The rates, in one place
| Job or fuel | VAT |
|---|---|
| Supplying and fitting a heat pump | 9% |
| Supplying and fitting solar panels on a home | 0% |
| Insulation and other building work | 13.5% |
| Gas and electricity | 9%, set to the end of 2030 |
| Home heating oil and solid fuel | 13.5% |
Each line is below, in the words of Revenue, which runs VAT, or the Department of Finance. These were the rates going into Budget 2027 on 6 October 2026, and the Budget's Tax Policy Changes list no VAT measure for heat pumps, solar panels or insulation, so they still stand.
Heat pumps: 9%
Revenue says:
Revenue, VAT on heat pump heating systems: "From 1 January 2025, the supply and installation of a heat pump heating system is taxable at the second reduced rate of Value-Added Tax (VAT)."
The second reduced rate is 9%. The Department of Finance's VAT paper lists the change under Budget 2025:
Department of Finance, Tax Strategy Group paper TSG 26/07 (July 2026): "the supply and installation of heat pumps reduced to 9% VAT."
SEAI's guide says something different. Its homeowner guide says:
SEAI, homeowner application guide: "There has been zero % VAT on Heat Pump Installations since 1st January 2025 (this must be claimed in a single contract/invoice)."
Revenue sets VAT, so we go by Revenue: 9%. SEAI's line about a single contract or invoice is still worth following. Ask your installer to quote the heat pump and its fitting together.
The heat pump grant is separate from VAT. With the radiator grant and the boiler scrappage grant, SEAI pays up to €14,500 for a house: see the heat pump grant.
Solar panels: 0%
TSG 26/07: "VAT rate for the supply and installation of solar panels on private dwellings moved to the zero rate effective from 1 May 2023."
SEAI's solar panel grant is up to €1,800, and from 6 October 2026 a battery grant is open too.
Insulation and other work: 13.5%
Most retrofit work is building work, so it takes the construction rate:
TSG 26/07: "Minor household repairs and renovations fall under the reduced rate applied to construction."
Gas, electricity and heating oil
TSG 26/07, the 9% rate: "It also includes the supply of gas and electricity to 31 December 2030."
TSG 26/07, the 13.5% rate: "It includes home heating oil and solid fuels, construction, non-apartment housing, hotel services, labour intensive services and general repairs and maintenance."
Carbon tax is charged on oil and gas as well, and it is due to go up on 14 October 2026: see what the carbon tax adds.
What the Budget's VAT paper looked at
The VAT paper looked at a lower rate for heat supplied through a district heating network:
TSG 26/07: "There is scope to apply a reduced rate of VAT to the supply of district heating to which the standard rate of VAT currently applies."
It also gives the case against setting VAT by how green something is:
TSG 26/07: "However, VAT is a consumption tax and the principle of fiscal neutrality requires that the same VAT rate should apply to goods and services regardless of their environmental impact."
Those were options in a paper. The Budget's Tax Policy Changes list no VAT measure for heat pumps, solar panels or insulation.
Check my home to see which jobs suit your home, what the grants add up to and the order to do them in.