Commercial Heat Pump
Grants UK

For public sector bodies (NHS, schools, councils, universities) — Salix BAU interest-free loans, repaid from energy savings over 5–12 years. PSDS Phase 4 closed November 2024 but Salix BAU remains open with no end date. For private sector — Full Expensing (25% CT relief in Year 1, no application) and 0% VAT for systems co-located with solar. The Low Carbon Skills Fund covers Heat Decarbonisation Plans to keep public bodies ready for any future PSDS Phase 5.

Air source heat pump installations for commercial buildings cost £25,000–£150,000+ depending on heating demand and building size. Ground source systems cost 2–3× more but deliver better efficiency in cold climates. After Full Expensing (25% CT saving in Year 1) and 0% VAT for co-located renewable systems, the effective net cost is typically 55–60% of gross capex for a profitable private sector business.

Yes — NHS trusts, schools, academies, local authorities and universities can access Salix BAU loans for commercial heat pump projects, from £50,000 to £3m+. Interest-free, repaid from documented energy savings over 5–12 years. Application via the Salix online portal — we prepare and submit the application on behalf of public sector clients.

Yes — a solar + heat pump system uses daytime PV generation to run the heat pump compressor, delivering heat at 1–2p/kWh effective cost. A COP of 3.5–5.0 means 1 kWh of solar generates 3.5–5 kWh of useful heat. Particularly effective in continuous-load buildings — hospitals, leisure centres, food production facilities and hotels. Co-located solar + heat pump qualifies for 0% VAT on the combined installation.

Typical payback for replacing oil or LPG boilers is 4–7 years. Replacing gas is harder — 7–12 years given the current gas-to-electricity price spread. Salix-funded public sector projects effectively pay back from day one, as interest-free loan repayments are sized to match modelled energy savings. Solar-powered heat pump systems typically pay back in 4–6 years overall.