Heating, ventilation, and air conditioning (HVAC) systems play a vital role in ensuring indoor comfort, air quality, and energy efficiency across residential, commercial, and industrial buildings in the UK. As building performance and environmental standards continue to tighten, the HVAC sector is under increasing pressure to deliver smarter, greener, and more efficient solutions.
But improving HVAC systems isn’t just about fitting the latest off-the-shelf units. True innovation involves overcoming technical uncertainties, such as improving energy performance, solving complex control problems, or developing bespoke systems that meet specific building or user requirements. This is where R&D tax relief comes in — supporting UK businesses that push scientific or technological boundaries in the field.
Here are some examples of qualifying activities in HVAC system design, engineering, and integration:
Developing High-Efficiency Heating and Cooling Systems
Engineering systems that go beyond conventional technology to improve energy efficiency, reduce carbon emissions, or operate effectively in challenging environments, such as high-humidity or low-temperature conditions.
Advancing Smart Control and Building Management Integration
Developing advanced control algorithms, sensor networks, or user interfaces that allow HVAC systems to adapt in real time to occupancy levels, external weather conditions, or energy tariffs.
Solving Complex Airflow and Ventilation Challenges
Engineering bespoke ventilation solutions to improve indoor air quality, thermal comfort, or noise control, particularly in buildings with unique architectural or occupancy demands.
Integrating HVAC with Renewable Energy Sources
Developing systems that integrate heat pumps, solar thermal, or other renewable technologies to reduce reliance on fossil fuels, while managing system performance and reliability.
Improving Heat Recovery and Energy Reuse
Creating or refining heat recovery ventilation (HRV) or energy recovery ventilation (ERV) systems that capture waste heat and improve overall building energy efficiency.
Enhancing Refrigerant Management and Environmental Impact
Developing low-impact refrigeration systems that use alternative refrigerants, reduce leak risks, or comply with UK regulations on fluorinated gases (F-gases).
Meeting Tight Building Regulations and Performance Standards
Engineering systems to meet evolving UK Building Regulations, such as Part L (energy efficiency) or Part F (ventilation), particularly when this requires bespoke design or technical validation.
Reducing Installation Complexity or Improving System Scalability
Developing modular, prefabricated, or scalable HVAC solutions that are easier to install, maintain, or expand, particularly in retrofit or space-constrained projects.
If your business is tackling projects like these and overcoming technical challenges in the process, you could be eligible for R&D tax relief. This incentive helps UK HVAC engineers, manufacturers, and installers recover a portion of their development costs, supporting further investment in smarter, cleaner, and more efficient climate control solutions.