Swapping Your Boiler for a Heat Pump. Is it a Wise Move?

With oil and gas prices creeping higher decade by decade, oil and gas boilers are getting more expensive to run. But is a heat pump the right solution? For some, yes. For others, no. Here’s what you need to know.

Is a Heat Pump Just a New Style of Boiler?

Not exactly.

You see, boilers usually pump water out at a temperature between 50°C and 70 °C.

A heat pump, on the other hand, can churn out huge amounts of heat, but it needs to be delivered at a lower temperature (ideally no higher than 45°C) in order for them to run most efficiently.

Now look. You can run a heat pump at 50°C or 70°C, just like a boiler. It will work. And it will be more eco-friendly than a boiler. But it won’t save you money!

So if you’re serious about getting the best out of a heat pump, it needs to be set up as a heat pump. Not just a fancy new kind of boiler.

Unfortunately, many heating system engineers still treat heat pumps just like boilers. So if you go for a heat pump, it’s essential to choose an installer who’s focussed on getting the best performance from heat pumps.

Moreover, heat pumps are not a good match for start/stop blast-of-heat-in-the-evening usage. This is because heat pumps are best at providing steady, consistent warmth, rather than short bursts of heat. So getting the best from a heat pump also takes the right strategy from the homeowners.

How Much Can You Save With a Heat Pump vs a Boiler?

So you’ve chosen an expert heat pump installer, and had a high-quality installation. How much can you expect to save?

I promise we’ll get to the numbers in a short moment.

First though, it’s essential to understand the comparison. You see, the heat pump will be set up to provide 24-7 warmth. So to compare like with like, we’ll also assume that oil or gas heating would also be set up for around-the-clock comfort. Okay? Let’s go.

Here’s how the costs stack up for a typical Irish home (2005 semi-d):

As you can see, in this example, a heat pump would save you around €1,000 per year compared to an oil or gas boiler.

Pro Tip: If you install a heat pump, use Kilowatt.ie to compare electricity tariffs, as it can factor your heat pump into the calculations. This can save you several hundred euro extra over a generic price comparison.

Personalise your calculations:
Heat pump vs oil boiler savings calculator
Heat pump vs gas boilers savings calculator
Heat pump vs oil boiler payback period calculator
Heat pump vs gas boiler payback period calculator

Heat Pump Retrofit Costs

Fully installed, an air-source heat pump can cost anywhere from €10,000 to €24,000 before grants. From February 2026, the SEAI Heat Pump System Grant of up to €12,500 (for houses) brings the net cost to homeowners down significantly – potentially to as low as €0 for smaller installations. This grant includes €6,500 for the heat pump, €2,000 for central heating upgrades, and a €4,000 Renewable Heat Bonus specifically for homeowners swapping from oil or gas boilers to a heat pump.

Ground source heat pumps cost around €7,000 extra, on average.

Use this calculator to estimate the cost of installing a heat pump in your home.

Times When You Shouldn’t Swap Your Boiler for a Heat Pump

In the right circumstances, a heat pump can save you a lot of money. But it can cost you a fortune in the wrong circumstances:

Your home leaks heat quickly: A home leaks heat quickly if it’s cold again just an hour or two after you switch the heat off. If you live in this kind of home, you’ll be familiar with the dilemma: Run the heat for just a few hours each day or pay an astronomical heating bill. If you’re still not sure, check your heat loss indicator to know if your home retains heat well enough to consider a heat pump. Heat pump or no heat pump, make sure to upgrade your home’s insulation.

Botched installation: It takes expertise and extra effort on the part of the installer to get the best performance from a heat pump. Unfortunately though, plenty of Irish heat pump installers are not yet up to speed on the technology.

Cost is Not the Only Consideration

Comfort: Heat pumps are a great match for thermostatic climate control. So if comfort is a high priority, then a heat pump is an ideal option

Garden Space: Swapping oil for a heat pump gets the oil tank out of your way

Health: Unlike boilers, heat pumps don’t release unhealthy fumes near your home

Convenience: Heat pumps free you from oil refills and gas bills