The Boiler Upgrade Scheme (BUS) will now cover air conditioning systems that use heat pump technology, a shift that could cut installation costs by £2,500 for UK homeowners. The change, reported by The Eco Experts, follows a quiet expansion of the grant’s scope earlier this year. For households sweltering through 30°C summers and facing rising gas bills, the timing is deliberate.
As The Eco Experts reported, the Department for Energy Security and Net Zero confirmed that air-to-air heat pumps, essentially reversible air conditioning units, now qualify for the same £2,500 voucher as ground and air source heat pumps. The catch: only systems that provide both heating and cooling are eligible, not standalone AC units. Ofgem, which administers the scheme, updated its guidance in June 2024 to reflect this.
Who qualifies, and who doesn’t
Eligibility mirrors the existing BUS rules. Your property must have a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation. The system must be installed by an MCS-certified installer, and the property must be off the gas grid or replacing an existing fossil fuel heating system. Flats and houses with existing heat pumps are excluded.
For a typical 3-bed semi requiring a 5kW air-to-air heat pump, installation costs hover between £3,000 and £6,000, according to Energy Saving Trust estimates. The £2,500 grant reduces that to £500–£3,500, comparable to a new gas boiler. But homeowners on mains gas may not qualify unless they are replacing an oil, LPG, or electric heating system.
What it costs a typical 3-bed semi
Running costs depend on efficiency. Air-to-air heat pumps have a Seasonal Coefficient of Performance (SCOP) of around 3.0 to 4.0, meaning they produce 3–4 kWh of heat for every 1 kWh of electricity. At current electricity prices of 28p/kWh (Oct 2024 cap), heating a 12,000 kWh annual demand costs about £840–£1,120. That is higher than a gas boiler at 6p/kWh (£720), but lower than electric storage heaters at £3,360.
Cooling mode adds 200–400 kWh per summer, costing £56–£112. The grant does not cover that extra use, but the comfort benefit is real: overheating is now a recognised health risk in UK homes, with the 2022 heatwave causing over 3,000 excess deaths, according to the UK Health Security Agency.
EPC impact and resale value
An air-to-air heat pump can improve your EPC rating by up to 5 points, particularly if replacing an old electric or oil system. However, the EPC methodology currently penalises systems that provide only heating, not cooling, a quirk that may change under the government’s 2025 EPC reform consultation. For now, homeowners gain most in off-gas-grid homes where heating costs drop by 30–40%.
The catch is timing. The BUS has a capped budget of £450 million until 2028, and as of August 2024, only 15,000 of the 90,000 available vouchers had been claimed, per Ofgem data. The expansion to air conditioning could accelerate uptake, but installers warn of backlogs. MCS-certified heat pump engineers are already booked 8–12 weeks ahead in many regions.
How to apply, and by when
Applications open through Ofgem’s BUS portal. You need a quote from an MCS-certified installer, your EPC certificate, and proof of property ownership or landlord consent. The voucher is valid for 12 months, and installation must be completed within that period. Grants are first-come, first-served, so early application is wise.
Households on standard variable tariffs can apply now through gov.uk. The scheme runs until 31 March 2028, but funding may run out sooner if demand spikes. For those replacing a broken fossil fuel system, the £2,500 discount makes air-to-air heat pumps the cheapest low-carbon option, and the only one that keeps you cool in July.
Frequently Asked Questions
No. The grant only covers fixed air-to-air heat pump systems that provide both heating and cooling. Portable or window-mounted AC units do not qualify.
In most cases, no, they fall under permitted development. But if you live in a conservation area or a listed building, check with your local planning authority first.
