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Heat Pump Finance

Spread the cost of commercial heat pumps from £10,000 to £200,000+ with flexible finance options. HP, lease, or refinance, compare rates from 40+ lenders.

Can you finance a heat pump?

Yes, 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 £10,000 to £200,000, 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

£10k – £200k

Approval Speed

24–48 hours

BUS grants stackable

Rates From

4.5% APR

What would a 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 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 and claim RHI

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
36–84 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 £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-P500 £25,000 – £45,000 Air Source (Commercial)
Daikin Altherma 3 H HT £15,000 – £30,000 Air Source High Temp
Kensa Shoebox Ground Source £35,000 – £70,000 Ground Source
Samsung EHS Mono HT Quiet £10,000 – £20,000 Air Source Mono

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Tax benefits

Commercial heat pumps qualify for Annual Investment Allowance (AIA), letting you deduct the full cost from taxable profits in year one, up to £1,000,000. A heat pump plumbed into a building is usually an integral feature rather than moveable plant, so the allowance and the lender's appetite both differ from a machine you could unbolt and sell. Grant schemes exist and their eligibility rules change, so check the current position rather than assuming a figure.

Market context

Commercial heat pumps are bought by businesses replacing an ageing gas or oil heating system, and by developers fitting new commercial buildings where a gas connection is either unavailable or undesirable. Finance suits the purchase because an installation bundles the unit itself with groundworks, pipework and controls into one project cost, keeping cash free while the installation beds in and running costs settle. Replacement of the heat pump itself is generally driven by compressor wear after many years of continuous running rather than a fixed age, since the equipment is designed for a long service life. The used market is limited, since most units are specified for a particular building.

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

Are there government grants for heat pumps?
Yes, the Boiler Upgrade Scheme currently offers a grant of up to £7,500 towards a commercial heat pump installation, and this can usually be combined with finance rather than used as an alternative to it. Where a grant is being claimed, a lender will typically want to see the grant confirmed or well progressed before releasing funds, since it affects the net amount that needs to be financed. Structuring the deal this way means you finance the balance after the grant is deducted rather than the full installation cost, which keeps the deposit and monthly payments lower than financing the whole project from day one.
What deposit do I need?
For hire purchase, most lenders ask for a deposit of 10 to 20% of the installed cost, while finance leases and operating leases are often available with no deposit at all. Because a commercial heat pump project usually bundles the unit itself with groundworks, pipework and controls into one cost, the deposit is calculated against that whole project figure rather than just the equipment. Energy-saving equipment like this can sometimes qualify for 100% finance depending on your trading history and the lender's own criteria, so it's worth asking specifically about this when you compare quotes rather than assuming a deposit is required.
Why do heat pump finance terms run longer than for some other equipment?
Heat pump finance terms can run from 12 up to 84 months, longer than many other types of equipment, because a commercial heat pump is designed for a long service life and the compressor is the main part that eventually wears out rather than the unit becoming outdated. A longer term spreads the cost of the installation, which typically includes groundworks, pipework and controls alongside the unit itself, over a period closer to how long the system is expected to run. This is a decision to weigh against your own cash flow and how long you expect to occupy the building, rather than a fixed rule that applies to every project.
How quickly can I get heat pump finance?
Most heat pump finance applications are approved within 24 to 48 hours. Where a Boiler Upgrade Scheme grant is also being claimed, the finance element can usually proceed in parallel with the grant application rather than waiting for it to be confirmed first, since the lender can structure the agreement around the expected grant amount, and grants can typically be stacked with the finance rather than treated as an alternative to it. Larger commercial installations involving significant groundworks or a ground source system tend to take a little longer to approve within that window, simply because the lender is reviewing a bigger project with more moving parts than a single piece of equipment delivered off the shelf.
Can I finance a used or reconditioned commercial heat pump?
It's possible, but the used market for commercial heat pumps is limited, since most units are specified for a particular building's heat load and are left running until the compressor wears out after many years of continuous use rather than being upgraded early. Where a used unit is available, a lender will usually want an engineer's condition report covering the compressor and controls before agreeing finance, in the same way as for any heavy plant. Because new equipment can also qualify for grant funding through the Boiler Upgrade Scheme, most buyers financing a heat pump are specifying new equipment rather than looking at the used market.
Can groundworks and installation be included in heat pump finance?
Yes, most lenders will finance the complete installation, the heat pump unit itself along with groundworks, pipework and controls, as one agreement rather than separate finance for the equipment and the building work. This suits the way heat pump projects are usually quoted, since an installer's price nearly always covers the whole job rather than just the unit. Financing the full project cost in one facility also means the deposit and monthly payment reflect what you're actually spending, so it's worth asking your installer for a single itemised quote covering the whole scope before you apply.

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