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Heat Pump Finance

You've been quoted for a heat pump installation. Let's find the right way to fund it. 


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Heat Pumps Are a Sound Commercial Decision

If you've had a heat pump survey and proposal, you already know the case for switching. Lower carbon emissions, reduced exposure to gas price volatility, and a heating system that aligns with where building regulations are heading.

Commercial heat pump installations are a significant investment, but they're also one of the clearest long-term plays a business can make on its building infrastructure. 

The technology is mature, the supply chain is established, and the operational savings are well documented.

The Funding ChallengeWe Understand Heat Pump ProjectsPart of a Bigger Picture?Get Your Heat Pump Project Funded

The Funding Challenge

Heat pump projects tend to be larger capital items than some other energy efficiency measures. A commercial installation might run from £50,000 to well over £500,000 depending on building size and complexity. That's a meaningful amount of capital to commit upfront, even when the long-term economics are clear.

Businesses often find themselves in a position where the project is technically approved and the installer is ready to go, but the funding conversation hasn't been resolved. 

The project waits.

We Understand Heat Pump Projects

We're not learning about heat pumps from your proposal, we already understand how they work commercially. Ground source vs air source, coefficient of performance, seasonal efficiency, integration with existing heating systems, we speak the language.

This means when we present your project to lenders, we can frame it properly. Not just "this business wants to borrow £200,000 for equipment" but "this project delivers measurable operational savings and aligns with regulatory direction."

We work with lenders who understand energy infrastructure projects and can assess them on their commercial logic rather than just the upfront cost.

Part of a Bigger Picture?

Some heat pump projects sit within a wider building improvement programme, perhaps alongside insulation upgrades, solar installations or building management system improvements. If that's your situation, it may make sense to look at the whole programme together rather than funding each element separately.

But if the heat pump is a standalone project, that's perfectly fine. 

We'll work with whatever your installer has proposed.

Get Your Heat Pump Project Funded

If you've got a proposal from an installer and you'd like to explore funding options, we're here to help. 

No pressure to expand the scope, no jargon, and no interference with your installer's specification.

Discuss Your Project →

Frequently asked questions


Commercial heat pump projects vary significantly depending on building size, heating demand, and system complexity. Typical projects range from £50,000 for smaller commercial buildings up to £500,000+ for large industrial or multi-zone installations. Your installer's quote will reflect the specific requirements of your building.

Air source heat pumps (ASHP) are generally less expensive to install and require less external space, making them suitable for most commercial buildings. Ground source heat pumps (GSHP) are more efficient but require significant groundwork (boreholes or trenches). Your installer will have recommended the appropriate type based on your site conditions and heating demand.

Grant availability changes regularly. The Boiler Upgrade Scheme covers domestic properties but not commercial installations. However, some industrial decarbonisation funds and local authority schemes may apply depending on your sector and location. We can discuss what's currently available, but our primary role is structuring commercial finance rather than grant applications.

Payback depends on what you're replacing (gas, oil, electric heating), your building's heat demand, and the system's coefficient of performance. Projects replacing oil heating or older electric systems tend to pay back faster. Your installer's proposal should include projected running cost comparisons - that's what we use to build the commercial case for lenders.

Yes. The finance can cover the complete project scope as quoted by your installer - including the heat pump units, distribution systems, controls, groundworks (for ground source), and any associated building modifications. It's one project, one finance facility.

Many commercial heat pump installations require an electrical supply upgrade, particularly when replacing gas heating. If your installer has included this in their quote, it can be covered within the same finance facility. 

If it's not in the quote, it's worth asking them about it before we start the funding conversation.

Heat pumps work most efficiently in well-insulated buildings, but they can be designed to work in older properties - often by using higher-temperature heat pump systems or by combining the installation with insulation improvements. 

Your installer will have assessed this as part of their survey. If they've quoted for it, they're confident it will work.

Yes. Heat pump projects often make more commercial sense when combined with insulation upgrades or other building improvements that reduce the overall heating demand. If your installer or consultant has recommended a package of works, these can typically be structured within one finance facility.

This is primarily a question for your installer - most reputable installers provide performance guarantees or warranties covering system output. From a finance perspective, the repayments are fixed regardless of performance, which is why it's important that your installer's projections are realistic and well-founded.

The finance itself isn't affected by building status, that's a planning and installation question. If your installer has confirmed that the installation is feasible within planning constraints, we can explore funding in the normal way. 

Air source units in conservation areas may need planning permission that wouldn't be required elsewhere.

Your installer's proposal (including projected running costs compared to your current system), recent company accounts, and basic business details. We'll have an initial conversation first to understand the project before asking for any paperwork.

No. We don't specify equipment, recommend system types, or suggest changes to your installer's proposal. They've done the technical work - we find the right funding structure to get it delivered.

Discuss a Heat Pump Project

If your project has technical approval but is struggling to secure financial approval, Locataire Capital can help you explore possible funding structures for energy efficiency and transition projects.

Discuss Your Project