Ground source heat pump finance
Funding for ground source heat pump projects where boreholes or slinky collectors, headers and the plant room are bought as one commitment.
Whole-of-market — 60+ lenders searched, including
Can you finance a ground source heat pump?
Yes, though a ground source scheme is closer to a construction project than a boiler swap. A large share of the cost is drilling or excavation, and a borehole array is permanently part of the land — it has no recovery value at all. The heat pump itself is plant inside a building and slightly more tangible, but it too becomes a fixture. Funders therefore lend against the business and the land, and they will expect you to own the ground the collector sits in. Tenanted sites are difficult.
Used kit: No. Boreholes cannot be moved and used plant room equipment of this scale is not a practical second-hand market.
Get a quoteor call 07581 364281
What would a ground 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
Ground source splits the underwriting into two very unequal halves. The drilling contractor’s invoice buys holes in your land: permanent, unrecoverable and, for several equipment funders, outside what they will lend against at all. The plant room equipment — heat pump, buffers, pumps and controls — is the part that looks like an asset, although it still becomes a fixture of the building once commissioned. Ownership of the land is close to essential; a collector array under someone else’s field is not a proposition a funder will accept without extraordinary documentation. Where the scheme displaces a metered fuel cost that can be evidenced, some funders will weigh that saving in affordability alongside the accounts.
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 |
|---|---|
| NIBE S1255 ground source heat pump | Ground source heat pump with cylinder |
| NIBE F1345 cascade heat pump | Commercial ground source cascade unit |
| Vaillant geoTHERM ground source | Brine to water ground source heat pump |
| Kensa Shoebox NX | Compact British built ground source unit |
| Kensa Evo ground source heat pump | Single dwelling ground source heat pump |
| Kensa Commercial range heat pumps | Larger ground source installations |
| Rehau RAUGEO borehole collectors | Vertical borehole ground loop array |
| Uponor horizontal slinky collectors | Horizontal ground collector loops |
| Grundfos borehole pump set | Open loop aquifer pumping package |
| Borehole drilling and manifold works | Drilling, grouting and header manifold |
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Who buys one
Estates and country houses running commercial operations, schools and academy trusts on their own grounds, large glasshouse growers, rural hotels with land around them, and care operators building new premises. The trigger is frequently a new build or a major refurbishment where the heating strategy is decided at design stage, or the end of a costly oil supply arrangement on a site with no mains gas.
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.
Ground source heat pump finance questions
Can the borehole drilling be included in the finance?
Sometimes, but it is the hardest part of the quote to place. Drilling produces no recoverable asset, so several funders exclude it and lend only against the plant room equipment. We separate the contractor costs before approaching anyone so that the fundable proportion is clear from the start.
Do I need to own the land the collector runs under?
Effectively, yes. A collector array is buried permanently and cannot be relocated, so funders want certainty that the land supporting the system is yours. Arrangements over neighbouring land or short tenancies raise questions most funders would rather not answer. Get the title position clear before an installer starts pricing the drilling.
Is ground source treated differently from air source?
Yes, mainly because of the groundworks. An air source installation is largely equipment and pipework; a ground source scheme carries substantial civil works that a funder cannot recover. That pushes more of the lending decision onto your trading strength and your ownership of the site.
Do I need an abstraction licence for an open-loop system?
Open-loop systems drawing from groundwater normally require a permit from the relevant environmental regulator. It is not a finance requirement as such, but funders will want to know the consents are in place, because a system that cannot legally operate is not one they wish to have paid for.
How is a new build project handled?
Where the heat pump forms part of a construction programme, timing matters. Funders usually release money on commissioning, which can be months after the drilling rig leaves. We look at how the contractor is staging payments and match that to a funder able to work with the programme.
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.