New £2,500 Air-to-Air Heat Pump Grant: Who Qualifies in 2026?
Last updated: September 2026
Air-to-air heat pumps are now included in the Boiler Upgrade Scheme, giving eligible residential properties in England and Wales £2,500 towards the cost and installation of a qualifying system.
The change took effect on 28 April 2026 and is particularly significant because many air-to-air systems can provide both heating in winter and cooling in summer. But this is not a general £2,500 discount for installing air conditioning.
• Independent UK heat pump researcher
• Reviewed for accuracy
Quick Answer: Is There Really a £2,500 Air-to-Air Heat Pump Grant?
Yes. From 28 April 2026, eligible residential air-to-air heat pump installations became eligible for a £2,500 Boiler Upgrade Scheme grant.
The grant is available in England and Wales and is applied as an upfront discount through an MCS-certified installer.
The important catch
This is not a general grant for adding air conditioning to a home. The installation must meet Boiler Upgrade Scheme rules, including requirements around the property, existing heating system, system design and MCS certification.
What Changed in 2026?
Before April 2026, the Boiler Upgrade Scheme mainly supported air-to-water and ground source heat pumps, with biomass boilers qualifying in more limited circumstances.
The scheme was expanded so that eligible air-to-air heat pumps installed in residential properties could also receive government support.
The current grant values are:
| Technology | Current BUS Grant |
|---|---|
| Air-to-air heat pump | £2,500 |
| Air-to-water heat pump | £7,500 |
| Ground source heat pump | £7,500 |
| Eligible off-grid oil/LPG air-to-water or ground source system | Up to £9,000 |
| Biomass boiler | £5,000 |
Air-to-air therefore receives less support than conventional air-to-water heat pumps, but air-to-air systems can also have a lower installation cost in some homes.
See our Air-to-Air Heat Pump Cost UK guide for the wider cost comparison.
Who Qualifies for the £2,500 Air-to-Air Heat Pump Grant?
There are several important eligibility conditions.
At a high level, the installation must:
- be at an eligible residential property in England or Wales;
- replace an eligible existing fossil-fuel or electric heating system;
- use an eligible air-to-air heat pump;
- be installed through an appropriately MCS-certified installer;
- meet the Boiler Upgrade Scheme technical requirements; and
- be capable of meeting the property’s full space-heating requirement.
Only residential properties can currently receive BUS support for an air-to-air heat pump. The same £2,500 grant is not available for installing air-to-air systems in commercial or other non-residential buildings.
Does the Air-to-Air System Have to Replace Your Existing Heating?
Yes. This is one of the most important differences between an eligible BUS installation and simply adding air conditioning to a home.
For an existing property, the BUS-funded installation must replace an existing fossil-fuel or electric heating system.
That can include heating such as:
- gas;
- oil;
- LPG;
- direct electric heating; or
- other eligible existing heating systems.
You cannot normally claim the grant simply because you want to install a wall-mounted split unit for additional summer cooling while leaving your existing heating system unchanged.
Can I Get £2,500 Towards Air Conditioning?
Not simply because a system provides cooling.
Many modern fixed split air-conditioning systems are technically reversible air-to-air heat pumps. They can transfer heat into the home during winter and reverse the process to provide cooling in summer.
However, a cooling-only installation or a system added mainly as supplementary summer air conditioning does not automatically qualify for the Boiler Upgrade Scheme.
The BUS-funded heat pump needs to be designed to meet the property’s full space-heating needs and satisfy the other scheme requirements.
If your main objective is cooling rather than replacing your heating, start with our Home Air Conditioning UK guide instead.
Does an Air-to-Air Heat Pump Have to Heat the Whole House?
For the Boiler Upgrade Scheme, the heat pump must have enough thermal capacity to provide 100% of the property’s space-heating requirement.
This is important because many UK air-conditioning installations only serve one or two rooms.
A single wall-mounted unit in a bedroom or conservatory is therefore very different from a properly designed whole-home air-to-air heating system.
An eligible installation may require:
- multiple indoor units;
- a multi-split system;
- careful heat-loss calculations;
- appropriate indoor-unit positioning; and
- sufficient heating capacity for the property.
Read our main Air-to-Air Heat Pumps UK guide for a fuller explanation of how these systems heat an entire home.
What About Hot Water?
This is where air-to-air systems differ substantially from conventional air-to-water heat pumps.
An air-to-air heat pump normally heats the air inside rooms. It does not usually heat domestic hot water for taps, showers or a hot-water cylinder.
Under the current Boiler Upgrade Scheme rules, supplementary non-fossil-fuel heating appliances can be used alongside a BUS-funded heat pump.
For hot water, this could potentially include equipment such as:
- an immersion heater;
- a dedicated hot-water heat pump;
- another compatible electric hot-water solution; or
- another eligible supplementary system.
The overall arrangement still has to meet the relevant scheme and technical requirements.
Compare the complete system
Do not compare only the price of the air-to-air outdoor unit. If you are replacing a boiler, include the cost and practicality of providing domestic hot water as part of your decision.
Can You Keep a Gas or Oil Boiler as Backup?
Not as a fossil-fuel hybrid arrangement funded through BUS.
Fossil-fuel hybrid heat pump systems are not eligible for the Boiler Upgrade Scheme.
From April 2026, supplementary heating appliances can be used alongside eligible heat pumps, but they must not be fossil-fuel based.
This means an eligible installation may work alongside certain electric or other low-carbon supplementary technologies, but you should not assume you can keep an existing gas or oil boiler as permanent backup and still receive the grant.
Do Multi-Split Air-to-Air Systems Qualify?
They can potentially qualify where the complete installation satisfies the Boiler Upgrade Scheme requirements.
Ofgem’s current installer guidance allows multi-heat-pump systems and specifically includes configurations using more than one air-to-air heat pump.
The important issue is not simply whether the system is described as single-split or multi-split. The complete design still needs to meet the property’s required space-heating load and the relevant MCS and BUS technical standards.
Can Landlords Get the £2,500 Grant?
Potentially, yes.
The Boiler Upgrade Scheme is available to property owners, and eligible residential property types can include owner-occupied homes, rented properties, second homes and holiday homes.
The property and installation still need to satisfy all the normal scheme requirements.
Can New-Build Homes Get the Air-to-Air Grant?
Most ordinary new-build properties are not eligible for Boiler Upgrade Scheme support.
Certain eligible self-build properties can qualify where the specific scheme conditions are met.
If you are buying a newly built home from a developer, do not assume the £2,500 grant will be available.
Is the Grant Available in Scotland or Northern Ireland?
No. The Boiler Upgrade Scheme applies to England and Wales.
Scotland and Northern Ireland operate separate support arrangements, so homeowners there need to check the schemes available in their own nation.
How Do You Apply for the £2,500 Air-to-Air Grant?
The Boiler Upgrade Scheme is installer-led, so you normally do not apply directly to Ofgem yourself.
- Find an MCS-certified installer that is certified for the relevant air-to-air technology.
- Have the property assessed and confirm that the proposed installation is intended to meet the scheme requirements.
- Review the design and quotation, including how the £2,500 grant is shown.
- Your installer applies for the BUS voucher on your behalf.
- You confirm your consent and details when contacted as part of the application.
- The installation is completed and the installer redeems the voucher.
The full £2,500 grant must be passed on to the property owner as an upfront discount and should be reflected in the quote and invoice.
How Long Is an Air-to-Air BUS Voucher Valid?
Current Ofgem installer guidance gives air-to-air heat pump vouchers a validity period of three months.
That means the installation and voucher-redemption process needs to be completed within the applicable timescale.
If you are planning a more complex multi-room installation, factor survey, design and installer availability into the timetable rather than assuming the grant can be secured indefinitely.
Is £2,500 Enough to Make Air-to-Air Worth Considering?
For some households, the grant can make a meaningful difference to the upfront cost.
Air-to-air systems can sometimes cost less to install than a full air-to-water heat pump because they do not normally require:
- new radiators;
- wet central-heating pipework;
- a low-temperature radiator redesign; or
- the same type of hot-water cylinder installation.
But the comparison is not automatically favourable.
A whole-home air-to-air system may require several indoor units, and you still need a suitable way to provide domestic hot water.
Installation cost also depends on property layout, heat loss, system sizing, indoor-unit positions, electrical work and installation complexity.
£2,500 Air-to-Air Grant vs £7,500 Air-to-Water Grant
The lower grant value is only one part of the comparison.
| Air-to-Air | Air-to-Water | |
|---|---|---|
| Standard BUS grant | £2,500 | £7,500 |
| Heat delivery | Warm air through indoor units | Radiators / underfloor heating |
| Cooling | Usually yes with reversible systems | Usually not through standard radiators |
| Domestic hot water | Normally separate solution required | Usually designed to provide it |
| Radiators required? | No | Usually yes |
For eligible off-grid oil or LPG homes, the difference can be larger because qualifying air-to-water or ground source systems can currently receive up to £9,000. The enhanced grant does not apply to air-to-air systems.
What Should You Ask an Installer Before Relying on the Grant?
Before signing an agreement, ask the installer to confirm:
- whether the property qualifies for BUS;
- whether the proposed air-to-air equipment is eligible;
- what existing heating system is being replaced;
- how the system has been sized to meet the full space-heating requirement;
- how domestic hot water will be provided;
- whether any supplementary heating is included;
- the total installation cost before the grant;
- where the £2,500 discount appears on the quotation; and
- whether the complete installation will be MCS certified.
Do not choose a system solely because an installer describes it as “grant eligible”. The final installation needs to comply with the scheme requirements.
£2,500 Air-to-Air Heat Pump Grant FAQ
How much is the air-to-air heat pump grant?
The current Boiler Upgrade Scheme grant for an eligible residential air-to-air heat pump is £2,500.
When did the £2,500 air-to-air grant start?
Air-to-air heat pumps became eligible under the Boiler Upgrade Scheme for applications properly made from 28 April 2026.
Can I get £2,500 towards ordinary air conditioning?
Not automatically. An eligible system must meet Boiler Upgrade Scheme requirements as an air-to-air heat pump installation, including being designed to meet the property’s space-heating needs and replacing an eligible existing heating system.
Does a single-room air-conditioning unit qualify?
A single-room installation would not normally satisfy the requirement for the BUS-funded heat pump to have sufficient capacity to meet the full space-heating needs of the property.
Can the air-to-air heat pump provide cooling?
Yes. Many reversible air-to-air heat pumps can provide both heating and cooling. Providing cooling does not itself prevent eligibility, but the installation must still satisfy the heating and other BUS requirements.
Can landlords claim the air-to-air heat pump grant?
Eligible residential rental properties can potentially qualify because property owners, including landlords, can participate in the Boiler Upgrade Scheme where the property and installation meet the rules.
Is the £2,500 grant available for businesses?
Not for an air-to-air heat pump. Under the current BUS rules, air-to-air heat pump grants are limited to residential properties.
Sources & Further Reading
This article was checked against current Boiler Upgrade Scheme rules and official Ofgem guidance.
Related Guides
Thinking About Air-to-Air?
The grant is useful, but the bigger decision is whether air-to-air can meet your home’s heating requirement and how you will provide hot water.
