Government Lowers Cost Of Heat Pump In Ireland
Despite offering the potential for significant energy bill savings, the upfront cost of a heat pump is typically one of the biggest deal breakers for homeowners looking to upgrade their home heating system with this renewable tech. However, this barrier could now be removed following the welcome inclusion of measures set to directly reduce the cost of a heat pump in Ireland as part of the Budget 2025.
The government has announced that €1.4 billion has been allocated to the Department of Environment, Climate and Communications for next year. Homeowners considering upgrading their home heating system to a heat pump will directly benefit from this investment, with a cut to VAT on heat pumps sitting as one of the headline uses of this cash.
Specifically, VAT on heat pumps will be fixed at a lower rate of 9%. This reduction in VAT, alongside existing schemes and grants designed to cut heat pump installation costs, makes a heat pump one of the most cost-effective green home heating upgrades available right now.
Why Has VAT Been Cut On Heat Pumps?
The decision to slash VAT on heat pumps is undoubtedly linked to the Irish government’s 2030 climate targets and commitment to sustainability.
Heat pumps are an incredibly sustainable way of heating the home as they are not reliant on fossil fuels to generate heat. Instead, they take energy from the outside air and transform it into heat that can be used within the home. As well as utilising a renewable energy source (outside air), they also operate at significantly lower temperatures than a conventional oil or gas boiler.
Beyond sustainability, heat pumps also offer a range of additional benefits to Irish homeowners. Most notably, they are more efficient and therefore cheaper to run than many other home heating systems which may offer you a welcome reprieve from otherwise rising bills amidst the current cost of living crisis. A reduction in the upfront cost of a heat pump therefore makes it easier than ever for you to enjoy increased efficiency at the time when you need it most.
How To Take Advantage Of Reduced Heat Pump Costs
If you are interested in benefitting from the reduction in VAT on heat pumps, there are several steps you can take to upgrade your home heating system to a heat pump.
You should always start by seeking to understand if you are eligible for government heat pump grants and speak to an approved expert who can help you understand how a heat pump would work in your home. A suitable professional will also be able to talk you through other things you need to consider before getting a heat pump installed, such as making sure that you have appropriate levels of insulation in your home.
At Pipelife Eco, we have years of experience helping Irish homeowners enjoy the benefits of having a heat pump in their homes. With a range of products and expertise providing heat pumps to all types of homes, we can help you enjoy the benefits of this increasingly cost-effective home heating solution. Simply get in touch with us today to find out more about the cost of a heat pump and your next steps.