The Boiler Upgrade Scheme (BUS) has been quietly expanded to cover air conditioning installations, a move reported exclusively by ACR Journal. The change, effective from November 2025, means homeowners can now claim grants for cooling systems alongside heat pumps, a departure from the scheme’s original focus on heating only.
What the policy change means
Until now, the BUS was strictly for heat pumps and biomass boilers. The inclusion of air conditioning, as ACR Journal reports, is a recognition that cooling is becoming a necessity in UK homes, particularly with rising summer temperatures. The grant amount remains at up to £7,500 per installation, though this is capped at one system per household.
Cost and grant details
The typical cost of installing air conditioning in a 3-bed semi is between £3,000 and £6,000, depending on the system and number of rooms. Under the expanded BUS, homeowners can claim up to £7,500, effectively covering the full cost for most installations. The scheme is administered by Ofgem, and applications must be made through a certified installer. The grant is available for air source heat pumps, ground source heat pumps, and now air conditioning units that meet minimum efficiency standards.
EPC impact and homeowner value
An EPC rating measures energy efficiency, and air conditioning can improve it by reducing reliance on gas or electric heaters during summer. However, the impact is modest: a typical system might add 5-10 points to the EPC score, potentially moving a home from band D to C. For homeowners considering the switch, the grant makes air conditioning a more viable option, especially when combined with solar panels or battery storage. The expanded BUS also dovetails with the ECO4 scheme, which offers additional funding for low-income households.
What this misses
But the policy shift is not without caveats. The grant is only available for systems installed by MCS-certified installers, and the air conditioning unit must meet a Seasonal Energy Efficiency Ratio (SEER) of at least 6.0. That rules out many cheaper units. Also, the scheme is first-come, first-served, with funding limited to £150 million per year. Homeowners in flats or listed buildings may face additional planning hurdles.
Next steps for readers
If you are considering air conditioning, check whether your installer is MCS-certified and registered with the BUS. Apply through the Ofgem portal as soon as possible, as funding is limited. For those on low incomes, combine the BUS grant with ECO4 funding for maximum savings. The deadline for applications is 31 March 2027, but early action is advised given the capped budget.
Frequently Asked Questions
For a typical 3-bed semi-detached house in the UK, installing air conditioning costs between £3,000 and £6,000, depending on the system and number of rooms. The Boiler Upgrade Scheme now offers grants of up to £7,500, which can cover the full cost for most installations.
Yes, as of November 2025, the Boiler Upgrade Scheme has been expanded to cover air conditioning installations alongside heat pumps. You can claim up to £7,500 per household, but the system must be installed by an MCS-certified installer and meet a minimum Seasonal Energy Efficiency Ratio (SEER) of 6.0.
Air conditioning can modestly improve your EPC rating by reducing reliance on gas or electric heaters during summer, typically adding 5-10 points to the score. This could move your home from band D to C, but the impact is limited compared to other energy efficiency measures.
The grant is available for air conditioning units installed by MCS-certified installers, with a SEER of at least 6.0. Applications are made through Ofgem, funding is capped at £150 million per year on a first-come, first-served basis, and the scheme runs until 31 March 2027. Homes in flats or listed buildings may face additional planning hurdles.
Yes, the expanded BUS dovetails with the ECO4 scheme, which offers additional funding for low-income households. Combining both can maximize your savings, especially if you also install solar panels or battery storage to further reduce energy costs.
