What You Need to Know About Commercial Heat Pumps

The necessity of minimizing carbon emissions is an imperative challenge that every business faces, driven by governmental regulations and customer expectations.

Simultaneously, the national agenda targeting carbon emissions reduction to net zero is gaining traction, complete with definitive guidelines outlining upcoming transformations over the next several years, including the decarbonisation of heating solutions for businesses and homes.

This drastic shift necessitates the replacement of fossil fuel-based gas boilers with cleaner, greener heating solutions, with heat pumps frequently cited as a favored technology among government recommendations.

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Transitioning to heat pumps enables businesses to effectively manage their energy consumption amidst rising costs—a critical concern, as energy prices have more than doubled over the last decade with projections of continued significant increases over the forthcoming years.

ESG Advantages

Implementing heat pumps significantly decreases a firm's carbon footprint while delivering tangible efficiencies that enhance Environmental, Social, and Governance (ESG) reporting and policies.

Heat pumps afford a sustainable and low carbon energy source for heating and hot water solutions. By replacing gas energy generation, companies simplify their Scope 1 and Scope 2 reporting.

This technology is remarkably efficient, yielding average savings of over 40-60% with ground or air source pumps. Heat pump systems operate at 400% efficiency compared to standard heating solutions, as they extract and transfer heat instead of generating it through expensive combustion processes.

Furthermore, these savings can be amplified through the integration of additional sustainable technologies like solar PV, which can provide power for the extraction process.

Dependable, Safe, and Efficient

The maturity of heat pump technology provides reliability. They demand minimal upkeep and are designed to function efficiently for approximately 25 years, unlike fossil-fuel boilers which typically last around 12 years while losing 2% efficiency annually.

From a safety perspective, heat pumps surpass fossil-fuel systems due to the infrequency of gas leaks or fire incidents. Moreover, heat pumps deliver water at more manageable temperatures, mitigating any scalding risks, and there’s no risk of carbon monoxide leaks.

Heat pumps can also double as cooling systems. Unlike gas boilers that are limited to heating, heat pumps can be reconfigured to cool spaces during warmer periods.

Operational Mechanism of Heat Pumps

Heat pumps extract thermal energy from the outdoor air, ground, or water and transfer it indoors via a series of coils.

• Fluid from the ground loop flows into an evaporator heat exchanger in the heat pump.
• The evaporator's cold refrigerant captures heat collected by the ground loop.
• This heat is processed through a compressor, significantly raising its temperature.
• The hot refrigerant then passes through a condenser heat exchanger, where it transfers heat to a closed heating or hot water system.
• As it exits the condenser, the refrigerant cools down and travels through an expansion valve, returning to the evaporator.

As a clean energy solution, heat pumps are very efficient. They use electricity to power some operational components but do not combust fossil fuels directly to create heat. Additionally, they function effectively in temperate climates, providing heating even during low external temperatures.

This technology contributes to lowering corporate carbon footprints, supporting broader Net Zero strategies. SaveMoneyCutCarbon offers a Carbon Mentor service to aid businesses in clean heat planning alongside the provision of Impact Statements.

SaveMoneyCutCarbon also administers an exclusive audit service known as the SORT (Saving Opportunity Report Tool) to identify potential areas for energy savings.

Heat Pump Varieties

Ground Source Heat Pumps utilize the generally stable temperature found in local ground or water bodies surrounding a business premise. These systems extract stored warmth from the sun, along with geothermal gradients and groundwater movement, making GSHPs effective even in colder regions.

The extracted energy is used for heating and hot water needs, whilst simultaneously providing comfort cooling from the same installation.

The setup involves pipes arranged in a borehole, trench, or surface water configured as a ground loop. These pipes circulate a heat transfer fluid in a closed loop, continually flowing through the heat pump, compressor, and expansion valve to maintain consistent warmth throughout the year.

Various solutions are available to facilitate optimal and effective heat pump installations.

Water Source Heat Pumps: Large bodies of water retain solar heat, which can be harvested for heating and cooling purposes.

This is executed through flexible pipes or stainless-steel collector plates that are placed in the water, absorbing heat from the surrounding liquid and conveying it to a GSHP.

Air Source Heat Pumps: The sun-heated air surrounding buildings creates a temperature gradient, even in colder climates, enabling energy extraction via an ASHP system for heating, hot water, and cooling.

Typically, one or more AHSPs are installed outdoors, drawing air through refrigerant coils, subsequently warming the refrigerant fluid. This energy is compressed in the heat pumps and harnessed for heating and hot water.

Super-Deduction Benefits

Companies can claim 130% capital allowances on qualifying plant and machinery costs, including heat pumps and solar installations, for costs incurred from April 1 until the end of March—the so-called super-deduction. For every pound invested, taxes can be reduced by up to 25p.

In addition to the super-deduction, three other capital allowance measures were fleshed out in the recent autumn Budget:

• The 50% first-year allowance (FYA) for special rate (including long life) assets until March for eligible companies.
• The Annual Investment Allowance (AIA), providing 100% relief for plant and machinery investments up to the record £1 million threshold until March.
• Within Freeport tax sites, companies can capitalize on new Enhanced Capital Allowances (ECA+), while companies, individuals, and partnerships gain access to an enhanced Structures & Buildings Allowance (SBA+) until September 30.

This article has been authored by SaveMoneyCutCarbon and reflects information accurate as of January. This content is intended for general guidance and educational use only. It should not be reused or shared without prior permission and does not serve as legal advice. Always perform your own research before taking any measures, and seek specific professional advice tailored to your unique situation before acting on any given information.

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