Air-to-air heat pumps became eligible for the £2,500 Boiler Upgrade Scheme grant from 21 July 2026. They provide efficient heating AND cooling. Here’s everything you need to know about costs, grants and whether they’re suitable for your home.
Air-to-air heat pumps are now eligible for the Boiler Upgrade Scheme grant. The £2,500 voucher applies to residential properties in England and Wales through MCS-certified installers. No income test applies.
An air-to-air heat pump extracts heat from outdoor air and transfers it into your home as warm air — the same technology as a modern air conditioning unit, but designed to provide efficient heating as its primary function. In summer, the same unit can reverse to provide cooling.
Important distinction: Air-to-air heat pumps do NOT provide hot water. They replace the space-heating function of a gas boiler but not the hot water cylinder. If you currently get hot water from your boiler, you will need a separate hot water solution (immersion heater, solar thermal, or a different heat pump type).
| Feature | Air-to-air | Air-to-water |
|---|---|---|
| BUS grant | £2,500 | £7,500 |
| Hot water? | ❌ No | ✅ Yes |
| Cooling? | ✅ Yes | ❌ Usually no |
| Typical cost installed | £3,000–£7,000 | £8,000–£15,000 |
| Works with radiators? | No — air distribution | Yes — standard radiators |
| Best for | Open-plan spaces, flats, secondary heating | Full home heating replacement |
Yes, from 21 July 2026. The Boiler Upgrade Scheme now includes residential air-to-air heat pumps at £2,500 per installation. Your MCS-certified installer applies for the voucher on your behalf.
Only partially. An air-to-air heat pump can replace your boiler for space heating (warming the rooms) but does not provide hot water. You would need a separate solution for hot water, such as a hot water heat pump, solar thermal or immersion heater.
They work best in well-insulated properties and open-plan spaces. Draughty older properties may see limited benefit. They are particularly popular in newer builds, flats and properties that are already fairly airtight.