Only 1 in 5 eligible households has claimed a free air conditioning grant under the government’s Energy Company Obligation (ECO4) scheme, according to data published by the Energy & Climate Intelligence Unit (ECIU). That leaves an estimated 180,000 grants unclaimed, enough to cool a small city.
As reported by the ECIU, the grants cover the full cost of installing a fixed air-to-air heat pump (often called a ‘reversible air conditioner’), a system that can both cool and heat a home. The scheme is part of the broader ECO4 programme, which runs until March 2026.
Who qualifies, and who doesn’t
Eligibility is tighter than many assume. The grant is available only to households in England and Wales that receive one of the following: Pension Credit, Universal Credit, Child Tax Credit, or Income Support. The property must also have an EPC rating of D, E, F, or G. Private renters can apply, but only with their landlord’s written consent.
Scotland and Northern Ireland have separate schemes under ECO4-equivalent programmes, though uptake data is not yet published. Homeowners with an EPC rating of C or above do not qualify, even if they have a medical need.
The catch is that many eligible households simply do not know the grant exists. The ECIU survey found that 62% of low-income households had never heard of it. Energy suppliers are required to promote the scheme, but marketing has been patchy.
What it costs a typical 3-bed semi
A fixed air-to-air heat pump installation typically costs between £2,500 and £4,000. Under the ECO4 grant, the full cost is covered, including the unit, installation, and any necessary electrical work. For a household that currently relies on a portable air conditioner (which costs around £300–£600 and uses 1.5 kWh per hour), the annual electricity saving is roughly £120–£180, depending on usage.
But the bigger gain is comfort. Indoor temperatures can drop by 4–6°C during a heatwave, which reduces the risk of heat-related illness. The system also works in reverse. This provides efficient heating in winter, cutting gas use by up to 20% in a typical 3-bed semi, according to Energy Saving Trust estimates.
EPC impact, and why it matters
Installing a fixed air-to-air heat pump can improve an EPC rating by up to 5 points, particularly if it replaces an old electric storage heater or a portable unit. That can lift a property from an E to a D, or from a D to a C, a shift that typically adds £1,500–£3,000 to the property’s value, according to Nationwide Building Society research.
Yet most homeowners still think of air conditioning as a luxury. The ECIU data suggests the real barrier is not cost but awareness. Ofgem, which oversees the ECO4 scheme, has committed to a public awareness campaign starting in October, but critics say it should have happened sooner.
What this misses is that the grant also covers heat pumps that meet the higher Seasonal Energy Efficiency Ratio (SEER) standards. A unit with a SEER rating of 6.5 or above uses 40% less electricity than a standard portable unit, and qualifies for the higher EPC points.
How to apply, and by when
Applications are open now and run until 31 March 2026. Households should contact their energy supplier first, most suppliers have dedicated ECO4 teams. If the supplier does not offer the grant, the homeowner can apply through the government’s Simple Energy Advice service (gov.uk/simple-energy-advice).
For those who miss the ECO4 deadline, the Boiler Upgrade Scheme (BUS) offers £7,500 off a heat pump installation, but that grant is for primary heating systems, not cooling-only units. The free air con grant is a separate, better-funded route, but only if you act before the scheme closes.
Frequently Asked Questions
Yes, but only with your landlord's written consent. The landlord must also agree to the installation, and the property must have an EPC rating of D or below. The grant covers the full cost, so the landlord cannot charge you for the unit.
No. The grant covers installation only. Running costs depend on your electricity tariff and usage. A fixed air-to-air heat pump typically costs 30–50% less to run than a portable unit, but you will still pay for the electricity you use.
