Heat pumps for small and medium-sized businesses: upgrade your heating and save energy

Switching to a low-carbon heat pump will help your business improve its energy efficiency and energy rating (EPC) and reduce your environmental impact. If moving from an electric system, it could help to reduce your energy bills.

The Boiler Upgrade Scheme offers grants to help with the cost of installing a heat pump for non-domestic buildings (including commercial, voluntary and community buildings).

You might be able to get a grant for a heat pump up to a maximum capacity of 45kWth (or 300kWth for shared ground loops).

To access the grant, you’ll first need to find an installer who can check what you need and manage the Boiler Upgrade Scheme, if you choose to go ahead.

What is a heat pump?

A heat pump is a low-carbon alternative to a boiler which heats a property using electricity.

Heat pumps can provide space heating via radiators and underfloor heating and heat your hot water. They work like a fridge in reverse, taking heat from the air, ground or water (even in sub-zero weather), increasing it to a higher temperature and transferring it to your building.

There are two main types:

air source heat pumps, which take heat from the air
ground or water source heat pumps, which take heat from the ground or water

The heat pump unit is fixed on the outside of a property. When properly installed and maintained, it operates quietly with sound levels similar to a boiler.

What are the potential benefits of a heat pump?

You can benefit from heat pumps because they:

are, on average, three times more efficient than traditional gas boilers
can improve your building’s EPC score
have reduced carbon emissions, which help meet sustainability goals
have a long lifespan – typically around 15 to 20 years

Is a heat pump right for my business?

Consider a heat pump if:

your building uses direct electric heating or a fossil fuel-based heating system, for example a traditional gas boiler, oil, and LPG (liquified petroleum gas)
you have direct electric heating and you would like a more efficient system that could help to reduce your bills
you want to lower your organisation’s carbon emissions, with carbon savings of up to 70% compared to a gas boiler
you are hoping to increase the EPC score of your property
you have space outside for the system (find out more about the space you’ll need)

Heat pumps may not suit:

very large or high-heat demand premises (like manufacturing)
sites with limited outdoor space

Talk to an installer to get tailored advice.

Can I get financial help?

Through the Boiler Upgrade Scheme the government offers grants to help cover the cost of installing a heat pump.

Check if you are eligible.

What’s available?

You can get £7,500 towards an air or ground source heat pump paid directly to your installer.

You cannot get a grant for a hybrid heat pump system (for example, a combination of gas boiler and air source heat pump).

You must be fully replacing an existing fossil fuel system, for example, an oil or gas boiler, or an electric heating system such as storage or panel heaters.

Who can apply?

You can apply if you own a small or medium non-domestic building in England or Wales and your heat pump’s maximum capacity is:

45kWth for individual systems
300kWth for shared ground loops

This heat pump size should be sufficient for most small and medium size buildings. Check with an MCS certified installer if you’re not sure of your maximum capacity for a heat pump.

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