With Ireland’s increasing electricity supply from renewables, heat pumps have become more cost-competitive versus oil boilers. Here’s a detailed 2026 comparison using official SEAI pricing data.
Current energy prices (2026)
| Fuel | Price | Source |
|---|---|---|
| Electricity (Band DD) | 34.38 c/kWh | SEAI Fuel Cost Comparison |
| Kerosene (discounted) | 17.20 c/kWh | SEAI Fuel Cost Comparison |
| Natural gas (Band D2) | 13.00 c/kWh | SEAI Fuel Cost Comparison |
Cost per kWh of useful heat
Oil boiler (85% efficiency):
- Kerosene at 17.20 c/kWh ÷ 0.85 = ~20.2 c/kWh useful heat
Heat pump at various SPF levels:
| SPF | Electricity cost per kWh useful heat |
|---|---|
| 3.0 | ~11.5 c/kWh |
| 3.5 | ~9.8 c/kWh |
| 4.0 | ~8.6 c/kWh |
The SEAI’s own fuel cost comparison gives 8.60 c/kWh useful heat for a heat pump at SPF 4 on Band DD electricity.
Annual running cost comparison
For a typical 3-bed semi-detached home using 14,000 kWh of heat per year (SEAI average for pre-2011 semi):
| System | Annual fuel cost |
|---|---|
| Oil boiler (85% efficiency) | ~€3,332 |
| Gas boiler (90% efficiency, D2) | ~€2,022 |
| Heat pump (SPF 3.5, Band DD) | ~€1,374 |
| Heat pump (SPF 4.0, Band DD) | ~€1,202 |
Heat pump saving vs oil: ~€1,960/year at SPF 3.5
Note: These figures assume no night-rate electricity or solar PV. Adding a night-rate tariff or battery storage can further reduce heat pump running costs.
What SPF should I expect?
SPF varies by:
- Home insulation: better insulated homes allow lower flow temperatures, improving SPF
- Heat emitter type: underfloor heating gives higher SPF than radiators
- Outside temperature: Ireland’s mild climate is favourable
- System sizing and commissioning
SEAI uses SPF 4 in their official heat pump comparisons for a well-sized, well-commissioned system in an Irish home.
Gas boiler comparison
If you currently have natural gas, the comparison is closer:
Gas boiler vs heat pump at SPF 3.5 on Band DD electricity:
- Gas: 13.00 c/kWh ÷ 0.90 = ~14.4 c/kWh useful heat
- Heat pump: ~9.8 c/kWh useful heat
The heat pump is still cheaper, but the difference is smaller. The renewable heating bonus grant (€4,000 ) is available whether you’re switching from gas or oil.
Use our heat pump calculator to model your specific home.