2026 Update: PSDS & IETF closed. Full Expensing permanent. 2026 active stack still delivers 40–60% effective subsidy. See 2026 grants →

Merseyside · Heat Pumps

Commercial Heat Pump Grants in Liverpool

Air source, ground source and water source heat pumps for Liverpool businesses and public sector. Salix Finance interest-free loans, Full Expensing, and solar co-location. Free thermal survey within one week.

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Heat pump funding in Liverpool

Multiple stacking incentives apply to commercial heat pump installations in Liverpool in 2026.

Full Expensing

100% first-year tax relief

Heat pump systems qualify as plant and machinery for Full Expensing — 100% of capex deducted from corporation tax in Year 1. A £150,000 heat pump installation delivers a £37,500 tax saving at 25% corporation tax. No cap, permanent, applies to all qualifying commercial heat pump types.

Salix Finance

Interest-free loans for public sector

NHS trusts, schools, councils and universities in Liverpool can access Salix BAU interest-free loans for heat pumps. Repaid from energy savings over 5–12 years. Open-ended and accepting applications now. PSDS Phase 4 closed November 2024 but Salix BAU continues — no end date.

0% VAT

Zero VAT with renewable system

Heat pumps installed as part of a renewable energy system (e.g. alongside solar PV) qualify for 0% VAT on supply and installation. Standalone commercial heat pump VAT eligibility depends on installation context — we assess qualification case-by-case to maximise VAT recovery.

Solar Integration

Solar-powered heating at near-zero cost

A solar + heat pump system in Liverpool uses daytime PV generation to power the heat pump compressor at near-zero marginal cost. Every 1 kWh of solar produces 3.5–5 kWh of useful heat (CoP 3.5–5.0). Particularly effective in Liverpool buildings with continuous heating demand — hospitals, leisure centres, food production.

Heat pump types for Liverpool commercial buildings

Air Source (ASHP)

Most common commercial installation in Liverpool. Extracts heat from outdoor air — effective down to -15°C with modern units. Low installation disruption. No ground works required. Suited to offices, retail, warehouses and healthcare buildings.

CoP: 3.0–4.5 · Typical cost: £15–50k for commercial
Ground Source (GSHP)

Higher CoP than ASHP, particularly in winter. Requires ground loop installation — open land or borehole drilling. Suited to Liverpool sites with available land (rural fringe, business parks, hospitals). More capital-intensive but lower running costs.

CoP: 4.0–6.0 · Typical cost: £40k–£200k for commercial
High-Temperature ASHP

Delivers flow temperatures up to 75°C — compatible with existing radiator systems without full fabric upgrades. Enables direct boiler replacement in Liverpool older commercial buildings without refurbishment. Increasingly cost-competitive as grid and boiler gas prices diverge.

CoP: 2.5–3.5 · Typical cost: £20–80k for commercial
Worked example — Liverpool commercial building

250 kWp solar + 200 kW ASHP for a Liverpool office/industrial building

System costs
  • • 250 kWp rooftop solar: ~£175,000
  • • 200 kW ASHP system: ~£120,000
  • • Hot water storage (1,000L): ~£8,000
  • • Controls + integration: ~£12,000
  • Total: ~£315,000
Annual savings
  • • Gas boiler replacement (at 5p/kWh gas): ~£32,000/yr
  • • Solar-powered heat pump offset: ~£18,000/yr
  • • 0% VAT saving on install: ~£63,000 (Year 0)
  • • Full Expensing tax relief: ~£78,750 (Year 1)
  • Net cost after incentives: ~£173,250

Heat pump opportunities in Liverpool

Pharmaceutical & life sciences (Liverpool Knowledge Quarter, Eli Lilly)
Automotive (JLR Halewood plant)
Food & drink processing (Britvic Widnes, Heineken Manchester airport corridor)
Logistics (Liverpool Freeport, M62 corridor)
Higher education (UoL, LJMU, LHU)

Other clean energy services in Liverpool

Heat Pump FAQ — Liverpool

Heat pump questions from Liverpool businesses

What heat pump grants are available for Liverpool businesses?
Liverpool commercial sites qualify for Full Expensing (100% first-year tax relief), 0% VAT when installed with renewables, and Salix Finance interest-free loans for public sector bodies. PSDS Phase 4 closed November 2024 but Salix BAU loans remain fully open for NHS, councils and schools in Merseyside.
How does solar + heat pump work in Liverpool?
A solar + heat pump combination in Liverpool uses daytime PV generation to run the heat pump at near-zero marginal cost. CoP 3.5–5.0 means each kWh of solar produces 3.5–5 kWh of heat. Most effective in buildings with consistent heating demand — hospitals, leisure centres, food processing.
Are Liverpool older commercial buildings suitable for heat pumps?
Modern (post-2000) buildings work straightforwardly. Older stock may benefit from high-temperature ASHP units (up to 75°C flow temperature) for direct boiler replacement without full fabric upgrades. We assess each Liverpool building's heat demand profile and recommend the optimal heat pump type.
What is the Salix Finance route for Liverpool public sector heat pumps?
Salix BAU loans are interest-free, open-ended, and available to NHS, councils, schools and universities in Merseyside. Repaid from energy savings over 5–12 years. Projects from £50k to £3m+ are eligible. No competition — it's an open loan facility, not a grant round.
Free funding review

Free heat pump funding assessment for your Liverpool site

We scope heat pump type, size, funding route and payback from a free thermal survey. Same-week visits across ${d.region}.

No obligation. We don't charge for grant scoping.

Commercial solar funding across the UK

We work alongside a network of specialist sites covering every angle of UK commercial solar — installation, finance, sector expertise and regional delivery. If your enquiry is a closer fit elsewhere, the team will route it directly.