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What are commercial heat pumps for business?

Commercial heat pumps take natural thermal energy from the air, ground, or water and turn it into heat that can be used for hot water and heating systems. They are an alternative to the traditional gas boilers that are currently used to heat business properties up and down the country.

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But how exactly do heat pumps work? And can they save you money? This Bionic guide will answer these and any other questions you might have about heat pumps for business.

Five-point summary

• Commercial heat pumps use energy from air, ground, or water to provide heating and hot water for businesses. Unlike gas boilers, heat pumps don’t burn fuel, making them more environmentally friendly.
• Heat pumps can lower carbon emissions, reduce energy and maintenance costs, offer cooling in summer, and eliminate the risk of carbon monoxide leaks.
• Upfront costs range from £3,000 to £50,000 depending on the system. Installation may involve significant structural work and isn’t suitable for all properties.
• Heat pumps are far more efficient than gas boilers—up to 400%—which can lead to significant energy savings over time, especially when paired with solar panels.
• While there are no specific grants for heat pumps, businesses may benefit from tax relief through Full Expensing or the 50% First Year Allowance. Other energy efficiency grants may also apply.

How does a commercial heat pump work?

Heat pumps work by transferring heat from one place to another, rather than burning fuel to generate heat. There are three main types of heat pumps available to businesses:

• Air source heat pumps – A commercial air source heat pump works by transferring heat from the air into a fluid. This fluid passes through a heat exchanger to warm up hot water cylinders for taps and showers, as well radiators and other heating systems.
• Ground source heat pumps – Ground source heat pumps for commercial buildings work by circulating a mixture of water and antifreeze through a loop of piping buried outside your business premises. The heat from the ground is then absorbed into the fluid before being passed through a heat exchanger into the heat pump
• Water source heat pumps – If your business is based near a large area of water, a water source heat pump can be used to extract energy from it. There are two types of water source heat pumps:
  • Open-loop system – Suitable for ponds and wells, water is pushed through the pump to extract heat for your system before releasing it back to its source.
  • Closed-loop system – Suitable for water that’s at least eight-foot deep, this system places sealed pipes filled with antifreeze below the surface. As the antifreeze flows through the pipes, it is heated by the water body and returns to the heat pump.

What are the benefits of a commercial heat pump?

There are a number of business benefits that come with installing a commercial heat pump, including:

• Cut your carbon footprint and enhance your green credentials. Heat pumps are considered to be a more environmentally friendly option as they generate less CO2.
• Lower your business energy bills. Instead of burning fossil fuels and having your heating bills dictated by the cost of business gas, you’ll only pay for the electricity you use to run the heat pump.
• Lower maintenance costs. Heat pumps cost a lot less to maintain than gas boilers, so you could save money on service and maintenance costs. Heat pumps also have a longer life span than gas boilers.
• It can be used as a cooling system. Unlike gas boilers, which can only be used to heat buildings and water, heat pumps can be switched to a cooling system in warmer weather.
• A safer way to heat. Heat pumps don’t rely on gas to function, which means there’s no chance of a carbon monoxide leak at your premises.

So far, so good. But heat pumps aren’t without their drawbacks.

What are the problems with heat pumps for business?

Although the benefits probably outweigh the drawbacks, it’s worth keeping in mind the following issues with commercial heat pumps:

• High up-front cost. Depending upon the type of system you install, heat pumps can cost anything from £4,000 to £35,000. This is significantly more than a gas boiler.
• Commercial heat pumps can be difficult to install and might not be suitable for all types of business premises.
• Depending upon the system you install, you might find your heat pump isn’t as efficient in cold weather

How much does it cost to install a commercial heat pump?

The cost of heat pump installation will depend on the type of system you need and the type of property you have.

• Ground source heat pumps can cost from £18,000 to £50,000, according to Checkatrade. This is because ground source heat pumps are the most expensive systems and have the highest installation costs as they need pipes to be fitted underground. This means there will be digging and construction work at your property.
• Air source heat pump installation costs from £3,000 to £15,000, according to Checkatrade. Although significantly cheaper, the cost will depend on whether you need a monobloc system that sits outside your building or a split system that has a unit inside and outside.
• A water source heat pump should cost between £5,000 and £18,000 to install, according to Greenmatch.co.uk. But remember, you’ll need to be situated close to a suitable body of water to use this type of heat pump.

Will a heat pump help your business save money?

Although they have a high up-front cost, heat pumps are around four or five times more efficient than gas boilers. For example, while an old gas boiler has an efficiency rating of around 60%, a new condensing boiler has an efficiency rating of up to 92%. But even this is dwarfed by the efficiency rate of about 400% offered by heat pumps.

If you’re wondering how a heat pump can be more than 100% efficient, it’s because they transfer heat instead of producing it. This means the efficiency in terms of heat output is greater than 100%.

This means installing a heat pump will help your business save money by lowering its energy bills.

"Heat pumps cost a lot less to maintain than gas boilers, requiring services less often, so you could save money on service and maintenance costs. Heat pumps also have a longer lifespan than gas boilers (predicted to be 20-30 years) and usually come with a 2-3 year warranty." - Ed Whitworth, Head of Energy Performance.

If you combine a heat pump with solar panels, you can make your business premises almost completely self-sufficient through self-generated energy.

Are any government grants available for heat pumps?

Although there are currently no business grants available to cover the cost of commercial heat pumps, your business might qualify for Full Expensing. This provides 100% relief on expenditure by companies on qualifying plant and machinery additions in the main pool or a 50% First Year Allowance for special rate pool additions. For more information, go to the government's Energy Technology List (ETL) website..

You can also check the Ofgem website for more business energy efficiency grants and schemes, as you may be able to get a reduction in green taxes.

How to get a heat pump for your business

If you’re interested in getting a heat pump installed at your premises, it’s worth getting in touch with your business energy supplier to see if they have engineers who can deal with the installation.

Get a quote for business energy

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5 Reasons to Choose Ductless Mini-Split Heating And Cooling Systems 

Most people have heard of mini-split heat pumps and ductless mini-split heating and cooling systems. You may have seen the small, indoor devices installed high on walls in homes, restaurants or office buildings. But what do you really know about min-split systems? 

1. Mini-Split Systems Are Highly Flexible Solutions

Whereas traditional heat pumps and central air conditioning systems force cooled and heated air through ducts, mini-split heat pumps deliver air directly into different zones. Mini-split heating and cooling systems are comprised of a small outdoor unit and one or more indoor units that require nothing more than mounting capabilities and access to electricity.

Ductless mini-split systems offer home and business owners a cost-effective way to replace inefficient window air conditioning units, space heaters and electric baseboard heaters. They can be installed in home additions, new construction, condominiums and apartments, or to improve temperature control in specific rooms. Ductless mini-split systems can even be fit for buildings that currently use ducted forced-air systems.

2. Ductless Can Save You Money

One of the biggest reasons homeowners switch to ductless mini splits for their heating and cooling needs is the overall cost savings. In recent years, utility costs across the country have skyrocketed. When a home’s temperature depends upon an inefficient system, monthly bills can quickly climb out of control. Mini-split heating and air conditioning systems operate on less power – they are smaller than traditional forced-air systems, and because the temperature-controlled air is delivered directly into a room, there is no loss in efficiency.

Ductless mini-split systems also allow homeowners to create “zones” in their home, which means they no longer have to cool or heat rooms that aren’t occupied.

In addition to saving money on utilities, homeowners may also be eligible for tax credits or utility rebates for the year they install a ductless air conditioning and heating system. There are many programs at the federal, state and local level that allow homeowners and businesses to take advantage of these additional savings.

3. Breathe Happier with a Mini-Split – They Improve Indoor Air Quality

Often, the quality of indoor air can actually be lower than the quality of outdoor air. With traditional HVAC systems, air ducts must be professionally cleaned on a regular basis, and even after cleaning, dust and allergens are left behind. Ductless air conditioning and heating systems, on the other hand, offer multi-stage filtration that can drastically reduce dust, bacteria, pollen, allergens and other particulates in the air. Plus, Mitsubishi Electric mini-split units have washable filters you can clean and replace regularly.

4. Mini-Split Systems Are Quick and Easy to Install

Installing a traditional, ducted system can take several weeks and disrupts daily activities in the home. Ductless systems are far less invasive to install, and depending upon the number of indoor and outdoor units required, can be up and running in as little as one day.

Mini-split systems run on small pipes that require a mere three-inch hole. That means homeowners don’t have to worry about rebuilding walls or ceilings around ductwork and there is no loss of precious square footage.

5. Ductless Air Conditioning Lowers Your Carbon Footprint

The small size of a ductless mini-split heat pump and its zoning capabilities allows for greater energy efficiency. Mini-split heating and air conditioning systems follow Energy Star guidelines, which means they are far more energy efficient than the minimum standards set forth by the U.S. federal government. Improved efficiency saves money, of course, but it also helps reduce your total carbon output.

Additionally, ductless mini-split systems take advantage of advances in chemistry to reduce effects on the environment. Ductless systems use a refrigerant called R410A, which is known for its zero- ozone depletion potential. This means the system will have less impact on the environment throughout its lifecycle.

Ductless mini-split systems are energy efficient air conditioning and heating options, environmentally friendly and completely customizable. They offer homeowners the ability to cool and heat specific zones of their home to the exact temperature they desire, providing consistent and exceptional year-round comfort.

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