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Heat pump vs oil boiler

For homes on oil, a heat pump is usually the clearest win.

Short answer

Oil is one of the most expensive and highest carbon ways to heat a home. Replacing an oil boiler with a heat pump typically cuts running costs, qualifies for the full SEAI grant including the €4,000 Renewable Heat Bonus and €2,000 boiler scrappage grant, and ends tank refills and oil price spikes.

Costs and figures

System	Efficiency	Price per kWh	Yearly cost
Oil boiler	85%	€0.11	€1,941
Gas boiler	90%	€0.13	€2,167
Electric storage heaters	100%	€0.33	€4,950
Heat pump	SCOP 3.5	€0.33	€1,414

Source: SEAI: Heat pump system grants. Last updated October 2026.

Side by side

Upfront: oil boiler €3,500 to €5,000; heat pump €500 to €8,500 for most houses after grants
Grants: none for oil; up to €14,500 for a heat pump, including scrappage
Running cost: a heat pump is usually cheaper
Hassle: no deliveries, no tank, no theft risk

Removing the oil tank

Ask your installer to quote for decommissioning and removing the tank. It frees up space and removes a leak risk.

Is this right for you?

You currently heat with oil

Your home was built before 2021

You have outside space where the tank was

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Related guides

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Heat pump vs gas boiler

Upfront cost, running cost, carbon and comfort, side by side.

Costs & grants

The SEAI heat pump grant, explained

Four grants that stack, who qualifies, and the order you must do things in so you don't lose them.

Heat pumps

What a heat pump really costs to install in Dublin

Typical prices by home type, before and after SEAI grants, and the extras that push a quote up.

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