How much does a commercial heat pump cost?
Real UK costs by heat-pump type and size, what actually drives the price, and the capital allowances and funding that change the net figure. Updated for 2026.
A heat pump is capital plant, not a running cost, so the sticker price is only half the picture — the net cost after tax relief and any grant is what belongs in the business case. The honest range is wide because no two buildings are the same: the same 200 kW output costs very differently in a building whose emitters already run cool than in one that needs a re-emittering programme and a DNO supply upgrade. We model the full installed cost, the tax position and the running-cost saving on a real SCOP before you commit.
Cost ranges by heat-pump type
Air-Source Heat Pump Installation
- Typical heat output
- 40-500 kW thermal
- Project value
- £60,000-£600,000
- Payback
- 8 years
Ground-Source Heat Pump Installation
- Typical heat output
- 50-1,000 kW thermal
- Project value
- £150,000-£2,000,000+
- Payback
- 11 years
Hybrid & Boiler-Replacement Installation
- Typical heat output
- 60-400 kW heat pump + retained or new peaking boiler
- Project value
- £70,000-£500,000
- Payback
- 7 years
High-Temperature & Process Heat Pump Installation
- Typical heat output
- 100 kW-2 MW+ thermal
- Project value
- £200,000-£3,000,000+
- Payback
- 9 years
Water-Source Heat Pump Installation
- Typical heat output
- 100 kW-5 MW+ thermal
- Project value
- £300,000-£5,000,000+
- Payback
- 12 years
Heat Network & Energy Centre Installation
- Typical heat output
- 500 kW-10 MW+ thermal
- Project value
- £1,000,000-£20,000,000+
- Payback
- 14 years
What drives the price
| Cost driver | Cheaper when… | More expensive when… |
|---|---|---|
| Emitters | Already run at 50-55 °C | Need widespread upgrades |
| Heat source | Air-source, no ground works | Ground or water-source (drilling, permits) |
| Electrical supply | Spare capacity available | DNO supply upgrade required |
| Siting | Simple compound, permitted development | Acoustic screening, listed-building consent |
The hidden costs people miss are the emitter upgrades, the DNO supply contribution and any acoustic or planning work — all of which we cost up front from the survey, so the fixed-price proposal holds.
Capital allowances and funding
A commercial heat pump is plant and machinery, and commonly an integral feature of the building, so it attracts the Annual Investment Allowance — 100% relief on up to £1m of qualifying spend a year (special-rate pool). On a £250,000 install that is up to £62,500 of first-year corporation-tax relief at 25%. Public bodies can pursue the Public Sector Decarbonisation Scheme, eligible industry the Industrial Energy Transformation Fund, and multi-building schemes the Green Heat Network Fund. There is no commercial version of the £7,500 Boiler Upgrade Scheme, and the 0% VAT relief is residential and charitable only. See capital allowances and grants and funding for the detail, and read whether it is worth it.
Get a fixed-price heat pump quote
Responds within one working day
- 1. Free desk feasibility from your meter data and roof, no obligation.
- 2. Site survey and a fixed-price proposal, itemised in writing.
- 3. Install and aftercare by MCS-certified engineers.
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- NICEIC
- RECC
- TrustMark
Cost questions
How much does a commercial heat pump installation cost?
It depends on technology and scale. Air-source typically runs £60,000-£600,000; ground-source £150,000-£2m+ because of the ground works; hybrid boiler-replacement £70,000-£500,000; water-source and heat-network schemes higher again. Cost is driven by the peak heat load, the emitter upgrades required, external-plant siting, and any electrical supply upgrade. We model the full installed cost from the heat-loss survey before you commit, no blind quotes.