Ireland’s government plans to introduce a new €2,000 boiler scrappage grant next week, aimed at households replacing fossil fuel heating systems with renewable alternatives like heat pumps. Climate Minister Darragh O’Brien announced the measure as part of broader efforts to improve energy affordability and accelerate the country’s clean energy transition ahead of Budget 2027.
How the €2,000 Boiler Scrappage Scheme Works
The upcoming scrappage scheme provides an additional €2,000 top-up for homeowners swapping out oil, gas, LPG, solid fuel, or electric storage heating systems for a heat pump. According to government details, this incentive stacks on top of existing retrofitting grants worth up to €12,500, bringing total potential state supports to €14,500.
The maximum combined funding package breaks down into three core elements:
- Up to €6,500 for the heat pump system itself.
- Up to €2,000 for necessary central heating upgrade works, such as new radiators or underfloor heating.
- A €4,000 renewable heat bonus grant.
Minister O’Brien stated in New York that the scheme targets boilers at the end of their lifespan and addresses price pressures, particularly in rural areas where home-heating oil and kerosene remain heavily relied upon. Central Statistics Office figures from 2024 show natural gas heats 48% of urban homes, while kerosene accounts for 41% of rural heating.
Eligibility Rules and Timeline for Applicants
The grant applies to residential properties built before 2021 that currently rely on fossil fuel systems or lack central heating entirely. Homeowners must transition to a renewable energy source, primarily a heat pump.
For implementation timelines, applications submitted from Tuesday onward or existing pending applications where works remain incomplete will automatically qualify for the grant starting 6 October. The government also plans to expand eligibility by the end of January 2027 to include households connecting to district heating systems or installing efficient electric heating systems.
Installing a heat pump typically costs around €15,000 depending on home size and required labor, an expense largely offset by the available €14,500 in maximum grants. By comparison, a new oil boiler would cost around between €1600 and €3,200, with installation between €1,100 to €2,200.
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