Decarbonising HVAC: Technologies for replacing fossil fuels in retail
This article is provided by BRC Associate Member, Mitsubishi Electric.
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From carbon reporting to tenant expectations, the need to reduce energy use and emissions in the retail sector is becoming critical for decisions around property.
One approach that can help to improve customer experience while cutting energy use and carbon emissions is replacing fossil fuel-based heating and cooling with low-carbon alternatives.
HVAC (heating, ventilating and air conditioning) systems are essential for comfortable, healthy retail environments, but ageing HVAC technologies can be a high-cost and high-carbon element in retail buildings of all sizes. Fortunately, smart retrofit technologies are making it possible to replace outdated systems to improve energy and carbon performance - with minimal disruption to day-to-day business.
Why act now?
Heating and cooling systems are not only critical to operations, but also responsible for a significant proportion of energy use in retail buildings. Figures from the Carbon Trust suggest HVAC accounts for up to 85% of typical retail energy use when ventilation, heating, cooling, and hot water are included.
For many retail premises, especially on the high street, this challenge is compounded by older infrastructure. According to government data, over 60% of non-domestic buildings in England and Wales were built before 1939. That means many retailers are working with legacy systems that are less energy efficient and very likely to be using fossil fuels (for example in gas boilers). What’s more, in some cases, they may be on the point of becoming obsolete (see our previous article).
These are risks to businesses of all sizes. The operational cost of energy-inefficient HVAC systems is growing because commercial electricity prices are rising year-on-year. And the future costs of maintaining obsolete air conditioning systems must also be accounted for, as phased-down refrigerants under the F Gas Regulations (see our previous article) become harder to find and more expensive.
The message is clear: if you operate older HVAC equipment, it makes good business sense to review replacement options sooner rather than later.
Replacing fossil fuels – a simple approach
With today’s technologies, decarbonising HVAC doesn’t have to mean a complete strip-out. Modern replacement systems are often designed to work with existing infrastructure such as pipework, controls, and electrical cabling. This “retain, reuse, replace” approach minimises disruption to trading, cuts installation time and avoids unnecessary material waste.
Reusing existing pipework and cabling also saves embodied carbon compared with a full refit and cuts the installation cost significantly. In the long-term, new systems deliver better efficiency and lower operational energy use from day one of operation.
Heat pump technology is central to this low-carbon transition. Air source heat pumps are now being deployed in retail as both heating and cooling systems. For many shops, especially smaller units or those on constrained sites, packaged or split air-to-air heat pumps using low-GWP refrigerants such as R32 offer a direct and efficient upgrade path.
Replacing HVAC equipment is only part of the decarbonisation story. Equally important is how those systems are controlled. Smart building management tools, such as cloud-based control platforms, enable retailers to optimise HVAC use, reduce unnecessary energy consumption and monitor air quality in real time.
These systems can be scaled across store portfolios, offering remote access and insights into usage patterns that can help drive further improvements. For facilities managers juggling multiple sites, this level of visibility can be a game-changer, turning reactive maintenance into predictive action and giving businesses the data they need to track progress against net zero goals.
Planning ahead
Decarbonisation is both a technical and commercial decision. Capital expenditure constraints, landlord relationships and lease cycles all affect what’s possible and when. That’s why retrofit planning needs to start early.
Industry groups such as the UK Green Building Council and the British Retail Consortium are urging retailers to identify “trigger points” such as lease renewals, plant replacement cycles, or store refurbishments as opportunities to implement low-carbon HVAC solutions. These moments offer the chance to embed long-term value improvements without additional disruption.
And with the Minimum Energy Efficiency Standards (MEES) likely to tighten in the next few years, there’s a growing risk that poorly-performing properties could become economically diminished assets. By investing in energy-efficient HVAC upgrades, retailers and landlords alike can not only improve building performance and customer comfort but also protect the long-term value of their premises.
The road to zero
As the UK retail sector works to meet the British Retail Consortium’s Climate Action Roadmap, replacing fossil-fuel heating and high-GWP cooling systems with modern, low-carbon technologies can help to achieve that goal. From heat pumps and low-GWP refrigerant-ready systems to smart controls and data-enabled optimisation, the tools for decarbonising HVAC are proven, scalable, and available now.
