Air to Air Heat Pump Grant UK (£2,500): 2026 Guide

There is now a government grant for air to air heat pumps in the UK. If you own a home in England or Wales, you can get £2,500 off the cost of installing one through the Boiler Upgrade Scheme (BUS).

The grant started on 28 April 2026, when new legislation brought air to air heat pumps into the scheme for the first time. Before that date, these systems were excluded completely, which is why many older guides online still say they are not eligible. Do not trust a guide that has not been updated since April 2026.

One thing to get clear first: this is not the £7,500 grant. That bigger grant is for air to water and ground source heat pumps. Air to air systems get £2,500 because they heat rooms directly, not water.

What is the air to air heat pump grant?

The air to air heat pump grant is a £2,500 discount on the installation of an air to air heat pump, paid through the UK government’s Boiler Upgrade Scheme. The scheme is run by Ofgem on behalf of the Department for Energy Security and Net Zero (DESNZ).

The grant comes from the Boiler Upgrade Scheme (England and Wales) (Amendment) Regulations 2026, in force from 28 April 2026. The regulations added air to air heat pumps as a new eligible technology, removed the old Energy Performance Certificate (EPC) requirement, and extended the whole scheme through to 2030 (Source: legislation.gov.uk).

You never receive the money yourself. Your installer applies on your behalf and must show the £2,500 as an upfront discount on your quote and invoice; installers must not ask you to pay that part of the bill (Source: Ofgem installer guidance V5, April 2026).

The grant sits inside the government’s Warm Homes Plan, a £15 billion programme aiming to upgrade five million homes by 2030 (Source: Government Business, reporting the DESNZ announcement).

How much is the grant and when did it start?

The grant is £2,500 and applies where the application was made on or after 28 April 2026, when the legislation took effect (Source: Ofgem installer guidance V5).

Here is how it compares with the other grants under the Boiler Upgrade Scheme:

System you install	Grant	Key conditions
Air to water heat pump	£7,500	The standard choice; heats radiators and hot water
Ground source heat pump	£7,500	Needs land or a borehole
Air to air heat pump	£2,500	Residential properties only
Biomass boiler	£5,000	Rural homes off the gas grid only
Air to water or ground source, replacing oil or LPG off the gas grid	£9,000	Temporary rate, 21 July 2026 to 31 March 2027

(Sources: Ofgem; expertsure.com, figures verified August 2026)

The £9,000 rate is a temporary uplift for homes without mains gas that are heated by oil or LPG. It does not apply to air to air heat pumps (Source: Ofgem).

Prices change; get 3 quotes from MCS-certified installers.

How is an air to air heat pump different from an air to water heat pump?

This is the question that causes the most confusion, so it is worth getting clear.

An air to air heat pump takes heat from the outside air and blows warm air directly into your rooms through indoor wall units. It works like a reversible air conditioning system, so most models can also cool your home in summer (Source: Daikin UK). It does not connect to radiators and it does not heat your water.

An air to water heat pump takes heat from the outside air and uses it to heat water for your radiators or underfloor heating and your hot water cylinder. This is the system most people mean by “heat pump”, and it is the one that gets the £7,500 grant.

The difference comes down to what each system replaces. An air to water heat pump can take the place of a gas boiler for both heating and hot water; an air to air heat pump cannot, because it does not produce hot water. That is why the grant is £2,500 rather than £7,500 (Source: expertsure.com).

Who is eligible for the £2,500 grant?

You qualify if you tick all of these boxes:

• You own a residential property in England or Wales. This includes second homes and rental properties. Air to air grants are for homes only, not business premises (Sources: Ofgem; byeco.co.uk).
• You are replacing fossil fuel or electric heating. That means a gas, oil or LPG boiler, or direct electric heating such as storage heaters (Source: Ofgem).
• The heat pump becomes your main heating. Your old fossil fuel system must go. A heat pump running alongside a gas boiler is a hybrid system, and hybrid systems are not eligible (Sources: Ofgem; Grimsby Telegraph, citing installer BOXT).
• The system covers your home’s heating needs. The heat pump must meet the full space heating demand, and the combined setup must cover hot water too. Because an air to air heat pump does not heat water, you will need a separate solution such as an electric cylinder or a domestic hot water heat pump (Source: Ofgem installer guidance V5).
• Your installer is MCS certified. Your installer must hold Microgeneration Certification Scheme (MCS) certification for the technology being installed, and they apply for the grant on your behalf (Source: Ofgem).

You no longer need a valid Energy Performance Certificate; the requirement was removed on 28 April 2026. If you have one, its number is still submitted; if not, the installer provides alternative evidence such as a recent utility bill and photos of the existing heating (Sources: legislation.gov.uk; oilinstaller.co.uk).

An air to air heat pump can be installed alongside other electric heating appliances, such as a domestic hot water heat pump, an exhaust air heat pump, or a heat battery. It cannot be installed alongside any fossil fuel heating system (Source: Daikin UK).

You will not qualify if the property is a new build (except eligible self-builds), is social housing, has already received government funding for a heat pump or biomass boiler, or if you are replacing an existing low-carbon heating system. You can only claim one grant per property (Sources: Ofgem; expertsure.com).

What will an air to air heat pump cost after the grant?

Air to air heat pumps are usually the cheapest type to install, because there are no radiators, pipework or cylinders to fit. But the grant is also the smallest, and you may need to pay for a separate hot water system.

Heating installer BOXT gave these example figures for a typical three-bedroom semi-detached home:

• Air to air heat pump installation: around £3,700
• Replacement electric hot water cylinder: around £2,200
• Illustrative total: £5,900, or about £3,400 after the £2,500 grant

That figure does not include possible extra costs such as boiler removal, electrical upgrades or building alterations (Source: Grimsby Telegraph, citing BOXT, August 2026).

These are one installer’s estimates, not official prices. Real quotes vary a lot by property size, the number of indoor units and your existing electrics. Prices change; get 3 quotes from MCS-certified installers.

How do you apply for the grant?

You do not apply. Your MCS-certified installer does it for you.

1. Get quotes from MCS-certified installers; each must show the price before and after the £2,500 grant.
2. Choose an installer and confirm you are happy to go ahead; the installer applies to Ofgem for a grant voucher.
3. The installer completes the work and redeems the voucher.

The grant is an upfront discount, not cashback. Installers must pass on the full grant value at the quote stage and on the final invoice, and must not ask you to pay the grant part of the bill (Source: Ofgem).

What mistakes can cost you the grant?

Keeping your gas boiler as a backup. To qualify, the air to air heat pump must become your main heating, and your fossil fuel system must be removed. Keeping the gas boiler “just in case” means you are unlikely to qualify (Sources: Grimsby Telegraph, citing BOXT; Ofgem).

Believing the grant is £7,500. The rule is simple: if your quote is for indoor wall units with no hot water cylinder, the grant is £2,500. An installer advertising the £7,500 rate alongside an air to air quote is quoting the wrong rate (Source: expertsure.com).

Reading outdated guides. Pages written before April 2026 still say air to air heat pumps are excluded from the scheme. They were, until 28 April 2026. If a guide does not mention the 2026 changes, do not trust it.

Forgetting about hot water. An air to air heat pump does not heat water, but the scheme requires your home’s hot water demand to be met. Budget for a cylinder or a domestic hot water heat pump, and make sure your installer includes it in the plan (Source: Ofgem installer guidance V5).

Using an installer without the right MCS certification. Your installer must be MCS certified for the technology being installed. Ask to see the certification before you sign anything (Source: Ofgem).

Is the air to air grant right for your home?

The grant suits flats or small homes without central heating especially well. If you have no radiators and want cooling in summer as well as heating in winter, air to air is a strong fit.

If your home already has radiators and a hot water cylinder, an air to water system with the £7,500 grant may give you better value overall, so get surveys and itemised quotes from at least three MCS-certified installers before you decide.

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Frequently asked questions

Is the grant really £2,500? Yes. It is a fixed £2,500 for an air to air heat pump in a residential property, not the £7,500 rate for air to water and ground source heat pumps (Source: Ofgem).

Can I keep my gas boiler and still claim the £2,500? No. The air to air heat pump must become your main heating and the fossil fuel system must be removed; a heat pump alongside a gas or oil boiler does not qualify (Sources: Grimsby Telegraph; Ofgem).

Do I need an Energy Performance Certificate? No. The EPC requirement was removed on 28 April 2026 (Source: legislation.gov.uk).

Can landlords or second-home owners claim? The scheme is open to property owners including landlords and second-home owners, but the air to air grant is for residential properties only, not business premises (Sources: expertsure.com; Ofgem).

Does an air to air heat pump provide hot water? No. It heats the air in your rooms directly, so you will need a separate hot water solution such as an electric cylinder, and the scheme requires your home’s hot water demand to be covered (Sources: Daikin UK; Ofgem installer guidance V5).

What if I live in Scotland or Northern Ireland? The Boiler Upgrade Scheme covers England and Wales only. Scotland and Northern Ireland run separate schemes, so check the current offer in your nation before assuming the same amounts apply (Source: Ofgem).

How do I get the air to air heat pump grant in the UK? The air to air heat pump grant gives GBP2,500 off through the Boiler Upgrade Scheme. To claim the air to air heat pump grant, use an MCS-certified installer who deducts it from your quote.

Sources

• The Boiler Upgrade Scheme (England and Wales) (Amendment) Regulations 2026, legislation.gov.uk
• Boiler Upgrade Scheme: guidance for installers, version 5 (April 2026), Ofgem
• Boiler Upgrade Scheme: information for property owners, Ofgem
• Boiler Upgrade Scheme funding hub, Daikin UK
• Changes to Boiler Upgrade Scheme come into effect, oilinstaller.co.uk, June 2026
• Homeowners warned £2,500 heating grant could cost them £3,400, Grimsby Telegraph, August 2026 (BOXT cost estimates)
• Boiler Upgrade Scheme extended, Government Business, November 2025 (DESNZ announcement)

The bottom line

The £2,500 air to air heat pump grant is real, it started on 28 April 2026, and your MCS-certified installer claims it as an upfront discount under the Boiler Upgrade Scheme. It suits homes without a wet central heating system, especially flats and smaller properties. The two things people get wrong are the amount (£2,500, not £7,500) and the hot water (air to air systems do not provide it, so budget for a separate solution). Get three itemised quotes, confirm the grant appears on each, and check the current rules on GOV.UK and Ofgem before you sign.

Last reviewed: 11 October 2026

By TheSolarCost Editorial Team