exhaust-Air Systems
- Recover heat from ventilation air inside the house, often in very airtight homes.
- Can be part of a wider mechanical ventilation and heat recovery (MVHR) setup.
For most Irish homeowners, air-to-water is the realistic option.
Heat Pump Installation Costs in Ireland
Costs vary a lot depending on:
- Size and layout of the house
- Brand and output of the heat pump
- Whether you need new radiators and cylinder
- How much insulation work is needed
Still, the broad ranges are fairly consistent across Irish suppliers.
1. Typical Hardware Costs
- Heat pump unit – €3,000 – €11,000
- Hot water cylinder – €1,500 – €2,000
- Miscellaneous materials (pipework, valves, controls) – about €1,000
So hardware alone often lands between €5,500 & €13,000.
2. Full Installation Cost (Before Grants)
When you add in:
- Labour for plumbers and electricians
- Commissioning
- Lifts, equipment, vehicles, insurance, admin
…you typically end up with a total installed cost of around €10,000 – €24,000 (before SEAI grants)
As a rough example quoted by Bord Gáis Energy:
- Air-to-water heat pump system – around €12,000 full cost for a typical home.
3. Cost After SEAI Heat Pump Grant
With SEAI individual grants of up to €6,500, typical homeowner costs after grant often fall into the range: €3,500 – €17,500 (after grants)
To summarise:
| Item | Amount |
|---|---|
| Total cost of air-to-water system | €12,000 |
| SEAI grant | – €6,500 |
| Net cost to homeowner | €5,500 |
SEAI Heat Pump Grants in Ireland
According to SEAI’s current grant tables:
| Heat Pump Type | House (detached / semi / mid-terrace) | Apartment |
|---|---|---|
| Air-to-water | €6,500 | €4,500 |
| Ground source to water | €6,500 | €4,500 |
| Exhaust air to water | €6,500 | €4,500 |
| Water-to-water | €6,500 | €4,500 |
| Air-to-air | €3,500 | €3,500 |
| Technical assessment (where required) | €200 | €200 |
1. Who is Eligible?
Based on SEAI and supporting sources:
To apply, generally:
- Your home must have an MPRN (electricity meter) and be built and occupied before 2021.
- For older homes, the building must not lose heat too quickly – this is checked using a heat loss indicator (HLI) or BER.
- A technical assessment is required for many homes built before 2007, unless your BER already shows low heat loss.
- You must use an SEAI-registered contractor and follow SEAI rules.
For a full €6,500 grant on some schemes, Bord Gáis notes that homes often need an HLI of less than 2 and be built before 2011, which in practice means decent insulation levels.
If your house is older and leaky, you may still get the grant but you will probably be told to insulate first.
2. Extra Costs to Consider to Make Your Home “Heat Pump Ready”
This is the part many people underestimate.
To qualify for the grant and to actually benefit from a heat pump, your home needs to hold heat well. That often means either or all of the following:
- Attic insulation – roughly €800 – €3,000 before grants.
- External wall insulation – often €10,000 – €30,000, depending on house size.
- Window and door upgrades – €7,000 – €35,000 depending on size and specs.
- Radiator upgrades – many systems need larger or more efficient radiators; so expect about €1,500 – €3,500. Unipipe
SEAI also offers grants towards many of these upgrades, so while the headline amounts are high, the net cost can be much lower if you combine measures under a One Stop Shop or individual grants.
Heat Pump Running Costs vs Oil and Gas in Ireland
When a heat pump is sized and installed correctly in a reasonably insulated home, data from Unipipe and Bord Gais suggests:
- You may see up to ~40% lower heating bills compared with an older oil or gas boiler.
- Typical annual running costs for a well-insulated average house are often quoted around €600 – €1,000 per year, depending on electricity tariff and usage.
You are most likely to save money if:
- Your insulation is good (walls, attic, windows).
- Your heat pump is properly sized and designed.
- You use a steady indoor temperature, not one that fluctuates up-and-down.
- You switch to a competitive electricity tariff, possibly with day/night or smart rates.
If these conditions are not met, savings can be poor – or in some cases, bills may even go up. That is why the design and installer choice matters so much.
1. Do Heat Pumps Work Well in Irish Weather?
Yes – Irish climate is actually quite good for heat pumps:
- Winters are cool and damp, but not usually extremely cold for long periods.
- Modern systems can operate efficiently down to about -15°C to -20°C.
- The big challenge in Ireland is not the outdoor temperature – it is the age and insulation level of the home.
In a new or properly upgraded home, a heat pump can keep the house warm and comfortable all winter with very stable temperatures.
2. When is a Heat Pump Worth the Investment?
A heat pump is usually worth considering if:
- You plan to stay in the home for a good number of years,
- You are willing to invest in insulation (if needed),
- You want to move away from oil or gas,
- You care about long-term running costs and emissions.
A heat pump might not be the best fit if:
- You can’t insulate properly (protected façade, structural issues, etc.),
- You only heat a small part of the house and rarely turn on the rest,
- You have high hot-water demands that are hard to meet with a standard cylinder.
For many owners of new builds, modular homes, extensions and upgraded older houses, a heat pump is now the default choice – and SEAI grants make that decision easier to justify.
Planning Permission and Heat Pumps
In many cases, a domestic heat pump is treated like other minor external units (similar to external units for some heating or AC systems) and may not need full planning permission, as long as it meets certain size and noise conditions and is placed carefully.
For both domestic/residential ground and air source heat pumps:
- The level of the ground must not be altered by more than 1m above or below the level of the adjoining ground.
- The total area of any air source HP or combination of two heat pumps must not exceed 2.5 sq. m.
- The heat pump must be a minimum of 50cm from the edge of the wall or roof on which it is mounted.
- Noise levels at the nearest party boundary must not exceed 43 db(A).
- No structure must be placed to the front of a building
For more details on industrial and agricultural settings, read HERE
However:
- Always check your local authority guidance or speak to a planner if your house is in an Architectural Conservation Area
- Be mindful of noise and placement if you are close to your boundary or neighbours’ windows.
How to Choose a Heat Pump Installer in Ireland
Because the heat pump system is so sensitive to design, choosing the right installer is critical.
Some practical checks include
- Use an SEAI approved assessor to assess your home first.
- Then check for an approved SEAI heat pump installer in your area. (Look for solid reviews on Google, Trustpilot, etc).
- Ask for at least one reference from a previous customer (in case you think some reviews are from bots).
- Ask simple technical questions, like:
- “What COP/SCOP are you designing for?”
- “What flow temperature will the system run at?”
- “Do I need radiator upgrades to run at lower temperatures?”
If they can’t explain things to you in plain, simple English, then they may not fully understand the technology themselves.
