Heat Pump vs Gas Boiler for Business Premises
A side-by-side comparison of a commercial heat pump and a gas boiler, with the running-cost break-even worked through.
The comparison at a glance
| Factor | Commercial heat pump | Gas boiler |
|---|---|---|
| Capital cost | Generally higher; published bands run from £55,000 for a 100 kW thermal air-source system, and ancillaries add to it | Generally lower for like-for-like output |
| Running-cost driver | Electricity price divided by SCOP | Gas price divided by boiler efficiency |
| Maintenance | Refrigerant circuit, fans, controls; annual servicing quoted from about £250 plus VAT in one installer guide | Burner, heat exchanger, flue; routine annual service |
| Carbon | Depends on grid carbon intensity and SCOP | Fixed by the fuel burned |
| Resilience | Depends on electricity supply; gas back-up possible in a hybrid | Depends on gas supply |
| Space and siting | Outdoor units, buffer vessels, possible plant room changes | Compact plant room and flue |
| Noise | Fan noise outdoors; a planning noise assessment is commonly requested | Usually low external noise |
| Funding | BUS grant if 45 kW thermal or less for a single heat pump (70 kW thermal for a multi-unit system) in England or Wales; capital allowances | Capital allowances may apply; no heat pump grant |
Treat the table as a framework, not a verdict. The next sections explain the rows that decide most cases.
Running cost: where the arithmetic bites
DESNZ’s Q1 2026 Quarterly Energy Prices (provisional, excluding VAT, including the Climate Change Levy) give medium businesses 25.0p per kWh for electricity and 4.55p for gas. The Climate Change Levy main rate is the same for both fuels from 1 April 2026 (0.801p per kWh), so it does not favour either.
Boiler efficiency changes the answer a little, as this table of break-even SCOP at 25.0p electricity shows (these are assumptions for arithmetic, not measured efficiencies).
| Assumed boiler efficiency | Gas heat cost (p per kWh of heat) | Break-even SCOP |
|---|---|---|
| 85% | 5.35 | about 4.7 |
| 88% | 5.17 | about 4.8 |
| 90% | 5.06 | about 4.9 |
And for a heat pump at 25.0p electricity: SCOP 3.0 gives 8.33p per kWh of heat, SCOP 3.5 gives 7.14p, and SCOP 4.0 gives 6.25p. All are above the gas figures in the table, so at these national averages gas is cheaper on energy cost. One published installer guide reports a COP 3.2 system at 24p per kWh making heat at about 7.5p against 7-8p for a gas boiler, which implies a higher gas cost than the DESNZ average; the guide does not state its gas price. The honest reading is that the result depends on your tariffs. Use the calculator and your contract prices.
Capital, siting and supply
A like-for-like boiler swap usually reuses the plant room, flue, pipework and gas connection. A heat pump may need outdoor space or a roof lift, buffer storage, controls work and possibly a larger electrical supply. A connection upgrade from your distribution network operator can add cost and lead time, so ask early. Lower flow temperatures also help the SCOP, which can mean upgrading emitters. A hybrid arrangement that retains the boiler for the coldest days can reduce that work. Published installed-cost bands are in the cost guide.
Carbon, resilience and noise
A gas boiler’s emissions are set by the fuel it burns. A heat pump’s depend on the carbon intensity of the electricity supplied and the SCOP achieved, so any percentage saving someone quotes should come with those assumptions. If your electricity is partly self-generated or on a low-carbon contract, the case improves.
Maintenance deserves the same scrutiny as capital. A heat pump has no flue or combustion, but it has a refrigerant circuit, and refrigerant handling in the UK falls under F-Gas regulation and must be done by suitably qualified people. Refrigerants in use include R32, R290 (propane, which is flammable) and R744 (carbon dioxide), and the choice can affect where a unit may be sited. Ask each installer which refrigerant they propose, what the service plan covers and who responds to a fault.
On resilience, a heat pump relies on electricity and a gas boiler on gas. Neither is automatically more secure; a hybrid keeps both. Heat pump fans create outdoor noise, and for commercial premises the permitted-development rights for air-source units are written for dwellings, so check with the local planning authority. A noise assessment to BS 4142 is commonly requested.
Funding and tax tilt the comparison
A Boiler Upgrade Scheme grant of £7,500 (or £9,000 for oil or LPG off the gas grid, 21 July 2026 to 31 March 2027) is available only for heat pumps of 45 kW thermal or less for a single heat pump (70 kW thermal for a multi-unit system) in England and Wales, and the installer applies for it. Capital allowances can apply to either type of heating plant, but full expensing does not apply to heating systems; confirm with your accountant. The full picture is in grants and funding.