The Boiler Upgrade Scheme now covers air conditioning — specifically, heat pump systems that can both heat and cool homes. As ACR Journal reports, the change brings air-to-air heat pumps — often marketed as air conditioning — under the same £7,500 grant that already applies to air-to-water heat pumps. For homeowners who have resisted heat pumps because they also want cooling in summer, this is the door opening.
What the scheme change means
Until now, the Boiler Upgrade Scheme only covered wet heat pump systems that connect to radiators or underfloor heating. Air-to-air systems — which use refrigerant to heat and cool rooms directly via indoor units — were excluded. That has changed. The grant now applies to any heat pump that meets the scheme’s efficiency criteria, regardless of whether it also provides cooling. The £7,500 figure remains the same, and the scheme runs until 31 March 2028 for homeowners in England and Wales.
Who qualifies — and who doesn’t
Eligibility follows the existing Boiler Upgrade Scheme rules. You must own your home (or be a self-builder or small landlord) in England or Wales. The property must have a valid EPC with no outstanding recommendations for loft or cavity wall insulation. The system must be installed by an MCS-certified installer. Crucially, the grant is for replacing fossil fuel heating — gas, oil, LPG or electric — not for adding cooling to an existing heat pump. If you already have a heat pump, you cannot claim for a second one just to get air conditioning.
The catch is that air-to-air heat pumps are less common in UK homes than air-to-water systems. ACR Journal also covered a recent retrofit where a household in a 1930s semi-detached home replaced an old gas boiler with an air-to-air heat pump system. The homeowners reported lower bills and the ability to cool bedrooms in summer — something they had never had before. The article noted that installation took three days and required no new pipework or radiators.
What it costs a typical 3-bed semi
For a typical 3-bed semi-detached home using 12,000 kWh of gas per year for heating, an air-to-air heat pump installation costs between £8,000 and £15,000, depending on the number of indoor units and complexity of the install. The £7,500 grant brings the net cost down to £500–£7,500. Running costs depend on electricity prices, but at current rates (around 24p/kWh for electricity), the heat pump can be 3–4 times more efficient than a gas boiler, meaning annual heating bills could fall by 30–50%. Cooling in summer adds minimal extra cost — typically £50–£100 per year for occasional use.
EPC impact is significant. A gas boiler typically scores a band D or C. An efficient air-to-air heat pump can lift a home to band B or even A, depending on the property’s insulation and fabric. However, the EPC methodology currently treats air-to-air systems less favourably than air-to-water for heating, so homeowners should check with their assessor before assuming a full band uplift.
Grants and support available
Beyond the Boiler Upgrade Scheme, homeowners may also qualify for ECO4 (for low-income households or those on certain benefits) or the Home Upgrade Grant (HUG2) for off-gas-grid properties. These can cover insulation improvements that make heat pumps work more efficiently. The Boiler Upgrade Scheme application is straightforward: your installer applies on your behalf, and the grant is deducted from the invoice. You do not handle the money yourself.
What to do next
If you are considering a heat pump that also provides cooling, contact at least three MCS-certified installers for quotes. Ask specifically about air-to-air systems and confirm they are registered for the Boiler Upgrade Scheme. Check your EPC for insulation recommendations — addressing those first will reduce the size and cost of the heat pump you need. Applications for the grant are open now and will close on 31 March 2028, or earlier if the allocated funding runs out. Given the high demand for heat pump grants in 2024–25, acting sooner rather than later is wise.
Frequently Asked Questions
No. The grant only covers heat pump systems that provide heating. Pure air conditioning units that cannot heat do not qualify. The system must be a reversible heat pump that meets the scheme's minimum efficiency standards.
Yes, if you replace the gas boiler with an air-to-air heat pump system. The grant is for replacing fossil fuel heating, not for adding cooling to an existing system. You must remove the old boiler or permanently disable it.
Look for MCS-certified installers who list air-to-air heat pumps on their accreditation. The MCS website has a searchable directory. Ask specifically if they have experience with the Boiler Upgrade Scheme application process.
