Solar Panels vs. Heat Pumps in Ireland: Which Should You Install First?

With rising energy costs and growing climate targets, many Irish homeowners are choosing to invest in both solar panels and heat pumps. But when budgets are limited, a common question arises: which should you install first?

According to the Sustainable Energy Authority of Ireland (SEAI), combining renewable electricity generation with low carbon heating is one of the most effective ways to reduce household emissions and long term energy bills.

The right order depends on your home’s insulation level, heating system, electricity usage, and future plans. In this guide, we explain how both technologies work, how they complement each other, and which usually makes sense to install first.

Understanding Solar Panels and Heat Pumps

How Solar Panels Work

Solar panels convert daylight into electricity for use in your home. This power can run appliances, charge EVs, and supply heating systems.

Learn more in How Much Solar Power Do You Really Need in Ireland?.

How Heat Pumps Work

Heat pumps extract low level heat from the air or ground and upgrade it for space heating and hot water. They use electricity instead of fossil fuels and are far more efficient than traditional boilers.

Together, solar panels and heat pumps create a low carbon, electric powered home.

How These Systems Work Together

When combined, solar and heat pumps deliver strong performance:

• Solar generates clean electricity
• Heat pumps use that electricity for heating
• Batteries store excess power
• EV chargers use surplus energy

This creates an integrated home energy system.

For storage integration, see How to Integrate Your EV Charger with a Home Battery.

Installing Solar Panels First: Pros and Cons

Advantages

Lower Bills Immediately

Solar reduces electricity costs from day one.

Supports Future Upgrades

It prepares your home for heat pumps, batteries, and EV charging.

Easier Installation

Most homes can install solar without major building changes.

Generates Income

You can earn export payments from excess energy.

See Solar Export Payments in Ireland: A Complete 2026 Guide to Earning from Excess Energy Generation.

Disadvantages

Limited Heating Impact Alone

Solar does not directly replace fossil fuel heating.

Winter Output Is Lower

Production drops during darker months.

Installing a Heat Pump First: Pros and Cons

Advantages

Major Carbon Reduction

Heat pumps replace oil or gas systems.

Stable Heating Costs

You avoid fossil fuel price volatility.

Strong Grant Support

SEAI grants are available for eligible homes.

According to SEAI’s guidance on home energy upgrades, improving heating efficiency is a key step in reducing residential emissions.

Disadvantages

Higher Upfront Cost

Heat pumps require larger initial investment.

Insulation Requirements

Many homes need upgrades first.

Higher Electricity Use

Without solar, running costs may be higher.

Learn more in Maximum Solar Panel Capacity for Irish Homes: What’s the Limit?.

Which Should You Install First in Most Irish Homes?

Scenario 1: Average Insulation and Gas or Oil Heating

For most homes in this category, solar panels usually come first.

Why:

• Lower cost entry point
• Immediate savings
• Supports later heat pump installation
• Improves BER rating

Scenario 2: Well Insulated or New Build Homes

If your home already meets insulation standards, installing a heat pump first can make sense.

Why:

• Maximum efficiency
• Low running costs
• Ready for full electrification

Scenario 3: Planning a Full Retrofit

If you plan a major upgrade, the best option is often installing both together.

This allows:

• Optimised system sizing
• Lower installation disruption
• Better grant planning
• Faster payback

The Role of Home Batteries

Adding a battery improves both systems.

Batteries allow you to:

• Store solar for evening heating
• Power heat pumps at peak times
• Reduce grid dependence
• Improve system efficiency

See Home Battery Storage Explained: How It Works.

Cost Comparison in Ireland

Typical Solar Costs

• €6,000 to €12,000 for residential systems

Typical Heat Pump Costs

• €9,000 to €18,000 before grants

Actual costs depend on home size, system design, and installation complexity.

To understand financial returns, see What’s the ROI on Solar for Irish Commercial Properties?.

Grants and Incentives

Solar Grants

SEAI provides grants for domestic solar PV installations.

Heat Pump Grants

Higher grants are available for heat pump systems in qualifying homes.

Planning both together helps maximise available supports and avoid duplicated work.

How Solar Helps Heat Pumps Perform Better

When solar powers a heat pump:

• Running costs drop
• Carbon footprint falls
• Grid dependence reduces
• Energy independence improves

For many homes, this combination delivers the lowest possible lifetime energy costs.

Read more in The True Carbon Footprint of Solar Panels: Ireland's Pathway to Net Zero.

Common Myths

“You Must Install a Heat Pump First”

Not true. Solar often provides better early returns.

“Solar Is Wasted Without a Heat Pump”

False. Solar benefits all-electric homes.

“Heat Pumps Are Only for New Builds”

Incorrect. Many existing homes qualify after upgrades.

“You Cannot Add One Later”

Both systems can be added in stages.

See How to Add More Solar Panels to Your Existing System.

Making the Right Choice for Your Home

Ask yourself:

• Is my home well insulated?
• What is my current heating system?
• Do I plan to buy an EV?
• Do I want batteries later?
• What is my budget?

Answering these helps determine the best starting point.

Final Thoughts

For most Irish homeowners, installing solar panels first is usually the smartest starting point. It delivers immediate savings, prepares your home for electrification, and supports future heat pump installation.

However, well insulated homes or full retrofit projects may benefit from prioritising heat pumps or installing both together.

The best approach is a professionally designed, integrated system that matches your home and long term goals.

WattCharger supplies and installs both solar panel systems and heat pumps, allowing you to plan a complete energy solution with one trusted provider.