Air source heat pump finance
Funding for commercial air source heat pumps, covering the outdoor units, cylinders and the pipework and emitter changes that come with them.
Whole-of-market — 60+ lenders searched, including
Can you finance an air source heat pump?
Yes, with a caveat worth understanding. An air source heat pump is fundable, but once the indoor unit, cylinder, buffer and pipework are installed the system becomes part of the building — a fixture that cannot practically be lifted out and resold. Recovery value is therefore weak, and funders underwrite the business and the property position instead. Owning the premises gives you the widest choice. Tenants can still be funded where enough lease term remains and the landlord signs a waiver. The outdoor unit alone is the only readily removable part.
Used kit: Rarely. Removed heat pumps carry unknown compressor hours and lapsed warranties, so second-hand units are seldom accepted on their own.
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What would an air source heat pump cost per month?
Business asset finance is quoted on a flat rate, so that is what this shows — with the equivalent APR underneath, because the two are not the same number. A quick guide only; your actual rate depends on the asset, term, deposit and lender.
Representative example: on Hire Purchase, borrowing £25,000 over 48 months at a 6.0% flat rate (equivalent to 11.5% APR representative), you would repay around £646 a month; total amount repayable approximately £31,000, of which £6,000 is the cost of finance. This calculator is for illustration only — it is not a quote or an offer of finance, and the rate and repayments you are offered will depend on the asset, term, deposit and your circumstances. CW Asset Finance is a credit broker, not a lender, and may receive a commission from the lender that funds your agreement. All finance is subject to status, affordability and lender approval. CW Asset Finance is an Appointed Representative of Rural Finance Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 630701).
How lenders treat it
Heat pumps are the clearest example of the fixture problem. The moment an installer has run the pipework, fitted the cylinder and swapped the radiators, you are looking at building services rather than equipment, and no funder is realistically going to send someone to strip a heating system out of an occupied building. Underwriting consequently rests on the trading business, on whether you own the freehold, and on the unexpired lease term where you do not. Short leases are a genuine obstacle, because a heating system installed for decades of service sits oddly against a few years of occupation. A landlord waiver is usually required, and landlords who are themselves planning works sometimes refuse it.
Makes and models we fund
Examples of the machines we are asked to fund. This is not an exhaustive list — if what you are buying is not here, it does not mean we cannot fund it. Your supplier quote is what the agreement is written against.
| Machine | What it is |
|---|---|
| Mitsubishi Ecodan R32 monobloc | Air source heat pump for heating and hot water |
| Mitsubishi Ecodan cascade system | Multiple heat pumps in cascade |
| Daikin Altherma 3 H HT | High temperature air source heat pump |
| Daikin Altherma 3 M monobloc | Compact monobloc heat pump |
| NIBE F2120 air source heat pump | Inverter driven outdoor heat pump |
| NIBE S2125 heat pump | Smart controlled air source unit |
| Vaillant aroTHERM plus | Natural refrigerant air source heat pump |
| Samsung EHS Mono HT Quiet | High temperature monobloc heat pump |
| Vaillant uniTOWER cylinder package | Integrated cylinder and controls |
| Mitsubishi Ecodan pre-plumbed cylinder | Hot water cylinder and hydrobox |
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Who buys one
Care homes and nurseries replacing tired oil or gas boilers, village halls and community buildings under pressure to decarbonise, holiday lets and small hotels improving energy ratings, veterinary practices and small manufacturers. The usual trigger is a boiler failure or an EPC requirement attached to letting or refinancing the property. Many buyers have already had a heat loss survey done and simply need the installed cost spreading.
Get a quoteor call 07581 364281
How it is treated for tax
Bought on hire purchase, business plant and machinery normally qualifies for capital allowances on the full cost even though you pay for it monthly, which is a large part of why hire purchase is the common structure. On a finance lease you generally set the rentals against profit instead. The rules change between budgets and your position depends on how you trade, so treat this as the direction of travel and get your accountant to confirm the detail before you commit.
Air source heat pump finance questions
Why is a heat pump harder to finance than a digger?
Because a digger can be driven onto a lorry and sold. A heat pump becomes part of the building the moment the pipework goes in, so there is nothing meaningful to recover. Funders respond by looking much harder at the business and at whether you own the property.
Can a landlord finance heat pumps across a rental portfolio?
Yes, and it is a common application. Where you own the properties you are installing into, the fixture problem is less troublesome because you are improving your own asset. Funders will want to understand the portfolio, the rental income supporting it and how many installations are planned in one programme.
Does the radiator and pipework upgrade get funded too?
Usually it has to be, because a heat pump running into undersized emitters does not work properly. Funders generally accept the installed system as a whole from one contractor invoice. Where a separate builder is doing associated work, that portion may need to be handled differently.
Will the funder ask for an energy performance survey?
Not routinely, but a heat loss calculation or system design from the installer helps the case, particularly where you are arguing that running costs will improve. Funders are not engineers, yet a properly specified job reads as a lower risk than a vague quotation with no design behind it.
What if I only have a few years left on my lease?
Say so at the outset. A short unexpired term is one of the most common reasons heat pump applications are declined, because the asset outlives the occupation. Options narrow, but they do not always vanish — a strong balance sheet and a supportive landlord can still make a case work.
Get a quoteor call 07581 364281
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Not an offer of finance. All finance is subject to status, affordability and lender approval.
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Tell us what you’re looking to fund and Conor will come back to you personally — usually the same day.
Prefer to talk? Call 07581 364281 · serving Leeds, York, Harrogate, Wakefield, Selby, Tadcaster & across North & West Yorkshire.