Commercial Heat Pump
Grants UK
Air source, ground source and high-temperature heat pumps for UK commercial and public sector buildings. Salix Finance interest-free loans for NHS, schools and councils. The Annual Investment Allowance for private sector. Solar-powered heat at 1–2p/kWh effective cost.
How grants apply to heat pumps
Free thermal survey
We survey the building fabric, current heating system, hot water demand and flow temperature requirements. This determines whether air source, ground source or high-temperature HP suits your site.
Salix or the Annual Investment Allowance path
Public sector bodies take the Salix BAU loan route — we prepare the funding application. Private sector takes the Annual Investment Allowance — 25% CT relief in Year 1 with no application required.
Solar integration option
For buildings with heating demand during solar generation hours, we design a combined solar + heat pump system to deliver heat at 1–2p/kWh effective cost.
Heat pump funding routes
100% first-year CT relief
Commercial heat pump systems qualify as plant and machinery for the Annual Investment Allowance. 100% of capex deducted from corporation tax in Year 1. On a £150k ASHP installation: £37,500 CT relief at 25%. Permanent, no cap, applies to air source, ground source and high-temperature heat pumps.
Interest-free public sector loans
NHS trusts, schools, councils and universities access Salix BAU loans for heat pumps. Interest-free, repaid from energy savings over 5–12 years. Open-ended. PSDS Phase 4 closed November 2024 but Salix BAU remains live with no end date. Projects from £50k to £3m+.
Solar-powered heat at near-zero cost
A solar + heat pump system uses daytime PV generation to run the heat pump compressor. CoP 3.5–5.0 means 1 kWh solar generates 3.5–5 kWh of useful heat. Particularly effective in buildings with continuous heating demand — hospitals, leisure centres, food production, hospitality.
Zero VAT with renewable system
Heat pumps installed as part of a renewable energy system (co-located with solar) qualify for 0% VAT on the combined installation. Saving 20% on combined contractor invoices reduces the gross capex of a solar + heat pump project significantly.
Heat pumps by location
Local Salix routes, building stock assessment and DNO connection info for your city:
Commercial heat pump grant FAQs
What heat pump grants are available for commercial buildings in the UK?
How much does a commercial heat pump cost in the UK?
Do commercial heat pumps qualify for Salix Finance?
Can a commercial heat pump be powered by solar PV?
What is the payback period for a commercial heat pump?
Free commercial heat pump survey
We assess heat demand, building fabric, DNO connection and full funding route. Thermal survey within one week, proposal in 24 hours.
No obligation. We don't charge for grant scoping.
Funding by asset class
The allowance depends on the asset, and most pages on this topic get it the wrong way round. Solar PV is special-rate expenditure (HMRC Capital Allowances Manual CA22335), so the 100% year-one route is the Annual Investment Allowance — Full Expensing is a main-rate measure and does not reach it. Battery storage, EV charging and heat pumps are main-rate plant, so Full Expensing genuinely does apply to those.
- heat pump capex for commercial buildings
Main-rate plant, so Full Expensing does apply here.
- commercial battery storage costs and ROI
Main-rate plant. Stacks with solar for self-consumption.
- what commercial solar costs per kWp
Capex bands per kWp before any relief.
- rooftop solar on industrial premises
Large roofs, high daytime load — the strongest case.
- the Annual Investment Allowance explained for solar
Solar is special-rate, so AIA is the 100% year-one route.
Find out which 2026 schemes your site actually qualifies for
- 1. A short written funding note naming every scheme your site qualifies for in 2026 — and the ones it does not.
- 2. Indicative system size and a capex band for your roof.
- 3. Year-one tax treatment per asset in £ — solar is special-rate expenditure, so the route is the Annual Investment Allowance; battery storage and heat pumps are main-rate plant, where Full Expensing does apply. Most pages get this the wrong way round.
- 4. Projected SEG export revenue at current rates.
- 5. Any red-flag eligibility or DNO issues we can see up front.
Covers solar PV, battery storage, EV charging and commercial heat pumps — separately or as one bundled project. If your project is a heat pump or a battery rather than a roof, say so in the message box and the note is written against that asset instead.
- · We do not pass your details to multiple installers.
- · We do not run a lead auction, and we never ask for your phone number.
- · No marketing lists, no unsolicited calls.
- · We are an independent funding consultancy — not an installer, and we take no installer commission.