airtoairheatpumpgrant

Air to air heat pump grant, FAQs

Honest answers to the questions our customers actually ask. Last updated for 2026.

Can I get a grant for an air-to-air heat pump?

Yes — this changed in 2026. In England and Wales the Boiler Upgrade Scheme now pays £2,500 towards an air-to-air heat pump in a residential property, for applications from 28 April 2026. Your MCS-certified installer applies and deducts it from your quote. It's not available in Scotland or Northern Ireland. A lot of older web content still (wrongly) says no grant exists, because before 28 April 2026 there wasn't one.

Is the air-to-air grant £7,500 or £2,500?

£2,500. The £7,500 figure is for air-to-WATER and ground-source heat pumps, which run your radiators and heat your hot water through a wet system. Air-to-air only heats (and cools) the air in your rooms and makes no hot water, so it attracts the lower £2,500 grant. Air-to-air is also excluded from the £9,000 off-gas uplift that air-to-water/ground-source homes can get.

What's the catch with the air-to-air heat pump grant?

There are three honest catches. First, you must use an MCS-certified air-to-air installer — and MCS certification for air-to-air is still being rolled out through 2026, so eligible installers are genuinely scarce right now; no MCS-certified job means no grant. Second, the air-to-air system must REPLACE your existing heating — you can't keep your gas boiler and add air-to-air just for cooling. Third, air-to-air makes no hot water, so you'll keep a separate hot-water source. If those three line up for your home, the £2,500 is real.

Do I qualify if I keep my gas boiler and just want cooling?

No. This is the single biggest misunderstanding. The grant is for replacing your heating system with air-to-air, not for adding an air-conditioning unit alongside a boiler you keep. If you want summer cooling and intend to keep your gas boiler for heating, you do not qualify for the £2,500 — and we'd rather tell you that in 30 seconds than sell you a survey.

I have electric storage heaters — do I finally qualify?

Yes, and you're exactly who the 2026 change targeted. gov.uk lists the systems you can replace as 'oil, gas, electric or LPG', so all-electric and storage-heater homes now qualify (the one bar is already having a heat pump). Removing the old EPC requirement helped too. Air-to-air against storage heaters is also the strongest running-cost case there is — a SCOP-4 unit uses roughly a quarter of the electricity for the same heat.

Is it true air-to-air is only for homes replacing direct electric heating?

No — that's a common myth from installer blogs, not the law. gov.uk's own eligibility page lists 'oil, gas, electric or LPG' as the systems you can replace, and the legislation's only air-to-air-specific restriction is 'residential buildings only'. Air-to-air is best SUITED to electric-heated homes and flats because they have no wet system to rip out, but it is not legally restricted to them — a home replacing a gas boiler is listed as eligible.

Do air-to-air heat pumps qualify for 0% VAT?

Generally yes, on the installation, across the UK. Under HMRC VAT Notice 708/6, installing a qualifying air source heat pump is zero-rated (0% VAT) until 31 March 2027, then reverts to 5% (not 20%). HMRC's view is that most fixed air-conditioning units are air source heat pumps; the unit must be permanently fixed (not portable) and must provide heating. It's a price reduction, not cash back — and it stacks on top of the £2,500 grant.

Is air-to-air eligible for ECO4 or a 'free' heat pump scheme?

No. Ofgem's ECO4 guidance states an air-to-air system 'is not considered to be a renewable system in ECO4', because it doesn't heat your water — only air-to-water qualifies. So any site offering 'a free air-to-air heat pump on ECO4' is incorrect. ECO4 is a low-income/benefits scheme running to 31 December 2026, and it doesn't cover air-to-air.

Are air-conditioning units and air-to-air heat pumps the same thing?

Essentially yes. A modern reversible ('heat pump') air-conditioning system IS an air-to-air heat pump — the same hardware moves heat in either direction, warming your rooms in winter and cooling them in summer. 'Air conditioning' emphasises the cooling; 'air-to-air heat pump' emphasises the heating. HMRC and MCS both treat modern reversible air-con as air source heat pumps. A cooling-only unit that can't heat would not qualify for the grant.

Is there an air-to-air heat pump grant in Scotland?

Effectively no. The Boiler Upgrade Scheme doesn't operate in Scotland, and Scotland's own Home Energy Scotland grant and loan require a heat pump to provide 100% of your heating AND hot water — which air-to-air can't, because it makes no hot water. So a Scottish homeowner wanting air-to-air has no capital grant; only the UK-wide 0% VAT relief applies. We'd rather tell you that honestly than pretend otherwise.

Is there an air-to-air grant in Wales or Northern Ireland?

Wales: yes — the Boiler Upgrade Scheme covers England and Wales, so the £2,500 air-to-air grant applies (and low-income households may separately get the means-tested Nest scheme, though that typically funds air-to-water). Northern Ireland: no — there's no Boiler Upgrade Scheme in NI, so the dependable support is the UK-wide 0% VAT relief.

Can a flat or park home get the air-to-air grant?

Flats: yes — air-to-air suits flats well (small outdoor unit, no cylinder or radiators needed) and BUS is open to residential properties in England and Wales; just check your lease, as a freeholder's consent for the external unit is usually needed. Park/static homes: likely eligible now the EPC requirement has been removed, but that point comes from secondary sources, so confirm with an MCS installer and Ofgem before relying on it — for some park homes ECO4 or the Warm Homes: Local Grant is the more reliable route.

How much does an air-to-air heat pump cost, and what's the net price after the grant?

A single-room split runs about £1,200-£3,000; a 2-room multi-split £2,800-£4,500; a 3-4 room whole-home system £3,500-£7,000, all including 0% VAT. gov.uk cites a typical install at about £4,500 for a flat or small house. Deduct the £2,500 grant (where you qualify) and net cost can fall to roughly £300-£4,500 depending on size. Note a single-room top-up usually doesn't qualify for the grant.

Will an air-to-air heat pump actually save me money?

It depends what you're replacing. Against electric storage/panel heaters or LPG, yes — meaningfully (roughly £500-£1,000+ a year, with payback often under 2-4 years net of the grant). Against oil, the saving is modest. Against mains gas, it's roughly break-even on running cost at current prices — you'd buy it for the summer cooling and low install cost, not to beat your gas bill. We show the honest maths on the cost page rather than promise a single headline number.

How do I get hot water if air-to-air doesn't provide it?

You keep a separate hot-water source — most commonly an electric immersion cylinder (which you may already have), a standalone hot-water heat pump, or existing water heating. Important: you generally can't keep a fossil-fuel boiler running your SPACE heating and still get the grant (that's an ineligible hybrid); keeping a boiler for hot water only is a grey area, so confirm your exact setup with an MCS installer. A heat battery is also £2,500 grant-eligible, but it's one grant per property, so you can't claim both.

When did air-to-air become eligible, and can I actually claim it right now?

Eligible from 28 April 2026, under the Boiler Upgrade Scheme (England and Wales) (Amendment) Regulations 2026. 'Right now' comes with one honest caveat: the £2,500 is fully in force, but MCS is still accrediting certification bodies (via UKAS) to sign off air-to-air installers, with no fixed completion date — so MCS-certified air-to-air installers are scarce in some areas. Confirm a prospective installer is MCS-certified specifically for air-to-air before you sign, because the grant only pays out on an MCS-certified job.

Why homeowners trust this guide

  • Independent — we don’t sell kit
  • Every figure sourced from gov.uk, Ofgem & HMRC
  • MCS-certified installers only
  • No pushy sales, no obligation
  • Updated July 2026

Heat pump grants across the UK

Looking at a wet system instead? Compare heat pump installation grants.

In Scotland, see the funded routes for heat pump grants in Scotland.

Welsh homeowners can also check Welsh heat pump grants.

For business premises, look at commercial heat pump grants.

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