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SEAI heat pump grant for business rises to 45%: the cap now decides larger projects

Climeaction
Newsroom
6 October 2026
3 min read
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Heat pump design
Design it before you apply
Climeaction designs heat pump and heat recovery systems for Irish industrial sites, with baselines that stand up to SEAI and IPMVP review.
The big picture
Irish businesses can now claim 45% of heat pump costs, up from 30%.
The Sustainable Energy Authority of Ireland (SEAI) uplift takes effect today, 06 October 2026. On larger sites, the €100,000 maximum now sets the grant.

The SEAI heat pump grant for business rises to 45% of eligible costs from today, 06 October 2026. Government announced the change on 29 September 2026 under the Business Energy Upgrades Scheme (BEUS). The previous rate was up to 30% of project costs, with a maximum grant of €100,000.

For a site replacing a gas or oil boiler, the uplift adds €15,000 to every €100,000 of eligible spend. Above about €222,000, the maximum takes over.

The SEAI heat pump grant for business rises by half

BEUS is the SEAI rapid-approval route for business heating. Applicants register on the SEAI portal, answer a short set of questions and receive an automated Letter of Offer, typically within minutes. Works can start immediately.

The grant covers the heat pump and the distribution upgrades it needs, including pipework and radiators. Air source, water source and refrigerant-based systems qualify. The core condition: the heat pump must replace an existing fossil fuel heating system.

Government estimates savings of about €3,500 a year for an average installation. The announcement does not say whether the 45% rate is temporary. The parallel uplift for commercial solar photovoltaic (PV) runs for nine months, so this window may also be limited.

The €100,000 maximum binds at €222,000 of spend

The SEAI scheme page still lists a maximum grant of €100,000, and the announcement does not change it. If it holds, the uplift is worth most to mid-sized projects.

  • €100,000 eligible cost: grant rises from €30,000 to €45,000 (+€15,000)
  • €200,000 eligible cost: grant rises from €60,000 to €90,000 (+€30,000)
  • €300,000 eligible cost: grant rises from €90,000 to €100,000 at the cap (+€10,000)

Method: eligible cost multiplied by 30% and by 45%, capped at €100,000. At 45%, the cap binds from €222,222 (€100,000 divided by 0.45), against €333,333 at 30%. SEAI allows phased applications. Large process heat projects should confirm with SEAI how the maximum applies across phases before splitting work.

Get the engineering done now, while the rate is high and the design is grant-aided.
Irish sites

The state aid route decides the evidence you need

Applicants choose a state aid basis. Under de minimis, support is limited to €300,000 over three years and no proof of energy improvement is needed. Under the General Block Exemption Regulation (GBER), the project must show a 10% energy improvement for a single measure, or 25% for multiple measures.

That improvement needs a credible baseline. An energy audit sets it before works. Measurement and verification (M&V) to the International Performance Measurement and Verification Protocol (IPMVP) proves the saving after. Sites that have already used de minimis headroom on other supports may need the GBER route.

Design is grant-aided at 50%

SEAI recommends an assessment by a chartered building services engineer before applying. Technical Assistance under the scheme covers up to 50% of design costs.

Design decides the running cost. Supply temperatures, emitter sizing and heat recovery from refrigeration or compressed air set how many kWh of electricity each kWh of heat needs. A poor design can leave a site with a grant-funded system that costs more to run than the boiler it replaced.

Act this quarter, before the window narrows

Three steps for an Irish site:

  • Confirm the existing heating is fossil fuel fired and record its annual consumption in kWh.
  • Commission a design study and claim the 50% Technical Assistance support.
  • Choose the state aid route and set the baseline you will report against.

Get the engineering done now, while the rate is high and the design is grant-aided. Climeaction’s engineering design team designs heat pump and heat recovery systems for food and dairy processors and manufacturers. Talk to us about a feasibility review.

Key insight
The rate is up. The cap and the design now decide the value.

At 45%, the €100,000 maximum binds at about €222,000 of eligible spend. A grant-aided design study sets the size, the baseline and the state aid route before capital is committed.

Written by
Climeaction
Newsroom
Climeaction is a B Corp certified sustainability consultancy working across Ireland and the United States. We combine engineering and data to help businesses reduce carbon, save energy and increase profits.
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