£2,500 grants for air conditioning will land in UK homes before summer, the first time the government has directly subsidised cooling. The i Paper broke the story, reporting that the scheme targets households most at risk from overheating, with applications opening in April. For a nation built for drizzle, not 40°C days, this marks a shift.
As The i Paper reports, the grants cover up to half the installation cost, capped at £2,500, and are part of a wider £20 million pilot. But here’s the rub: the scheme runs alongside the Boiler Upgrade Scheme, which offers £7,500 for heat pumps, appliances that can also cool your home in summer. The government is effectively paying for two different technologies to do the same job.
Who qualifies, and who doesn’t
Eligibility is tight. Only households in areas identified as overheating hotspots, with an EPC rating of D or below, and a household income under £30,000, can apply. That rules out most of the 28 million homes in England. Ofgem data suggests fewer than 10,000 homes will benefit in the first year.
The catch is timing. Applications open in April, but installers are already reporting backlogs. The Microgeneration Certification Scheme (MCS) accredited fitters who can install air conditioning are far fewer than those for heat pumps. Homeowners who wait until June may find no slots left before the next heatwave.
What it costs a typical 3-bed semi
Installing a multi-split air conditioning system in a three-bedroom semi typically costs £4,000–£6,000. The £2,500 grant cuts that to £1,500–£3,500. But running costs add up: a 3.5 kW unit running for 8 hours a day over a 30-day heatwave uses about 840 kWh, costing roughly £170 at current price cap rates (24.5p/kWh). Over a summer, that’s £200–£300 extra on your electricity bill.
Compare that to a heat pump. A typical air-to-air heat pump costs £8,000–£12,000 installed, but the £7,500 Boiler Upgrade Scheme grant brings it to £500–£4,500. It provides cooling in summer and heating in winter, and can improve your EPC rating by two bands if replacing an old gas boiler. The running cost for cooling is similar to air conditioning, but the heating season saves you £200–£400 a year versus gas.
Heat pumps vs air conditioning, the EPC angle
Energy Performance Certificates measure heating efficiency, not cooling. Installing air conditioning alone does nothing for your EPC rating. A heat pump, however, directly boosts the heating efficiency score, lifting a D-rated home to a C or even B. For homeowners planning to sell or rent, that difference matters: a C-rated home sells for 5–8% more on average, according to estate agent data.
Yet the government’s own figures show heat pump installations are running at 60,000 a year, far short of the 600,000 target by 2028. Offering air conditioning grants risks slowing that momentum. The Energy Saving Trust has warned that households may choose air conditioning now, only to need a heat pump later when gas boilers are phased out from 2035.
What to do and by when
If your home is overheating and you qualify for the grant, apply as soon as applications open in April. Check your eligibility via gov.uk and get at least three MCS-certified quotes. But think long-term: if you plan to stay in your home for more than five years, a heat pump with the £7,500 grant may be the smarter investment. It cools, heats, and lifts your EPC rating, all in one box.
For those who don’t qualify, passive measures like reflective blinds, loft insulation, and external shading cost less and cut cooling needs by up to 30%. Start before May. Summer comes early now.
Frequently Asked Questions
No. The schemes are separate and you can only claim one per property. If you install air conditioning with the £2,500 grant, you cannot later claim the £7,500 heat pump grant for the same home.
No. EPC ratings are based on heating efficiency and insulation, not cooling. Air conditioning has no direct impact on your EPC score, unlike a heat pump which can improve it by up to two bands.
