Enabling the Energy Transition
Insights
Heat Pumps C&I deployment in Ireland
By
Damien Keane
Commercial and industrial heat pump deployment in Ireland remains limited despite strong residential growth. Commercial and industrial heat pump deployment in Ireland is hampered primarily by the electricity-gas price disparity, combined with a limited market for industrial heat pumps and insufficient industry knowledge & expertise.
Additional barriers include practical constraints on expanding manufacturing and the availability of sufficient numbers of trained installers along with non-cost barriers such as lack of information, split incentives, and building regulations.
Heat pumps are a critical low-carbon heating technology for Ireland’s commercial and industrial sectors, especially as the country seeks to reduce emissions from heat, which accounts for over one-third of national energy use. Their deployment supports Ireland’s 2030 climate targets and aligns with the ambition to decarbonise heat in public and private infrastructure.
Despite their potential, heat pump uptake in large-scale applications remains limited. Key barriers include high capital costs, long payback periods, limited awareness among businesses, and technical constraints in retrofitting older buildings or integrating with existing process heat systems. Additionally, the relatively low cost of gas, combined with high electricity prices, weakens the financial case for switching.
To address this, Ireland has introduced targeted supports, such as SEAI’s Support Scheme for Energy Audits and the Non-Domestic Renewable Heat Incentive (RHI). However, industry stakeholders argue that broader and more accessible grants, faster approval processes, and clear policy signals are needed to drive investment.
Looking forward, stronger incentives such as carbon pricing, performance-based subsidies, and mandatory energy audits could accelerate uptake. Coupled with workforce training and technical guidance, these steps are essential to scaling heat pump deployment and delivering on Ireland’s climate commitments.