Ireland has just taken one of the boldest steps yet to accelerate the move away from fossil fuel heating. From 3 February 2026, the Sustainable Energy Authority of Ireland (SEAI) will more than double its maximum heat pump grant, lifting support from €6,500 to a headline figure of €12,500 per home.
For homeowners, this is not a minor tweak. It fundamentally changes the economics of heat pumps in Ireland and sends a clear message: the state is no longer dabbling in retrofit, it is committing to it.
The expanded grant is structured as a bundled support package. Homeowners can receive up to €6,500 towards the heat pump itself, up to €2,000 for necessary central heating upgrades such as radiators or pipework and a new €4,000 renewable heat bonus for switching away from fossil fuels. Crucially, this recognises a long-ignored reality: heat pumps are systems, not appliances, and many homes need more than just a box outside to make them work properly.
The changes sit within a much wider overhaul of Ireland’s residential retrofit framework under a new National Residential Retrofit Plan. Alongside heat pumps, SEAI is rolling out higher and broader grants for insulation, windows and doors, and targeted supports for first-time buyers, low-income households, social housing and community-led projects.
For homeowners considering a heat pump, the insulation message remains blunt. SEAI is explicit that homes must be well insulated to benefit. That honesty is welcome. Too many schemes elsewhere have encouraged technology-first retrofits without adequately addressing fabric performance, leaving households disappointed with comfort and running costs.
What stands out is the flexibility being introduced. Rather than forcing households into expensive “all at once” deep retrofits, the new framework allows phased upgrades, with higher grants and wider eligibility to make that approach viable. This makes a big difference for households working within real budgets.
First-time buyers of existing homes, often locked out of retrofit support at precisely the moment they most need it, will now be able to access enhanced attic insulation grants that in many cases cover most or all of the cost. Homeowners who have already insulated one wall type will, for the first time, be allowed to return for a second wall measure, which is a significant fix to a long-standing policy flaw.
There is also a notable focus on those most at risk of fuel poverty. Higher fixed grants for attic and cavity wall insulation will be available to households on qualifying welfare payments, with the explicit aim of removing upfront cost barriers altogether. Importantly, accessing these measures will not jeopardise a household’s place in the queue for deeper upgrades under the Warmer Homes Scheme.
For renters and social housing tenants, the picture is mixed but improving. Local authorities and approved housing bodies will receive increased funding rates, up to 75% of costs in many cases and potentially over 90% for fuel-poor homes once obligations and schemes are layered together. This could finally unlock upgrades in some of the hardest-to-treat housing stock, provided delivery and quality control keep pace with ambition.
One area worth watching closely is heat pump performance itself. SEAI has announced a new high-temperature heat pump pilot to assess whether emerging systems can deliver affordable running costs comparable to fossil fuel heating. That level of caution is sensible. Grants should support technologies that work in practice, not just on paper.
For homeowners who want simplicity, the One Stop Shop model remains central, with grants deducted upfront and projects fully managed by SEAI-registered providers. Low-cost loan options will continue alongside grants, creating a blended finance route that reduces both upfront and long-term cost barriers.
Stepping back, the scale of intent is hard to ignore. Between 2019 and the end of 2025, Ireland invested €1.67 billion to upgrade nearly a quarter of a million homes. This next phase goes further, faster and more directly at the structural problems that have held retrofit back.
The obvious question is delivery. High grants attract demand, and demand exposes weak points in installer capacity, quality assurance and consumer protection. Ireland will need to ensure that higher subsidies do not simply inflate prices or repeat the mistakes seen in poorly controlled schemes elsewhere.
It’ll be interesting to see how quality compares against UK BUS grant installs which have been hit or miss.
But judged on policy design alone, this is a serious intervention. By recognising real-world costs, supporting fabric first and making heat pumps financially viable for a far broader slice of society, Ireland has raised the bar.
For homeowners watching from the UK, it also raises an uncomfortable comparison. While Britain continues to debate marginal changes to grant levels and scheme rules, Ireland has made a decisive move to de-risk the transition for households.
The message is clear: if you want people to change how they heat their homes, you have to meet them where they are, financially, practically and honestly. Ireland, at least on paper, now is. Let’s see how this plays out.
