Could you get £2,500 towards an air-to-air heat pump?

Homeowners and residential property owners in England and Wales may now be able to claim £2,500 towards an eligible air-to-air heat pump through the government’s Boiler Upgrade Scheme.

The grant isn’t for every air-conditioning job, though. It’s aimed at properties where the heat pump is the main heating system most often when you’re replacing an existing system, renovating, converting a building into a home, or planning an eligible self-build. To qualify, it must be designed to meet the property’s full space-heating needs. A single unit in a bedroom alongside an existing gas boiler won’t count.

What is the Boiler Upgrade Scheme?

The scheme helps property owners with the upfront cost of replacing an existing heating system with a lower-carbon alternative. It already covered air-to-water and ground-source heat pumps; from 28 April 2026, eligible residential air-to-air installations were added, with a grant of £2,500.

The grant doesn’t usually need to be repaid, its value is simply deducted from what you pay. It applies whether you’re replacing an oil, LPG, gas or direct-electric system, or fitting a low-carbon system as part of a wider project.

What is an air-to-air heat pump?

An air-to-air heat pump draws heat from the outside air and transfers it into your home. Most modern systems reverse the process too, so one system gives you efficient heating in winter, cooling in summer, room-by-room temperature control and filtered air.

Unlike an air-to-water heat pump, it doesn’t use radiators or underfloor heating, indoor units deliver warm or cool air directly into each room. That makes it especially appealing for renovations, buildings without a wet central-heating system, and homes where cooling matters as much as heat.

Air-to-air heat pump, or ordinary air conditioning?

The two use much the same technology, and many units do both heating and cooling. For the grant, what matters is how the system is designed and used.

A standard AC installation might only cool or occasionally heat one or two rooms. A qualifying air-to-air installation has to be a genuine heating solution for the whole property: correctly sized to meet its full space-heating needs, usually with multiple indoor units and a proper heat-loss assessment. It’s the complete system that has to meet the requirements, not just the product you choose. So fitting AC in a bedroom or home office doesn’t automatically make it eligible, it comes down to whether the system is designed to heat the whole home.

Who might benefit?

The grant tends to suit people making wider changes to a property:

• Homeowners replacing a boiler who want heating and cooling from one system.
• Renovators, for whom a major project is a natural time to fit the indoor units, pipework and outdoor unit neatly into the finished property.
• Conversions – barns, offices or commercial units becoming homes.
• Self-builders – genuine self-builds can qualify where the ownership and construction conditions are met; most developer-led new-builds can’t.
• Landlords, where the heat pump replaces a qualifying system and meets the full heating requirement. Adding AC to one room while keeping the boiler won’t qualify.

Which systems do we install?

We install systems from a range of leading manufacturers. Our recommended options are the Bosch Climate 3200i – heating, cooling and filtered air with smart control via the Bosch HomeCom Easy app and the Bosch Climate 7000i, which adds dehumidification and air purification, carries an A+++ rating for heating and cooling, and runs from as little as 19dB, so it suits bedrooms and living spaces.

The right model and design depend on the property’s size, insulation, calculated heat loss and how it’s used. Fitting a Bosch Climate product doesn’t by itself qualify the installation the whole system has to be designed and installed in line with the scheme.

Are you eligible?

You may qualify if the property is an eligible residential property in England or Wales, you own it (or act for the owner), you’re replacing an eligible existing heating system, the heat pump is designed to meet the full space-heating needs, and the products, installation and certified process meet the required standards. The property also mustn’t have already had certain government heat-pump funding.

Owner-occupied homes, rentals, second homes, some conversions and eligible self-builds may all qualify. Note that a hybrid arrangement pairing a fossil-fuel boiler with a heat pump isn’t eligible, the heat pump has to cover the full heating needs on its own.

How to apply

The scheme is installer-led, so you don’t normally submit the main application yourself. You contact a certified installer, arrange an assessment, and agree on the system design and quotation. The installer then submits the application on your behalf, the grant value is deducted from what you pay, and Ofgem contacts you to confirm your consent. An assessment is essential, eligibility can’t be judged from the indoor unit alone.

Speak to Custom Heat & Cool

We help homeowners, landlords, renovators and self-builders weigh up their options, whether that’s standard air conditioning or an air-to-air heat pump as your home’s main heating system. We’ll assess your property, talk through suitable systems, and tell you clearly whether the installation is likely to meet the scheme criteria.

Replacing your heating or planning a major project? Contact us to arrange an assessment. We can help with that too, it’s unlikely to qualify for the grant, but it’ll still give you efficient heating, cooling and filtered air where you need it.