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  • Graham Allen
  • 4 min read

The demand for home energy upgrades is growing in Ireland. This represents a significant opportunity for contractors, especially in the heat pump sector.

A man installing a heat pump unit outside a house

A growing opportunity for contractors

With rising energy costs, increasing homeowner awareness, and strong government supports, the retrofit sector is not a short-term trend, it’s a long-term pipeline of work.

Heat pumps are a clear example of this momentum. Heat pumps are a renewable heating system, offering an alternative to fossil fuel-based heating systems.  In 2024 alone, an estimated 37,600 heat pumps were sold in Ireland, a 19% increase on 2023. This brought the total installed stock to an estimated over 153,500 units. Looking ahead, national targets aim to have 400,000 heat pumps installed in existing homes and a further 200,000 in new builds by 2030.

Ireland's growth mirrors a wider European trend. Across 21 European countries, heat pump sales reached 2.9 million units in 2025, bringing the total installed stock to 29.3 million and highlighting the significant role heat pumps will play in Europe's energy transition.

For contractors, the message is clear: demand is growing, and it’s here to stay.

Strong growth, but more capacity is needed

While the market opportunity is expanding rapidly, the supply chain is still catching up. Since January 2024, 88 contractors have registered with SEAI to install heat pumps. There are now over 600 SEAI registered contractors across Ireland available to install heat pumps under the SEAI home energy upgrades grant programme. This is encouraging progress, but it also highlights the scale of opportunity still available.

In fact, workforce analysis shows that:

  • There were approximately 9,900 plumbers, heating and ventilation engineers working in the construction sector (2019)
  • A forecasted 4,206 additional plumbing entrants will be needed for retrofit from 2024 to 2030

In other words, the sector needs skilled contractors, and it needs them now.

Why register with SEAI?

Becoming SEAI-registered is a key step for contractors looking to access this growing market.

1. Access to grant-funded work

Homeowners availing of SEAI grants must use registered contractors. With the heat pump grant now increased to up to €12,500, more homeowners are choosing supported upgrades, meaning more opportunities for registered businesses.

2. Increased credibility and trust

SEAI registration demonstrates that your business meets recognised standards. For customers, this provides reassurance. For contractors, it strengthens reputation and competitiveness.

3. Be part of a growing, supported sector

SEAI provides guidance, resources, and ongoing updates to registered contractors. You’re not operating alone, you’re part of a coordinated national effort.

Registration: simpler than you might think

A common concern among contractors is that registration is complex or time-consuming. In reality, the process is structured, transparent, and designed to support industry participation.

For many contractors, registering is about formalising skills and practices they already have:

  • Demonstrating relevant experience or qualifications
  • Providing standard business documentation (e.g. insurance, tax compliance)
  • Committing to established technical standards

There are also a growing ecosystem of training and upskilling supports available, helping contractors build the competencies required for retrofit work.

Heat pumps: a sector with long-term potential

SEAI has already grant-aided over 20,000 heat pump installations between 2019 and today, but this is only the beginning.

With hundreds of thousands of additional installations required by 2030, the retrofit sector offers:

  • Sustained demand
  • High-value, skilled work
  • Opportunities for business growth and diversification

For contractors currently working in plumbing, heating, or general construction, retrofit represents a natural progression, using existing skills in a future-focused market.

Take the next step

The retrofit sector is expanding rapidly, but its success depends on contractors stepping forward to meet demand.

Registering with SEAI is a practical way to:

  • Access a growing pipeline of work
  • Build trust with customers
  • Future-proof your business

If you’re ready to be part of Ireland’s energy transition and grow your business in the process, now is the time to take that next step.

Learn more about SEAI registration and how to apply (opens in a new tab)
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Graham Allen |Programme Executive, Supply Chain Team

Graham Allen is a Programme Executive for the Supply Chain Team within SEAI's National Retrofit Directorate. His role focuses on building and maintaining the capability and capacity of contractors across the retrofit sector.