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Commercial Heat Pump Finance

Spread the cost of a commercial heat pump from £15,000 to £150,000 with flexible finance options. HP, lease, or refinance, compare rates from 40+ lenders.

Can you finance a commercial heat pump?

Yes, commercial 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 £15,000 to £150,000, and most deals are written over 36–84 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
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Typical Cost

£15k – £150k

Approval Speed

24–48 hours

3–5 days for large multi-unit projects

Rates From

6.0% APR

What would a commercial heat pump cost per month?

£45,000
10%
60 months
9%
£0

Your estimate

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

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

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Finance options

Hire Purchase (HP)

Rate
From 6.5% APR
Term
36–84 months
Deposit
10–20%
Ownership
Yours at the end
Best for
Businesses wanting to own the heat pump outright

Finance Lease

Rate
From 6.0% APR
Term
36–84 months
Deposit
None required
Ownership
Return or buy (balloon payment)
Best for
Keeping capital free while the heat pump is treated as plant rather than a building fixture

Operating Lease

Rate
From 7.0% APR
Term
48–84 months
Deposit
None required
Ownership
Return at end
Best for
Landlords and operators who'd rather not carry the asset on their balance sheet

Representative example

On a purchase price of £45,000: a 10% deposit of £4,500, then 48 monthly payments of £949 at 5.9% APR representative (fixed). Total amount payable £50,052, 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
Mitsubishi Ecodan CAHV commercial air source heat pump £20,000 – £45,000 (indicative, confirm current price with a Mitsubishi Electric dealer) Commercial Air Source Heat Pump
Mitsubishi Ecodan QAHV high-temperature heat pump £30,000 – £60,000 (indicative, confirm current price with a Mitsubishi Electric dealer) High-Temperature Heat Pump
Small commercial ASHP for an office or retail unit (specification class) £15,000 – £30,000 Small Commercial ASHP
Multi-unit ground source heat pump array for a larger building (specification class) £70,000 – £150,000 Ground Source Heat Pump Array

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Tax benefits

How a commercial heat pump is taxed and financed depends heavily on how it's installed. A heat pump plumbed into a building's heating system, with pipework, controls and often internal fan coil units built into the fabric of the building, is generally treated as a fixture rather than free-standing plant, which changes the capital allowances position (fixtures of this kind typically sit in the special rate pool rather than qualifying in full the way genuinely moveable equipment does) and can also affect whether an asset finance lender is willing to lend against the unit alone, since it can't easily be removed and resold if a deal goes wrong. This is worth confirming with your accountant and lender before signing, particularly on a large installation with extensive internal pipework.

Market context

Commercial heat pumps are bought by businesses replacing an ageing gas boiler, by new-build commercial developments designing heating in from the start, and by landlords and operators responding to tightening minimum energy efficiency standards on commercial buildings. Because a heat pump installation usually involves significant pipework, controls and sometimes underfloor heating or fan coil units built into the building, most buyers finance the whole installed system rather than the heat pump unit alone, and the fixture question above is central to how that finance is structured. Replacement is generally driven by an existing boiler or heat pump reaching the end of its working life or a landlord needing to meet a compliance deadline, rather than a straightforward like-for-like swap, since a heat pump installation is a more involved project than fitting a new boiler.

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

Does it matter whether the heat pump is a fixture or free-standing?
Yes, and it's worth establishing early. A heat pump plumbed into a building's fixed heating system is normally treated as a fixture, which affects both the capital allowances you can claim and how comfortable an asset lender is lending against the unit, since fixtures are harder to repossess and resell than portable equipment. A smaller, self-contained unit serving a single space is more straightforward. Confirm which basis applies with your accountant and lender before committing.
Can the whole installation, not just the heat pump unit, be financed?
Yes, most lenders will finance pipework, controls, internal units and installation labour alongside the heat pump itself if they're all shown on the supplier's invoice, which is the normal way a commercial heat pump project is financed rather than funding the outdoor unit separately from the rest of the system.
Is a ground source heat pump financed differently from air source?
The finance products are the same, HP, finance lease or operating lease, but ground source systems cost considerably more due to the ground loop or borehole work involved, and that groundwork is even more clearly a building fixture than the heat pump unit itself, so the fixture question matters even more on a ground source project.
What deposit is typical for a commercial heat pump?
Hire purchase deposits typically run 10% to 20%. A larger deposit will reduce the monthly payment, which is worth considering on bigger installations given the overall project cost, and landlords financing heat pumps to meet compliance deadlines sometimes negotiate a lower deposit against a strong portfolio track record.
How quickly can commercial heat pump finance be arranged?
Straightforward installations are typically approved within 24 to 48 hours once a supplier quote and installation plan are available. Larger multi-unit or ground source projects, particularly where the fixture question needs resolving with the lender, can take several working days longer.

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