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Updated March 2026 · Irish energy prices

Heat Pump vs Gas Boiler Ireland
The Real Cost Comparison

Switching from a gas boiler to a heat pump saves the average Irish home €400–€900 per year in running costs. With SEAI's €12,500 grant, the financial case has never been stronger — but it depends heavily on your home's insulation level.

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See if a heat pump makes financial sense for your home

At a glance: heat pump vs gas boiler

Heat pump

  • Running cost: €800–€1,400/yr (3-bed semi)
  • Install cost: €12,000–€18,000 (before grant)
  • SEAI grant: up to €12,500
  • No fuel deliveries, no gas bills
  • 20–25 year lifespan
  • Qualifies for green mortgage rates
  • ~Works best with good insulation (B3 or better)
  • ~Electricity rates matter — use a night tariff

Gas boiler

  • Running cost: €1,200–€2,000/yr (3-bed semi)
  • Install cost: €2,000–€4,000 (new boiler only)
  • No SEAI grant available (from 2022)
  • Gas price volatility risk (seen in 2021–23)
  • ~12–15 year typical lifespan
  • Does not qualify for green mortgage
  • Works in any insulation level
  • Natural gas ban on new connections from 2025

Detailed 10-year cost comparison

To compare fairly, you need to look at the total cost of ownership over 10 years — including installation, running costs, and maintenance — not just the upfront price. Here's how the numbers stack up for a typical 3-bed semi-detached house in Ireland.

Cost itemHeat pumpGas boiler
Installation cost€15,000€3,000
SEAI grant−€12,500€0
Net installation cost€2,500€3,000
Annual running cost€1,100/yr€1,600/yr
10-year running costs€11,000€16,000
Annual servicing€150/yr€100/yr
10-year servicing total€1,500€1,000
Replacement at year 12–15Not needed€3,000
Total 10-year cost€15,000€23,000

Heat pump saves ~€8,000 over 10 years

For a typical 3-bed semi-D in Ireland, switching from gas to a heat pump with SEAI grants saves approximately €8,000 over the first 10 years.

Which Irish homes are best suited to a heat pump?

Heat pumps work in almost any home, but they work best when the home is reasonably well insulated. A heat pump running at lower flow temperatures (35–45°C) is far more efficient than one forced to run at 60°C+ to compensate for heat loss. Here's a practical guide.

Ideal candidates

  • ·BER C or better — heat pump runs efficiently
  • ·Homes with attic + cavity insulation already done
  • ·Any home willing to insulate before installing
  • ·Homes replacing oil boilers (biggest saving)
  • ·New builds (designed for heat pumps)
  • ·Homes with south-facing space for outdoor unit

Works but plan carefully

  • ·BER D or E — worth insulating first
  • ·Period homes with solid walls (EWI required first)
  • ·Homes with small radiators (need upgrading)
  • ·Gas boiler homes (saving smaller vs oil)
  • ·Homes without hot water cylinder space
  • ·Listed buildings with planning restrictions

What's the installation disruption like?

One of the biggest concerns homeowners in Dublin, Cork, and Galway raise is: how much disruption will a heat pump installation cause? Here's the honest picture.

AspectHeat pumpGas boiler (replacement)
Installation time3–5 days1–2 days
Access to hot water during worksYes (temporary)Restored within hours
Radiator work requiredOften — larger radiators neededUsually not
Outdoor unit space neededYes — roughly 1m² outsideNo
Cylinder space requiredYes — if not already presentOften already present
Electrical upgrade neededSometimes — larger fuse boardNo
Planning permissionUsually exemptNot required

Long-term savings — and why gas boilers face an uncertain future

Ireland's Climate Action Plan commits to eliminating fossil fuel heating in homes by 2050. From 2025, Bord Gáis and Gas Networks Ireland are no longer connecting new homes to the gas network. This means the value proposition for gas boilers will continue to weaken.

Meanwhile, electricity costs in Ireland are increasingly linked to renewable generation (wind, solar), which has lower marginal cost than gas. As renewable capacity increases, electricity prices are expected to stabilise or fall relative to gas. Heat pump economics will improve over time.

For homeowners considering a boiler replacement today — a new gas boiler costs €2,000–€4,000 with no grant — the question is whether it makes more sense to spend a little more now (net €2,500–€5,000 after SEAI grants for a heat pump) and lock in lower running costs for 20+ years.

Find out which is right for your home

Our free checker looks at your home's insulation level, current heating system, and energy usage to give you a personalised recommendation.

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Heat pump vs gas boiler FAQs

Is a heat pump cheaper to run than a gas boiler in Ireland?

For most Irish homes — particularly those replacing oil or solid fuel — yes. For gas homes, the saving is smaller and depends heavily on insulation. A well-insulated home (BER B or C) switching from gas to a heat pump typically saves €400–€800/yr. A poorly insulated home may see minimal savings until insulation is improved.

Can I still get a grant for a new gas boiler in Ireland?

No. SEAI removed grants for gas and oil boilers in 2022 as part of Ireland's decarbonisation plan. The only heating system grants currently available are for heat pumps (up to €12,500) and heat pump water heaters (€700).

What happens to my gas meter if I switch to a heat pump?

If you fully decommission your gas boiler, you can request Gas Networks Ireland to remove your gas meter and connection, which removes the standing charge (typically €250–€300/year). Some homeowners retain the gas connection for a gas hob.

Will a heat pump heat my home as quickly as a gas boiler?

Heat pumps work differently to gas boilers — they run at lower temperatures for longer periods rather than heating quickly to a high temperature. In well-insulated homes, this provides very consistent, comfortable warmth. In poorly insulated homes, the home may feel harder to heat quickly. Insulating before installing a heat pump is strongly recommended.