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Air Source Heat Pump Finance

Finance commercial air source heat pumps from £8,000 to £120,000, for offices, retail, hospitality and light industrial buildings. HP, lease, or refinance, compare rates from 40+ lenders.

Can you finance a air source heat pump?

Yes, air source heat pumps are financed as a standard asset purchase, usually on hire purchase or a lease, with the machine itself acting as the security. UK prices typically run £8,000 to £120,000, and most deals are written over 12–84 months with a deposit of around 10–20%. Decisions typically take 24–48 hours. Used machines are financeable too, usually with a shorter term.

200+ UK lenders
2-minute application
No credit check to apply
FCA-regulated brokers

Typical Cost

£8k – £120k

Approval Speed

24–48 hours

Retrofit-friendly, no drilling required

Rates From

4.5% APR

What would a air source heat pump cost per month?

£30,000
10%
60 months
9%
£0

Your estimate

Indicative only. Not a quote and not an offer of finance.

Pre-filled with a typical air source heat pump price. Indicative only, not a quote.

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Finance options

Hire Purchase (HP)

Rate
From 4.9% APR
Term
12–84 months
Deposit
10–20%
Ownership
Yours at the end
Best for
Businesses wanting to own the system outright

Finance Lease

Rate
From 4.5% APR
Term
12–84 months
Deposit
None required
Ownership
Return or buy (balloon payment)
Best for
Tax-efficient, claim 100% of payments against profit

Operating Lease

Rate
From 5.2% APR
Term
24–60 months
Deposit
None required
Ownership
Return at end
Best for
Zero upfront cost for decarbonisation. Off balance sheet.

Representative example

On a purchase price of £30,000: a 10% deposit of £3,000, then 48 monthly payments of £633 at 5.9% APR representative (fixed). Total amount payable £33,384, including the deposit. The rate you are offered depends on your business and the asset.

What buyers actually specify

Guide prices for sizing a finance agreement, not quotes. Manufacturers in this market mostly price on application, so where a current UK list price could not be confirmed the row describes a specification class rather than naming a model. Your supplier quote is what the agreement is written against.

Machine or specification Guide price Type
Daikin Altherma 3 H HT £15,000 – £30,000 Air Source High Temp
Vaillant aroTHERM plus (Commercial Cascade) £18,000 – £32,000 Air Source Cascade System
Mitsubishi Ecodan CAHV-P500 £25,000 – £45,000 Air Source (Commercial)
NIBE S2125 Commercial Cascade £30,000 – £55,000 Multi-Unit Commercial Cascade

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Tax benefits

Commercial air source heat pumps generally qualify as plant and machinery for capital allowances, so a business can typically set some or all of the cost against taxable profits through the Annual Investment Allowance or other first-year reliefs, subject to your total qualifying spend for the year. Any specific grant funding available for commercial heat decarbonisation changes from time to time, so check current eligibility with your installer or gov.uk before assuming a figure.

Market context

The typical buyer is a business replacing an ageing gas or oil boiler at end of life, or one under pressure, from a landlord, planning condition or its own net-zero commitment, to move away from fossil fuel heating. Air source systems suit most building types and are generally quicker and less disruptive to install than ground source, since they don't need drilling or trenching, which is often the deciding factor for retrofit projects on constrained sites. Running cost savings versus gas depend heavily on the building's insulation, the heat pump's efficiency at your specific flow temperature, and your electricity versus gas unit rates, so they're worth modelling site by site with an installer rather than assumed from a generic figure.

Bad credit?

Several of our 200+ lenders specialise in businesses with imperfect credit histories. You may need a larger deposit or personal guarantee, but options exist. Checking your options here does not affect your credit score, because we do not run a credit search to match you. A lender will run their own checks only if you decide to apply.

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Frequently asked questions

Is an air source heat pump always cheaper to run than a gas boiler?
Not always, it depends on your electricity-to-gas price ratio and how efficiently the system runs at your building's required flow temperature. A well-specified system in a reasonably insulated building often runs at lower cost than gas, but a poorly sized system in a draughty building can cost more to run than expected. Ask your installer to model running costs for your specific building and current tariffs rather than relying on a general rule of thumb.
Can an air source heat pump replace my existing boiler directly?
Often yes, but it depends on your current radiators, pipework and required flow temperature; older systems designed for high-temperature gas boilers sometimes need larger radiators or underfloor heating to work well with a heat pump's lower flow temperature. A proper heat loss survey before ordering will tell you whether your building needs any changes alongside the heat pump itself, and that survey cost can usually be included in the same finance agreement.
Are there grants available for commercial heat pumps?
Grant schemes for commercial heat decarbonisation exist from time to time but change in scope, eligibility and value, so we'd rather point you to gov.uk or your installer for the current position than quote a figure that may be out of date by the time you read this. We can still help structure finance around whatever funding you're eligible for once you've confirmed it.
What deposit is needed for air source heat pump finance?
For hire purchase, most lenders ask for 10–20% deposit. Finance leases and operating leases often require no deposit, and heat pumps, as energy-saving equipment, sometimes qualify for enhanced finance terms from specific lenders, which is worth checking when comparing quotes. The exact figure a lender offers often reflects your trading history and credit profile as much as the equipment itself, so a strong set of accounts can sometimes bring it down further, and it's worth comparing terms from more than one lender rather than accepting the first quote.
How quickly can I get air source heat pump finance?
Most applications are approved within 24 to 48 hours once accounts and a supplier quote are provided. For deals under roughly £50,000, same-day approval is common, particularly where the heat loss survey and specification are already finalised before the finance application is submitted. In practice, the businesses that get the fastest decisions are the ones who apply with a complete picture already in place: recent accounts, a clear supplier quote and a short note on how the equipment will be used.

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