Optimise your electricity tariff for heat pump running costs
Heat pumps run on electricity and can significantly increase household electricity usage, particularly during colder months. While they are highly efficient, your electricity tariff plays a major role in overall running costs.
- Higher electricity demand: heating shifts energy use from gas or oil to electricity.
- Winter usage impact: colder weather can increase electricity consumption.
- Tariff structure matters: unit rates, standing charges and time-based pricing all affect total costs.
To understand time-based pricing options, see Smart Tariffs Ireland (2026).
Compare electricity plans for heat pump homes
For broader comparisons, review Electricity Rates Ireland (2026) and Cheapest Electricity in Ireland (2026).
Should I get a heat pump?
Heat pumps are an energy-efficient alternative to oil, gas, and solid fuel heating systems. They work by extracting heat from the air or ground and using electricity to transfer that heat into your home.
Because heat pumps run on electricity, they shift your heating costs from fossil fuels to your electricity bill. This makes choosing the right electricity tariff an important part of managing long-term running costs.
How does a heat pump work?
Heat pumps use refrigerant technology to absorb heat from the outside air or ground, compress it, and release it inside your home. They provide heating, and in some systems, hot water.
Why install a heat pump?
- Energy efficiency: heat pumps can deliver more heat energy than the electricity they consume.
- Lower carbon emissions: particularly when paired with renewable electricity.
- Stable long-term heating solution: less exposure to fossil fuel price volatility.
Things to consider
- Heat pumps work best in well-insulated homes.
- Your electricity usage will increase, especially in winter.
- The right electricity tariff can significantly affect annual running costs.
Available Heat Pump Grants
The Sustainable Energy Authority of Ireland (SEAI) offers grants to support the installation of eligible heat pump systems in Irish homes.
- Air to water heat pump: typically between 4,500 and 6,500 depending on property type.
- Ground source heat pump: typically between 4,500 and 6,500.
- Exhaust air heat pump: typically between 4,500 and 6,500.
- Air to air heat pump: up to 3,500.
Before you apply
- A technical assessment may be required before grant approval.
- Your home must meet minimum energy performance standards.
- Installation must be carried out by a registered SEAI contractor.
Grant amounts and eligibility criteria may change. Always check the latest details directly with SEAI before proceeding.
FAQs
Do heat pumps increase electricity bills?
Yes, heat pumps increase electricity usage because they replace oil or gas heating with electric heating. However, they are highly efficient, and the right electricity tariff can help manage overall running costs.
Are heat pumps cheaper to run than oil or gas?
Running costs depend on insulation, system design, and electricity rates. In well-insulated homes with a competitive electricity tariff, heat pumps can be cost-effective over the long term.
Do I need a smart meter for a heat pump?
A smart meter is not required, but some time-based tariffs may benefit certain households depending on usage patterns. It is important to compare electricity plans carefully.
How much electricity does a heat pump use?
Electricity usage varies by property size, insulation level, and system type. Heat pumps are typically efficient, but winter demand can increase overall household consumption.
After installation: review your electricity plan
Once your heat pump is installed and operational, reviewing your electricity plan can help ensure your tariff reflects your updated consumption pattern. The right plan can help manage long-term heating costs.