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Written by: Briain Kelly, Editor

Heat pump installation cost in Ireland

Median heat pump installation costs typically range from €10,000 to €17,000. However, SEAI grants can massively reduce the out of pocket expense to homeowners.

These were the median, or midpoint, prices for 2025 according to SEAI figures. This means that half of all prices were lower than this, and half were higher.

These prices are typical of air-to-water systems, which are the most common in Ireland. Air-to-air systems can be less expensive, while ground source systems cost far more. A ground source heat pump typically costs in the region of €25,000 without a grant.

Grants available for heat pumps

SEAI grants can reduce the cost to install a heat pump by up to €12,500, depending on your home and which funding you can access. For many homeowners this will reduce the out of pocket bill to almost nothing. For most it will cover more than 50% of the price.

  • 1
    Up to €6,500 for the heat pump installation itself
  • 2
    Up to €2,000 for heating system upgrades
  • 3
    €4,000 for switching to a heat pump from another heating system

Example: If you are switching from an oil boiler to a heat pump in a detached house, but you do not need to replace any radiators or pipework, you will get a €10,500 grant. This leaves the homeowner with €6,000 in net costs.

Learn more about eligibility and funding levels for heat pump grants.

What affects the total cost?

The main factors that affect the price of a heat pump installation are the technical specifications of the system itself and how much work needs to be done on your home to make it effective.

  • 1

    System type: Ground and water source heat pumps are more expensive than air source systems due to the groundworks involved.

  • 2

    System size: The size, or power output, of the heat pump itself is a big factor. More powerful units require larger compressors, heating coils, and fans to deliver that heat.

  • 3

    Heating system upgrades: Any improvements required for your central heating system, such as new pipework, radiators, or a hot water cylinder.

  • 4

    SEAI grants: Your eligibility for government grants and the value of the grant you can receive.

For various works being done on the central heating system some rough costs are:

  • Boiler removal: €400–€600, but this is included in the system installation price.

  • Hot water cylinder: €4,000 for a new cylinder and removing the old one.

  • Radiators and pipes: €2,500–€4,000 depending on the scope of work.

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Is a heat pump cheaper than oil or gas?

Whether a heat pump is cheaper than an oil or gas boiler depends on two factors: fuel prices and the heating system’s efficiency.

  • 1

    Fuel price: This is the cost per kWh of electricity, oil, or gas. The latter two are significantly cheaper than electricity per unit in Ireland.

  • 2

    System efficiency: Heat pumps make up for the higher price of electricity by having an efficiency of 300%–400%. Most boilers are in the region of 94%–98% efficiency.

Cost of running a heat pump

A heat pump’s operating cost is largely determined by its efficiency, i.e. the ratio of the heat it delivers to the electricity it uses. The efficiency of a heat pump is governed primarily by these factors:

  • 1

    Heat loss: How much heat is lost through the fabric of your home such as walls, the roof, windows, and doors.

  • 2

    Temperature difference: The difference between the outside temperature and the indoor temperature you want to maintain.

  • 3

    Flow temperature: The water temperature that the heat pump produces, typically 35–55℃.

The average efficiency of a heat pump in Ireland will be between 300% and 400%, meaning it delivers 3–4 units of heat for every unit of electricity used. However, this can be lower in the coldest part of winter, or up to 500% during the day in summer. This is also called the Seasonal Coefficient of Performance (SCOP). When a heat pump is at 350% efficiency this would be called an SCOP of 3.5.

Maintenance and repair costs

A heat pump will need to be serviced regularly during its lifespan, and other things can also go wrong.

  • Servicing: This should be done every two to three years and will cost between €150 and €300 if there are no major issues.

  • Minor repairs: Repair works typically have a minimum callout fee in the region of €150, and prices then go up depending on what parts need to be replaced and the labour involved.

  • Compressor replacement: Replacing the compressor at the heart of a heat pump can run to over €2,000 for materials and labour.

If a heat pump is more than 10–15 years old, then it may not be worthwhile to carry out expensive repairs such as replacing a compressor. At that point it would be more economical to replace the heat pump altogether.

Replacing a heat pump is much cheaper than installing one for the first time, since it is simpler to attach the new unit to the existing system.

What is the lifespan of a heat pump?

A modern heat pump should last for 15–25 years if it is properly looked after. The most important things to maximise that lifespan are to make sure that the system is properly sized before installation, clean and replace the filters regularly, and have it serviced as needed.

Preparing your home for a heat pump

Heat pumps are most effective in homes with very low heat loss. This can mean upgrading the insulation in your walls and roof, as well as potentially replacing windows with triple glazing. 

All of these upgrades can be a significant expense before installing a heat pump. However, they will also reduce your heating bills and make your home more comfortable in winter.

The average cost of new home insulation before any SEAI grant aid is:

  • Attic insulation: €2,000–€2,500
  • Cavity insulation: €900–€2,250
  • External insulation: €15,000–€24,000
  • Internal insulation: €4,000–€10,500

Learn more about the benefits of getting home insulation improvements.

Is a heat pump worth the cost?

There are two things that will determine whether a heat pump is worth it for you: your savings and your comfort. This means how much you can reduce your heating costs, and if the steadier temperature makes your home more comfortable.

Lower heating bills

Heat pumps can save you a lot on heating and hot water bills. However, to be cheaper to run than a boiler they will typically need an efficiency of 300% or greater. This can require a well-insulated home.

Greater home comfort

Rather than delivering sharp bursts of heat like a boiler, a heat pump can adjust its compressor speed to keep the indoor temperature steady. This ensures a more comfortable environment at home, day and night.

FAQs

Other than the SEAI grants listed above, homeowners can also avail of the Home Energy Upgrade Loan Scheme. This offers loans of up to €75,000 for retrofits that will improve the home’s energy efficiency.

Yes, solar panels can significantly reduce the running costs of a heat pump. Because heat pumps are designed to maintain a temperature, they run during the day when solar panels are most productive. You can set many heat pumps to prioritise using solar energy when they are connected to the same system.

Yes, you can get a heat pump for your home before improving its insulation. However, it may cause issues if your heat pump becomes oversized once the heat loss in your home is reduced by the new insulation.

For the average Irish home, a heat pump will use between 2,000kWh and 4,000kWh of electricity each year. This varies based on the size of your home and its heat loss.

Yes, heat pumps are far less expensive to run than electric boilers. A heat pump produces 3–4 units of heat for every unit of electricity used, Electric boilers have at most a 1:1 ratio of energy used to heat produced.

If you have old narrow radiators they may need to be replaced with large panel radiators to better heat a room. However, many homes will not need to replace their radiators or pipes if they are of sufficient diameter.

Yes, if you have a well-insulated home, then heat pumps can be excellent value in Ireland. Winters in Ireland only occasionally go below freezing overnight, and the average lowest temperature is 5.1℃. This is well within the operating range of any heat pump.

Yes, installing a heat pump will raise your home’s value by increasing its BER. Studies have shown that going up just one level on the old BER scale could increase a home’s value by up to 4.7%.

Reduce your heating bills by hundreds of euro with a heat pump

Reduce your heating bills by hundreds of euro with a heat pump

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