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Heat pump grants and tax relief in the UK

Updated 4 October 2026. Figures from gov.uk, legislation.gov.uk, Ofgem and Business Energy Scotland, checked on that day.

This page is for businesses, installers and consultants. Templari sells in the UK through partners and installers.

Businesses: Kita Air in warehouses, workshops and factories

Kita Air is a 34-47 kW air-to-air heat pump for halls from 300 m² to whole factories. It heats in winter down to -25 °C outside and cools in summer, with no water circuit and no gas boiler.

  • England and Wales: the Boiler Upgrade Scheme does not cover air-to-air heat pumps in non-residential buildings (regulation 9A, in force since 28 April 2026). There is no national grant for Kita Air in a warehouse.
  • Tax relief: a space heating system is an integral feature. With the Annual Investment Allowance a business deducts 100 % of the cost from taxable profit in the year of purchase, up to £1 million. Above that, companies get a 50 % first-year allowance on special rate assets. Claimed in the tax return; check with your accountant.
  • Scotland: the SME Loan Scheme lists air-to-air heat pumps. Interest-free loan from £1,000 to £130,000 over 8 years and 75 % cashback up to £10,000 for renewable heat, while funds last. A free Business Energy Scotland report comes first, and work must not start before the written offer.

Homes and small buildings: Kita air-to-water from 5 to 50 kW

  • Boiler Upgrade Scheme (England and Wales): £7,500 for an air-to-water heat pump up to 45 kW in homes and small non-residential buildings. Product and installer must be MCS certified, with a seasonal performance of at least 2.8.
  • Until 31 March 2027 the grant rises to £9,000 when the heat pump replaces an oil or LPG boiler in a building off the gas grid.
  • The Kita range uses the natural refrigerant R290: from single houses (Kita XS) to apartment blocks and commercial buildings (Kita LP, Kita LP Plus).

What this means for Kita Air

In England and Wales the case for Kita Air rests on running costs, productivity and the 100 % tax deduction, not on a grant. In Scotland SMEs can add the interest-free loan and the 75 % cashback.

Are you an installer, consultant or distributor?

Templari is looking for partners in the UK. Write to us through the form below: company, region, activity. We reply with the documentation on the air-to-water range, Kita Air and the schemes for your customers. More: Heat pump partner in the UK.

Product pages: air-to-water 10-49 kW, Kita Air 34-48 kW.

Sources: gov.uk/capital-allowances; legislation.gov.uk/uksi/2026/390; Ofgem, Boiler Upgrade Scheme installer guidance v5.1 (02/07/2026); businessenergyscotland.org/sme-loan-scheme-faqs. Accessed 4 October 2026.