Yes, there’s now a grant for air-to-air heat pumps. Since 28 April 2026, the Boiler Upgrade Scheme gives £2,500 towards an air-to-air heat pump in homes in England and Wales. The money comes off your installer’s quote at the start, so you never pay the full price and wait for a refund. To qualify you need to own the home, be replacing fossil fuel or electric heating, and use an MCS-certified installer.
Before this change, air-to-air systems were left out of the scheme entirely, which shut out a lot of flats and homes on electric heaters. Here’s how the grant works, who can get it and what it means for the price of your installation.
How much is the air-to-air heat pump grant?
The grant is £2,500 per property. For comparison, here’s what the Boiler Upgrade Scheme pays towards each technology:
| Technology | Grant | Notes |
|---|---|---|
| Air-to-air heat pump | £2,500 | Homes only. Added on 28 April 2026 |
| Air source (air-to-water) heat pump | £7,500 | Extra £1,500 until March 2027 for homes on oil or LPG with no mains gas |
| Ground source heat pump | £7,500 | Same oil and LPG uplift applies |
| Biomass boiler | £5,000 | Rural, off-gas-grid homes only |
The air-to-air figure is lower because the systems cost far less to fit. There’s no hot water cylinder or radiator circuit, and a single-room system often costs under £3,000 in total.
Who is eligible for the grant?
You’re likely to qualify if all of these are true:
- You own the property. That includes a second home or a home you let to tenants.
- You’re replacing a fossil fuel or electric heating system, such as a gas boiler, oil, LPG, storage heaters or electric panel heaters.
- The property is in England or Wales.
- Your installer is MCS-certified, and the system meets the scheme’s efficiency standards.
You can’t use it for social housing, most new builds still being built, a home that’s already had government funding for a heat pump, or to replace an existing low carbon system. It’s one grant per property, so you can’t claim £2,500 for an air-to-air system and then £7,500 for an air-to-water one later.
Do I still need an EPC?
No. The requirement for a valid Energy Performance Certificate was removed on 28 April 2026. If your home already has one, the installer uses it. If not, they’ll supply other evidence instead, usually a recent energy bill showing your current fuel and photos of the existing heating.
How do I apply?
You don’t apply yourself. Your installer applies to Ofgem on your behalf once you’ve agreed a quote. Under the 2026 rules, they have to take the £2,500 off the price you’re quoted, so the discount shows on your quote and invoice from the start. The system then needs to be installed and commissioned within 120 days of the application.
In practice, it looks like this:
- Ask for a quote and tell your installer you’d like to use the Boiler Upgrade Scheme.
- They check you’re eligible and that the system qualifies.
- Ofgem contacts you to confirm you agreed to the application.
- The system is fitted, and you pay the price minus the grant.
What does an air-to-air heat pump cost after the grant?
Here’s how the grant can change typical prices, based on the installed costs we see across Yorkshire, the North West and the Midlands in 2026:
| System | Typical installed cost | After £2,500 grant |
|---|---|---|
| Single-room split | £1,600 to £2,800 | Up to £2,500 less, depending on the system |
| Small multi-split (2 to 3 rooms) | £3,200 to £6,500 | £700 to £4,000 |
| Larger multi-split (4 or more rooms) | £5,000 to £9,000+ | £2,500 to £6,500+ |
The grant can’t be more than the cost of the work, so on a very simple single-room job it may cover most of the price. Fixed heat pumps installed in homes are also zero-rated for VAT until 31 March 2027, which helps on top. Our installation cost guide breaks down what affects the price.
Is there a grant if I live in Scotland?
The Boiler Upgrade Scheme covers England and Wales only. Scotland has its own support through Home Energy Scotland, which has different rules, so it’s worth checking with them directly.
Is the grant worth switching for if I have a gas boiler?
That depends on how you plan to use the system. To qualify, the heat pump has to replace your existing heating, so it suits homes where a few rooms make up most of the living space, like a flat or a small bungalow. In a larger house on gas, you’d need something else to heat your water and the rooms without an indoor unit. There, an air source heat pump with the £7,500 grant, or a new efficient boiler, may make more sense. We compare the options in our air-to-air vs air-to-water guide.
Who gets the most from the grant?
The biggest winners are homes heated by electricity. Swapping storage or panel heaters for an air-to-air heat pump can cut the cost of heating those rooms by well over half, and the grant now pays for a large part of the installation. If that’s your home, our guide to how air-to-air heat pumps work covers running costs in more detail.
How do I get started?
Request a free quote and tell us which rooms you’d like to heat. We’ll survey your home remotely, recommend the right system, and let you know whether your installation can go through the Boiler Upgrade Scheme. You can also read more about our air-to-air heat pump and air conditioning installations.
