Heat Pumps For Businesses: Are They Worth It?

October 18th, 2024

Last updated: December 10th, 2024

In this post, we’re exploring heat pumps for businesses and whether they are worth installing. Heat pumps are becoming an increasingly attractive option for businesses seeking greener and more efficient ways to heat (and even cool) their properties. As global demand for sustainable energy solutions rises, many companies are exploring whether heat pumps are worth the investment.

They offer a low-carbon alternative to traditional heating systems, with benefits ranging from reduced energy costs to improved environmental credentials. In some countries this is becoming one of the main ways buildings are heated.

But are heat pumps a good fit for every business? Here’s a look at the key factors to consider when evaluating heat pumps for commercial use.

What Are Heat Pumps?

Heat pumps operate by extracting energy from the air, ground, or water and converting it into heat for use in a building. There are three main types of heat pumps that businesses can install:

• Air-source heat pumps (ASHPs): These draw heat from the air outside and convert it into usable heat via a refrigerant and a heat exchanger. ASHPs can either transfer the heat into air (air-to-air) or water (air-to-water).
• Ground-source heat pumps (GSHPs): These systems use underground pipes to capture heat from the earth, transferring it into the property’s heating system through a heat exchanger.
• Water-source heat pumps: For businesses close to water sources like rivers, lakes, or ponds, these pumps extract thermal energy from the water to heat the property.

Each type of heat pump operates on the principle of moving heat rather than generating it, making them far more energy-efficient than traditional boilers that have to burn fuels. They’re also capable of cooling spaces during hotter months (this is something a lot of people worry about).

The Environmental and Financial Benefits

The primary appeal of heat pumps for businesses is their environmental impact. As companies across various sectors aim to reduce their carbon footprints and align with government targets for emissions reductions, heat pumps offer a compelling solution.

According to the Carbon Trust, switching to a heat pump could reduce a building’s carbon emissions by 55-65% compared to a standard A-rated gas boiler. If the electricity used to power the heat pump comes from renewable sources, those savings can even reach 100%.

Reducing reliance on fossil fuels isn’t just good for the environment, it’s also beneficial from a cost perspective. Heat pumps are generally more energy-efficient than gas boilers, and as energy prices continue to fluctuate, businesses using heat pumps could see significant savings, particularly if they generate some or all of their electricity on-site through solar panels or wind turbines.

Government Incentives and Support

The UK government has introduced several initiatives to make heat pump installations more affordable, reflecting the country’s push toward meeting its net-zero emissions target by 2050. One such scheme is the Boiler Upgrade Scheme, which launched in 2022. This program offers grants to help offset the cost of heat pump installations, with £5,000 available for air-source heat pumps and £6,000 for ground-source heat pumps. Some businesses are eligible.

There’s no VAT on heat pump installations until 2027, reducing the upfront cost further. These financial incentives are aimed at encouraging more businesses to switch to sustainable heating solutions, making heat pumps a more attractive option for those concerned about initial costs.

Costs and Considerations

Heat pumps are undeniably an investment, and the upfront costs can be a concern for many businesses. The installation of an air-source heat pump for small businesses typically ranges from £4,000 to £10,000 depending on the size of the building, while ground-source heat pumps tend to cost more due to the need for extensive excavation work.

Beyond installation costs it’s also important to assess whether the building is suitable for a heat pump. Heat pumps operate most efficiently in well-insulated buildings, as they work at lower temperatures than traditional gas boilers.

Another key consideration is space. Ground-source heat pumps require a substantial amount of land for the installation of underground pipework, while air-source heat pumps need an area with good airflow for the external unit. Businesses should evaluate whether their property has the necessary space to accommodate these systems.

Conclusion: Are Heat Pumps Worth It?

For many businesses, particularly those looking to reduce their environmental impact and lower long-term energy costs, heat pumps can be a sound investment. While the upfront costs can be significant, government incentives and the potential for energy savings can help offset these expenses over time.

As pressure mounts for businesses to play their part in reaching net-zero targets, heat pumps offer a practical option for reducing carbon emissions and improving energy efficiency.

Need any help or advice regarding heat pumps? We are happy to help, and also have a 24/7/365 emergency call-out service for commercial heat pump breakdowns.

Trust Robinsons Facilities Services to keep your business running. Call us today on 01423 226578 →