High Electricity Prices Remain Major Barrier to Heat Pump Adoption in Ireland

The Sustainable Energy Authority of Ireland (SEAI) has identified high electricity costs as the primary obstacle preventing homeowners from investing in heat pump technology, despite government incentives aimed at boosting energy efficiency upgrades.

According to the director of retrofitting at SEAI, the elevated price of electricity continues to discourage widespread adoption of heat pumps, even as the state expands financial supports through the National Residential Retrofit Plan. This plan, published in January 2026, outlines measures to create home energy upgrades more affordable and accessible, including expanded SEAI grant schemes, a reformed Warmer Homes Scheme for households at risk of energy poverty, and a national network of SEAI One Stop Shops.

While the plan has already supported over 244,000 home energy upgrades since 2019, the persistent challenge of electricity pricing remains a critical factor in household decision-making regarding heating system investments.

The National Residential Retrofit Plan 2026 emphasizes reducing energy bills, improving home comfort, and lowering reliance on fossil fuels through measures such as insulation, heat pumps, solar energy, and deep retrofits. Additional supports include low-interest retrofit loans, reduced VAT on heat pumps and solar panels, and increased investment in retrofit skills training.

Despite these initiatives, SEAI officials maintain that unless electricity prices become more competitive, the cost-benefit analysis for many homeowners will continue to favor conventional heating systems over heat pump installations, undermining efforts to meet national climate and energy efficiency targets.