A NEW GRANT for those replacing a fossil fuel heating system with a renewable system will be handed out from next week. 

The measures form part of the government’s efforts to improve energy affordability and support the transition to a cleaner energy future, climate minister Darragh O’Brien said.

As of 2024, natural gas was the most used fuel to heat homes for those in urban locations, at 48%, with kerosene the most used for rural homes at 41%, according to the Central Statistics Office. 

Around 15% of houses in Ireland (205,000 homes) have a heat pump, according to Building Energy Rating (BER) data.

Further measures will be considered as part of Budget 2027, and a roadmap on improving energy affordability will be set out in an action plan released next month. 

Here’s what you need to know.

What is the boiler scrappage scheme?

The new scheme will see households offered an additional €2,000 to replace fossil fuel heating systems if they are making the switch to installing a heat pump, or another form of renewable heating system. This applies in addition to existing heat pump grants and other retrofits worth €12,500.

The maximum combined supports could reach €14,500, and are comprised of existing grants, as well as the new top-up. They are as follows:

• Up to €6,500 for the heat pump system
• Up to €2,000 for upgrade works, where required, to central heating components i.e. new radiators or underfloor heating
• A €4,000 renewable heat bonus grant. Homeowners who are swapping out their existing oil/gas boiler, solid fuel heating system or electric storage heating system with a Heat Pump are eligible for this
• New fossil fuel boiler scrappage support of €2,000

Who is eligible?

The Journal understands that those who are moving from a fossil fuel heating system are eligible, including:

• oil/kerosene;
• gas;
• electric storage heaters;
• LPG;
• solid fuel;
• Or where there is no central heating system.

Households will need to switch to a renewable energy source such as a heat pump.

It will only apply to those in houses that were built before 2021.

When will it kick in?

There are two dates to be mindful of. Those who have already started the application for the installation of a heat pump, or any new eligible applications from Tuesday, will see the grant will apply automatically, and no action will need to be taken by customers. For these customers, the grant will kick in from 6 October.

This will apply to those who already have a heat pump application in progress, where works have not yet been completed, and those who have already submitted their declaration of work and are awaiting grant payment.

Additionally, as of the end of January 2027, there will be two extra options allowing people to be eligible for the grant, namely if you are:

• connecting to a district heating system or
• installing an efficient electric heating system.

Further details related to eligibility will be released by the government in due course.

How much will a heat pump cost to install?

If you’re thinking about switching to a heat pump, this will likely set you back around €15,000, depending on the nature of the work and the size of the house. This can be offset by the grants, which can be claimed up to €14,500.  

In contrast, a new oil boiler would cost around between €1600 and €3,200, with installation between €1,100 to €2,200. A new kerosene boiler can cost between €2,700 and €5,400.