heatpumpsforbusinesses

Commercial heat pump FAQs

Short, self-contained answers to the questions business owners and facilities managers ask most about commercial heat pumps.

Independent information, not installer advice. Last reviewed 8 October 2026. Sources are linked in the text.

About these answers

Each answer is written to stand alone, and each links to the longer guide where there is one. Figures come from GOV.UK, Ofgem, DESNZ and HMRC, or from one named installer guide where stated. Nothing here is a quote, a design or tax advice.

Commercial heat pump questions

How much does a commercial heat pump cost?

One published installer guide (Fuse Energy, updated 8 July 2026) gives £55,000-95,000 for a 100 kW thermal air-source system and £90,000-160,000 for ground-source. These are planning bands, not quotes. See the cost guide.

Is a heat pump cheaper to run than a gas boiler?

Not automatically. Cost per kWh of heat is the energy price divided by efficiency. At DESNZ Q1 2026 medium-business averages (25.0p/kWh electricity, 4.55p/kWh gas, 88% boiler efficiency assumed) the break-even SCOP is about 4.8. Use your own tariffs in the calculator.

What is SCOP and why does it matter?

SCOP is the seasonal coefficient of performance: heat delivered divided by electricity used over a year, with rated values to BS EN 14825. A higher SCOP means lower running cost. Lower flow temperatures raise it, so ask for the design flow temperature as well as the figure.

Can a business get a Boiler Upgrade Scheme grant?

Possibly. In England and Wales the scheme covers a building used for business where the heat pump is 45 kW thermal or less for a single heat pump (70 kW thermal for a multi-unit system), you own the property and the old system is fossil-fuel or direct-electric. The grant is £7,500, or £9,000 for oil or LPG off the gas grid (21 July 2026 to 31 March 2027). See grants and funding.

Do I apply for the grant myself?

No. The MCS-certified installer applies on your behalf as the owner, and the grant is taken off the quote. Ask any installer to show the quote before and after the grant, and check their certificate on the MCS register.

Is there funding for systems above the Boiler Upgrade Scheme size limits?

No live central grant was found. The Public Sector Decarbonisation Scheme and the Industrial Energy Transformation Fund have closed, and the Green Heat Network Fund is for heat networks only. Capital allowances still apply. Check gov.uk for any new scheme.

Can I claim capital allowances on a heat pump?

Yes, but not full expensing. Heating is an integral feature, which is special-rate expenditure. The Annual Investment Allowance gives 100% relief up to £1m a year, and companies can claim a 50% first-year allowance above that. Confirm the classification with your accountant.

How much tax does a capital allowance save?

Relief multiplied by your corporation tax rate: 25% on profits over £250,000, 19% at the small profits rate, with marginal relief between. It is not a flat amount per pound spent.

Do I need planning permission for a commercial heat pump?

Do not assume you do not. The permitted-development rights for air-source heat pumps are written for dwellinghouses and blocks of flats. For commercial premises, ask the local planning authority. A noise assessment to BS 4142 is commonly requested.

How noisy is a commercial heat pump?

It depends on the unit, its fans and where it is sited. Noise is judged at the nearest sensitive neighbour, so location, screening and night-time operation matter. Ask installers for sound data and a proposed siting, and check what your planning authority expects.

Will my electricity supply cope?

Possibly not. A heat pump adds electrical load, and a connection upgrade from your distribution network operator (DNO) can add cost and lead time. Ask your DNO or independent connection provider early, before you commit to a design.

What is a hybrid heat pump system?

A heat pump paired with a retained boiler that covers peak demand. It can reduce the size of heat pump needed and avoid some emitter upgrades. See hybrid retrofit.

Can a heat pump supply hot water?

Yes, but heating water to storage temperatures needs a suitable duty: a cylinder and controls designed for it, a two-stage arrangement or a high-temperature unit. A large hot-water load is worth raising with installers at the outset.

What refrigerants do commercial heat pumps use and who can handle them?

Common refrigerants include R32, R290 (propane, which is flammable) and R744 (carbon dioxide). UK F-Gas regulation applies, and refrigerant handling must be done by suitably qualified people. Ask installers which refrigerant they propose and how it affects siting.

What does sending an enquiry do and not do?

Send your details and we reply by email. It does not give you a quote, a survey, a price or a callback time, and it commits you to nothing. Check any installer’s MCS and other credentials on the public registers before you sign.

Keep reading

Request a commercial heat pump quote

Tell us about the building. We reply by email. This site is not an installer and cannot promise when.

  • 1. You send the form. The more you know about the building and its gas use, the more useful the reply.
  • 2. We reply by email. This site is an information service and does not promise a quote or a reply time.
  • 3. You choose. Ask for MCS and other credentials, compare written quotes and check installers on the public registers (for example mcscertified.com).

By submitting you agree to our privacy policy. Your details go to the site operator, who replies by email, and are processed by Formspree (USA); see the privacy policy for how long they are kept.

Sources

Request a quote
Request a quote