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 (collected, 2026-07-01) | SEAI Fuel Cost Comparison |
| Kerosene (discounted) | 11.72 c/kWh (collected, 2026-07-01) | SEAI Fuel Cost Comparison |
| Natural gas (Band D2) | 13.00 c/kWh (collected, 2026-07-01) | SEAI Fuel Cost Comparison |
Cost per kWh of useful heat
Oil boiler (85% efficiency):
- Kerosene at 11.72 c/kWh (collected, 2026-07-01) ÷ 0.85 = 13.78 c/kWh useful heat
Heat pump at various SPF levels:
| SPF | Electricity cost per kWh useful heat |
|---|---|
| 3.0 | 11.46 c/kWh |
| 3.5 | 9.82 c/kWh |
| 4.0 | 8.60 c/kWh |
Compare these rates using your tariff and the seasonal performance expected for your design.
Annual running cost comparison
This illustrative calculation assumes 14,000 kWh of useful heat per year. It is not a measured national average or a forecast for your home. It excludes standing charges, servicing and installation:
| System | Annual fuel cost |
|---|---|
| Oil boiler (85% efficiency) | €1,930 |
| Gas boiler (90% efficiency, D2) | €2,023 |
| Heat pump (SPF 3.5, Band DD) | €1,375 |
| Heat pump (SPF 4.0, Band DD) | €1,203 |
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 (collected, 2026-07-01) ÷ 0.90 = 14.45 c/kWh useful heat
- Heat pump: 9.82 c/kWh useful heat
Use the figures above to compare the assumed efficiencies; a different tariff or SPF can change the result. The renewable heating bonus grant (€4,000 (manual, 2026-09-22) ) is available whether you’re switching from gas or oil.
Use our heat pump calculator to model your specific home.