£2,500 Air-to-Air Heat Pump Grant: Who Qualifies and What Does It Cover?

Homeowners in England and Wales may now be able to receive £2,500 towards an air-to-air heat pump through the Boiler Upgrade Scheme. These systems can heat a home in winter and provide cooling in summer, but the grant is not simply a payment towards any domestic air-conditioning unit.

The installation must meet the Boiler Upgrade Scheme rules, use eligible equipment and be completed by an appropriately certified installer. Your existing heating system, property type and the way the proposed system will heat the whole home also matter.

Here is what the £2,500 air-to-air heat pump grant covers, who may qualify and what you should check before accepting a quotation.

What is the £2,500 air-to-air heat pump grant?

The grant is part of the Boiler Upgrade Scheme, commonly shortened to BUS.

Under the current scheme, an eligible homeowner can receive:

• £2,500 towards an air-to-air heat pump
• £7,500 towards an air-to-water heat pump
• £7,500 towards a ground source heat pump
• £5,000 towards an eligible biomass boiler

The £2,500 is normally provided as an upfront discount on the installer’s quotation. It is not usually paid directly to the homeowner after the work has been completed.

The installer makes the application, communicates with Ofgem and claims the grant after the eligible installation has been completed.

Important: a £2,500 grant does not automatically mean the installation will be free. The final price will depend on the number of indoor units, the size and layout of the property, electrical work, pipe routes, access and any additional heating or hot-water requirements.

What is an air-to-air heat pump?

An air-to-air heat pump takes heat from the outside air and transfers it into the property. Instead of heating water for radiators, it delivers warm air through one or more indoor fan units.

Most reversible systems can operate in the opposite direction during warm weather, removing heat from the room and providing cooling. This is why air-to-air heat pumps are often described as air-conditioning systems.

A typical system includes:

• an outdoor heat-pump unit
• one or more indoor fan units
• refrigerant pipework between the units
• condensate drainage
• electrical supplies and controls

A single-split system connects one outdoor unit to one indoor unit. A multi-split system connects one outdoor unit to several indoor units serving different rooms or zones.

Is an air-to-air heat pump the same as air conditioning?

Many modern domestic air-conditioning systems are reversible air-to-air heat pumps. They can provide cooling in summer and heating in winter.

However, that does not mean every air-conditioning installation qualifies for the government grant. The scheme supports eligible air-to-air heat-pump installations that meet its technical, certification and property requirements.

A cooling-only unit, portable air conditioner or installation completed outside the approved process should not be assumed to qualify.

Who can qualify for the air-to-air heat pump grant?

The Boiler Upgrade Scheme is available for eligible properties in England and Wales. Air-to-air heat-pump grants are restricted to residential properties.

You may qualify when:

• you own the property
• the property is an eligible home in England or Wales
• the new system replaces an existing fossil-fuel or direct-electric heating system
• the installation is designed to meet the full space-heating needs of the property
• the equipment and installation meet the scheme’s technical standards
• the work is completed and commissioned by an eligible MCS-certified installer
• the property has not already received incompatible government funding for the same installation

The installer should assess the property and confirm whether the proposed design complies with the scheme. Do not rely solely on an advert saying that a grant is available.

Which properties are unlikely to qualify?

You will not normally qualify for the air-to-air grant when:

• the installation is in a non-residential building
• you are replacing an existing low-carbon heating system
• the property is social housing
• the system is only intended to heat or cool one room rather than meet the home’s full heating requirement
• you intend to retain a fossil-fuel boiler as part of an ineligible hybrid system
• the equipment or installer cannot meet the required certification standards
• government or Energy Company Obligation funding has already paid for the same heat-pump installation

Most conventional new-build properties are excluded, although certain genuine self-build homes can qualify when they meet the scheme’s conditions.

Can I keep my gas boiler and claim the grant?

You should not assume that you can retain a gas boiler as part of the main heating system and still receive the grant.

Boiler Upgrade Scheme funding is not available for an ineligible hybrid arrangement combining a fossil-fuel boiler with a heat pump. The supported system must replace an existing fossil-fuel or electric heating system and must be capable of meeting the full space-heating requirement.

This point is particularly important with air-to-air systems. Installing a single unit in the living room while continuing to use the boiler throughout the rest of the house would not normally represent a whole-home replacement.

Ask the installer to explain in writing:

• which existing heating appliances will be removed or disconnected
• how every regularly heated room will be served
• how the design meets the property’s calculated heat loss
• how domestic hot water will be produced
• why the complete design qualifies for BUS funding

Does an air-to-air heat pump provide hot water?

A standard air-to-air heat pump usually provides space heating and cooling, not domestic hot water.

You will therefore need a separate way to heat water for taps, baths and showers. Depending on the property, that could involve a hot-water cylinder, an immersion heater, a heat-pump water heater or another eligible arrangement specified by the system designer.

The Boiler Upgrade Scheme requires the overall installation to address the property’s heating and hot-water requirements. The suitability of any supplementary appliance must be assessed as part of the full design.

This is one of the biggest differences between an air-to-air system and an air-to-water heat pump. An air-to-water heat pump normally supplies a wet central-heating system and can also heat a suitable hot-water cylinder.

How much does an air-to-air heat pump cost after the grant?

There is no reliable one-price answer because domestic installations vary considerably.

The total can be affected by:

• the number and output of the indoor units
• whether the system is single-split or multi-split
• the length and complexity of refrigerant pipe runs
• the position of the outdoor unit
• access equipment or scaffolding
• condensate drainage routes
• electrical upgrades
• noise-control measures
• the separate domestic hot-water solution
• making good and decoration

A quotation should show the full installation price, the £2,500 grant deduction and the amount you will actually pay.

Obtain more than one detailed quotation and make sure each installer is pricing a comparable whole-home design. A cheap single-room proposal is not equivalent to a correctly sized multi-room heating system.

Are air-to-air heat pumps cheap to run?

Air-to-air heat pumps can deliver several units of heat for each unit of electricity they consume, but that does not automatically guarantee lower bills than every alternative.

Running costs depend on:

• the heat loss of the property
• the outdoor temperature
• the system’s seasonal efficiency
• electricity prices and tariff
• the temperature selected indoors
• how many rooms are heated
• how long the system operates
• filter condition and maintenance
• the energy used to produce domestic hot water

Ask for a room-by-room heat-loss calculation and a written estimate of annual electricity consumption. Treat any promise of guaranteed savings cautiously unless it is supported by the property assessment and transparent assumptions.

Which homes suit an air-to-air heat pump?

Air-to-air heating can be particularly practical where there is no existing wet radiator system or where installing radiators and water pipework would be difficult.

Potentially suitable properties can include:

• flats with an acceptable location for an outdoor unit
• smaller houses with relatively open layouts
• homes currently heated by direct electric heaters
• properties where summer cooling is also valuable
• well-insulated homes with modest room-by-room heat losses

It can be harder to distribute heat evenly in a large house with many small, closed rooms. Several indoor units may be required, increasing the installation cost and the amount of visible equipment.

The indoor units also move air and produce some fan noise. Anyone sensitive to airflow or bedroom noise should see and hear a comparable operating system before deciding.

Do you need insulation before installing one?

There is no substitute for calculating the heat loss of the actual property.

Insulation and draught reduction can lower the amount of heat the system must supply. That may improve comfort, reduce electricity consumption and allow smaller equipment to be specified.

However, avoid assuming that every home must complete an expensive package of insulation work before a heat pump can operate. The installer should identify the relevant improvements and explain how each one affects the design.

If the property has an Energy Performance Certificate, its recommendations can provide a useful starting point. They do not replace a detailed heating assessment.

Do you need planning permission for an air-to-air heat pump?

Planning requirements depend on the property, the location and the design of the installation.

Some heat-pump installations can be completed under permitted development rights, subject to conditions covering matters such as positioning, equipment size and noise. Planning permission or additional consent may still be needed for:

• listed buildings
• some homes in conservation areas
• flats and leasehold properties
• installations that do not meet permitted-development conditions
• outdoor units in sensitive or prominent positions

Leaseholders may also require the freeholder’s written permission, even when separate planning permission is not needed.

The installer should complete the relevant noise assessment and check the planning position before work begins. Where there is any uncertainty, confirm the requirements with the local planning authority.

Can you install an air-to-air heat pump yourself?

This is not a suitable DIY installation.

Air-to-air systems involve refrigerant handling, pressure testing, electrical work, condensate drainage, commissioning and compliance documentation. The Boiler Upgrade Scheme also requires the installation to be completed by an eligible certified installer.

A competent DIYer can still help prepare for quotations by measuring rooms, noting existing insulation, identifying possible outdoor-unit positions and gathering energy bills. The final design, electrical assessment, refrigerant work and commissioning should be handled by appropriately qualified professionals.

How do you apply for the £2,500 grant?

The application is installer-led. The general process is:

1. Find eligible installers. Use the official MCS installer search and check that the installer can complete an eligible air-to-air installation.
2. Arrange a property survey. The installer should assess heat loss, room layout, outdoor-unit positioning, electrical requirements, noise and hot water.
3. Compare detailed quotations. Check that the grant is clearly shown as a deduction and that all required work is included.
4. Choose an installer. The installer submits the application to Ofgem on your behalf.
5. Confirm your consent. Ofgem contacts the property owner to confirm the application and eligibility declarations.
6. Complete the installation. The installer commissions the system and provides the required certification and handover information.
7. The installer claims the grant. Ofgem pays the eligible amount to the installer after the work and checks have been completed.

Ofgem advises property owners to respond promptly when asked to confirm consent. A failure to complete the required confirmation within the stated period can cause the application to be rejected.

Questions to ask before accepting a quotation

Before signing a contract, ask the installer:

• Are you currently certified to install this system under the Boiler Upgrade Scheme?
• Is the proposed equipment eligible for the £2,500 grant?
• Can I see the room-by-room heat-loss calculation?
• How will the system heat every part of the home?
• What will provide domestic hot water?
• What seasonal efficiency has been assumed?
• What annual electricity use do you estimate, and what assumptions were used?
• How much fan and outdoor-unit noise should I expect?
• Does the installation need planning, freeholder or listed-building consent?
• Are electrical upgrades, condensate drainage and making good included?
• What maintenance is required?
• What warranties and consumer protections apply?

Is the £2,500 air-to-air heat pump grant worth considering?

The grant is worth investigating when you want a system that can provide both heating and cooling, particularly if the property currently relies on direct electric or fossil-fuel heating and does not have a suitable wet central-heating system.

It will not be the right answer for every home. The need for several indoor units, a separate hot-water system, planning constraints or difficult pipe routes can change the economics quickly.

The most important step is to compare complete designs rather than comparing headline equipment prices. A good proposal should explain heat loss, room coverage, hot water, electricity use, noise, controls and grant eligibility before work starts.

Frequently asked questions

Can I get £2,500 for ordinary air conditioning?

Not automatically. The funding applies to an eligible air-to-air heat-pump installation completed under the Boiler Upgrade Scheme. Portable units, cooling-only systems and installations that do not meet the scheme rules should not be assumed to qualify.

Is the £2,500 grant available in Scotland?

The Boiler Upgrade Scheme covered in this article applies to England and Wales. Scotland has separate home-energy funding arrangements, with different eligibility and application rules.

Can landlords claim the air-to-air heat pump grant?

Private landlords may be eligible when the property and proposed installation satisfy the scheme rules. Social housing is excluded from BUS funding.

Can I claim more than one grant for several indoor units?

No. The scheme provides one grant per eligible property, not one grant for each indoor unit.

Will the grant cover the entire installation?

It may cover a substantial part of a smaller installation, but it is not guaranteed to cover the full cost. Multi-room systems, electrical work, difficult access and separate hot-water equipment can increase the total.

Does the system have to heat the whole house?

Yes. To qualify, the heat pump must be sized and designed to meet the property’s full space-heating requirement. A single unit intended only to heat one room is unlikely to satisfy that requirement in a larger property.

Can an air-to-air heat pump replace storage heaters?

Potentially. Homes with direct electric or storage heating can be suitable candidates, but the design must provide adequate heat throughout the property and meet all scheme requirements.

Where can I check the latest official rules?

Check the current GOV.UK Boiler Upgrade Scheme guidance and the Ofgem information for property owners. Scheme conditions and certification arrangements can change, so verify the current position before entering a contract.

Continue reading

For a wider comparison of heating options, read Are Gas Boilers Better Than Heat Pumps?.

You may also find Where Can You Install a Heat Pump in a Flat? useful when outdoor space, noise or leasehold permission could affect the installation.

This article provides general information rather than a property-specific heating design. Heat-pump sizing, refrigerant work, electrical alterations and grant eligibility should be confirmed by appropriately qualified and certified professionals.