The UK Air Conditioning Grant Explained

Get £2,500 for Your Installation

For years many homeowners thought air conditioning funding would never arrive in the UK, but that has now changed. As part of the Government’s ongoing efforts to reduce carbon emissions and support low-carbon heating, the Boiler Upgrade Scheme (BUS) has been expanded to include air-to-air heat pumps — the technical name for modern air conditioning units that provide both cooling in summer and heating in winter.

This means you can now access a grant of up to £2,500 to help cover the cost of installing an air-to-air heat pump — making year-round comfort more affordable than ever before.

What is the Air Conditioning Grant?

The Boiler Upgrade Scheme was originally designed to help homeowners switch from fossil fuel heating systems to low-carbon alternatives, such as air source heat pumps, with a £7,500 grant.

In late 2025 the scheme was updated so that modern air-to-air heat pumps — units that work exactly like traditional air conditioning but also heat your home — became eligible for a smaller grant of £2,500.

These systems are recognised as renewable heating technology because they can:

• Pump heat out of your home in warm weather to keep you cool
• Reverse the process in winter to heat indoor spaces efficiently
• Offer year-round comfort with a single unit

This funding is not part of a future scheme — it is available now for eligible installations.

How the Grant Works

The process is simple and installer-led, which means you don’t have to handle complicated paperwork yourself:

Free Quote: Our team assesses your property and provides a tailored quote.
Eligibility Check: We check whether your home qualifies for the £2,500 grant.
Installer Apply: We submit the grant application on your behalf.
Grant Deducted: The grant is deducted from your final invoice once approved, so you never pay it upfront.

This makes the whole process much smoother and more affordable for homeowners.

Who Is Eligible?

To qualify for the air conditioning grant:

• Your property must be in England or Wales.
• You must own the property (private landlords can also apply).
• You must be replacing an existing fossil fuel or direct electric heating system with an air-to-air heat pump.
• Properties no longer need a valid EPC to apply for BUS
• The installation must be carried out by an MCS-certified installer (like us).

You’ll also need a valid Energy Performance Certificate (EPC) for your home, which helps identify energy efficiency measures.

Why This Grant Matters

Air-to-air heat pumps are among the cheapest ways to heat a room in winter and one of the most effective ways to cool it in summer. Because they run on electricity and can achieve efficiencies well above 300%, they can significantly reduce running costs compared with older electric or fossil fuel systems.

With the grant applied, a single-room installation could cost you less than £1,000, and in some cases the grant can cover most or all of the installation cost.

Bonus: Heat Battery Grants Too

In addition to the air-to-air grant, there looks like there are also going to be government grants for heat batteries — compact thermal storage units that store heat energy to provide hot water or extra warmth when needed. These can also attract up to £2,500 in grant funding, helping households further reduce reliance on fossil fuels.

Heat batteries are especially useful if you want a fully gas-free home or want to store heat generated from solar or cheap overnight electricity. We will update you with more information on this as it’s released.