Free tool

Heat Pump vs Oil Cost Calculator

Compare annual heating costs and calculate your payback period with live Irish fuel rates.

Your Home

Annual heat demand (kWh)

Typical Irish home: 12,000–18,000 kWh/yr

Oil boiler efficiency (%)

85%

Modern condensing boiler: 88–92%

Kerosene rate (c/kWh)

SEAI discounted rate: 17.20 c/kWh

Heat Pump Settings

Heat pump SPF (Seasonal Performance Factor)

3.5

Well-insulated home: 3.5–4.5. Older home: 2.5–3.5

Electricity rate (c/kWh)

SEAI Band DD (high usage): 34.38 c/kWh

Use night rate for heat pump

Installation Cost

Installed cost (€)

Typical: €12,000–€18,000 incl. central heating

SEAI grant (€)

Max: €12,500 (unit + central heating + renewable bonus)

Annual heating cost

Oil boiler —

— litres kerosene

Heat pump —

— electricity

Annual saving

—

per year

Net cost

—

after grant

Payback

—

years

Cost per kWh of heat delivered

Oil boiler (effective cost/kWh) —

Heat pump (effective cost/kWh) —

Note: The heat pump grant figures above reflect switching from oil (unit + central heating system + €4,000 renewable bonus). You may qualify for more if you also upgrade insulation. Check your full grant eligibility →

Running costs only. Capital cost and grant are shown separately above. Kerosene energy content: 10.35 kWh/litre. Calculations based on SEAI Domestic Fuel Cost Comparison data for 2026.