Installing a heat pump is a significant investment, but SEAI grants dramatically reduce the upfront cost and running savings make the payback period reasonable for most homes.
Installed cost ranges
For a typical 3–4 bedroom Irish home:
| Cost component | Low | High |
|---|---|---|
| Heat pump unit | €3,500 | €7,000 |
| Radiator upgrades | €1,500 | €5,000 |
| Hot water cylinder | €800 | €1,500 |
| Installation labour | €2,000 | €3,500 |
| Controls and commissioning | €500 | €1,000 |
| Total installed | €9,000 | €18,000 |
After maximum SEAI grants:
| Grant | Amount |
|---|---|
| Heat pump unit | €6,500 |
| Central heating upgrade | €2,000 |
| Renewable heating bonus | €4,000 |
| Total grant | €12,500 |
| Net cost (midpoint) | ~€1,000–5,000 |
What affects installation cost?
Radiator upgrades are the biggest variable. If your existing radiators are adequately sized, they may work without replacement. However, many homes need larger or additional radiators, which can add €2,000–5,000.
Underfloor heating (UFH) is ideal for heat pumps operating at low flow temperatures. Retro-fitting UFH in an existing home is expensive (€8,000–15,000 per floor) and is usually not included in a standard heat pump retrofit. New builds or major renovations benefit most from UFH.
Home insulation reduces the size of heat pump needed and improves efficiency. SEAI recommends completing insulation upgrades before or alongside a heat pump install.
Geography: heat pumps are slightly less efficient in colder climates. However, Ireland’s mild maritime climate is well suited to heat pumps, especially the north and west coasts.
Running costs vs oil
At current energy prices (electricity 34.38 c/kWh, kerosene 17.20 c/kWh):
A heat pump with a Seasonal Performance Factor (SPF) of 3.5 effectively costs electricity price ÷ SPF per unit of useful heat:
34.38 c/kWh ÷ 3.5 = ~9.8 c/kWh useful heat
Compare to kerosene oil boiler at ~85% efficiency: 17.20 c/kWh ÷ 0.85 = ~20.2 c/kWh useful heat
This is a significant saving. Use our heat pump vs oil calculator for detailed numbers based on your home’s energy usage.
Source: SEAI Domestic Fuel Cost Comparison, 1 April 2026 Source: SEAI Domestic Fuel Cost Comparison, 1 April 2026