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If you can meet all the exemption conditions in this guidance, you will not need an environmental permit for a new closed loop ground source heating and cooling system.

This is a system that:

• is fully sealed
• does not take water from the environment
• does not discharge water or fluids to the environment

Boreholes or pipework used for these systems are fully sealed and have no direct connection with any groundwater.

The exemption conditions apply to systems installed on or after 2 October 2023.

The exemption conditions:

• are set out in The Environmental Permitting (England and Wales) (Amendment) (England) Regulations 2023
• will be consolidated into the Environmental Permitting Regulations (England and Wales) 2016

You do not need to register your system with the Environment Agency if it meets the exemption conditions.

You must apply for an environmental permit if you cannot meet all the conditions in this guidance. Check the permitting requirements for new closed loop ground source heating and cooling systems.

1. The system must be a closed loop system that does not discharge pollutants to the environment, other than heat transfer

The system must be fully sealed and not discharge water or fluids into the environment.

2. The system must not cause pollution of surface water or groundwater

You must make sure your system:

• is not harmful to human health or the quality of water-dependent ecosystems
• does not result in damage to material property
• does not interfere with amenities or other legitimate uses of the environment

3. The system must not be in a groundwater source protection zone 1

To prevent groundwater pollution you must check if your system is in a groundwater source protection zone 1 (SPZ1).

A groundwater SPZ1 can be the area around a commercial water supply used for drinking water or food production. To check if your system is in the inner zone (zone 1) you can either:

• use Magic map search for the system location, then select Source Protection Zones merged (England) from the non-statutory land-based designations in the table of contents
• contact the Environment Agency to request a nature and heritage conservation screening if you cannot use Magic map

A groundwater SPZ1 is also any area within 50 metres of a private groundwater supply for human consumption or food production. Ask your neighbours if they have a private groundwater drinking supply. If so, ask how far their spring, well or borehole is from your system. You can also check with your local council to see if they have any records of private groundwater drinking supplies in your area.

4. The system must not be within 50 metres of a well, spring or borehole used to supply water for domestic or food production purposes

This is to prevent groundwater pollution.

To check if you can meet this condition, you can:

• use Magic map to check for SPZs, which may indicate the presence of public water supply sources nearby
• contact the local council to see if they have a record of any private water supplies close to your system
• ask your neighbours if they have a private water supply or other type of abstraction and, if so, how far their spring, well or borehole is from your system

5. The system must not be in or near protected sites and ancient woodlands

You will not meet the exemption conditions if the system is within certain distances of a protected site or ancient woodland. These distances are different depending on whether the system supplies residential property, a community building or commercial premises.

A protected site includes:

• special areas of conservation
• special protection areas
• Ramsar sites
• biological sites of special scientific interest (SSSIs)
• local nature reserves

An ancient woodland is an area that has been wooded continuously since at least the year 1600. It includes ancient semi-natural woodland and plantations on ancient woodland sites.

5.1 If your system supplies a single residential property and the maximum output is 45 kilowatts (kW) or less

You will not meet the exemption conditions if the system is within 20 metres of a protected site or ancient woodland.

You can check the maximum output of the system by:

• looking at the design records for the system
• asking the system designer

5.2 If your system supplies a single community building

You will not meet the exemption conditions if the system is within 50 metres of a protected site or ancient woodland.

Community buildings can include:

• village halls
• town halls
• churches
• education centres

5.3 If your system supplies one or more residential property and the maximum output of the system is more than 45kW

You will not meet the exemption conditions if the system is within 50 metres of a protected site or ancient woodland.

You can check the maximum output of the system by:

• looking at the design records for the system
• asking the system designer

5.4 If the system supplies a single building that is not a community building or residential premises, and the floor space is less than 1,000 square metres

You will not meet the exemption conditions if the system is within 50 metres of a protected site or ancient woodland.

This condition applies to systems supplying a building with a:

• commercial use
• mixed residential and commercial use (for example, residential flats above a shop)

5.5 If the system supplies more than one building and the total combined floor space of the buildings is less than 1,000 square metres

You will not meet the exemption conditions if the system is within 50 metres of a protected site or ancient woodland.

This condition applies to systems supplying buildings used for:

• public offices
• commercial, retail and industrial uses

This condition does not apply if your system supplies one residential property and the maximum output of the system is 45kW or less. These systems can meet condition 5.1.

5.6 If the system supplies one building or more with a combined floor space more than 1,000 square metres, or any other building that does not meet conditions 5.1 to 5.5

You will not meet the exemption conditions if the system is within 250 metres of a protected site or ancient woodland.

This condition applies to systems supplying buildings such as those used for:

• public offices
• commercial, retail and industrial uses

How to check the locations of protected sites

You can use 