Grant rules checked against Ofgem on 15 October 2026
The £2,500 air-to-air heat pump grant
Published and last updated 15 October 2026
Air-to-air heat pumps get £2,500 off the cost of installation through the Boiler Upgrade Scheme, for homes in England and Wales only. They warm rooms with indoor units rather than radiators and don't heat your hot water, which is why the grant is lower than the £7,500 for air-to-water systems.
What's the difference between air-to-air and air-to-water?
Air-to-air heat pumps blow warm air from indoor units, while air-to-water heat pumps heat water for radiators and your hot water cylinder.
| Feature | Air-to-air | Air-to-water |
|---|---|---|
| How it heats | Warm air from indoor wall units | Hot water through radiators or underfloor heating |
| Hot water | No, needs a separate solution | Yes, via a hot water cylinder |
| Cooling in summer | Usually yes | Not usually |
| Grant | £2,500 (homes only) | £7,500, or £9,000 for eligible off-gas homes |
| Best for | Flats, smaller homes, homes with electric heating | Most homes with wet central heating |
Who can get the air-to-air grant?
Homeowners and private landlords in England and Wales replacing fossil fuel or electric heating can get it; business premises can't. The same property, ownership and installer rules apply as the main scheme. See the full eligibility rules.
Does an air-to-air system have to heat the whole home?
Your installer must design it to meet the property's full space heating needs, so one unit in the lounge won't qualify on its own. Hot water needs a separate solution such as an electric cylinder; ask your installer how this fits the scheme rules.
Is air-to-air or air-to-water better for me?
Air-to-water usually suits homes with existing radiators and a hot water cylinder, while air-to-air can suit flats and homes with electric heating. Read Is my home suitable? or check your eligibility.
Frequently asked questions
Can I get £7,500 for an air-to-air heat pump?
No, the air-to-air rate is £2,500.
Can a business get the air-to-air grant?
No, residential properties only.
Does air conditioning count?
Only a heat pump system fitted by an MCS-certified installer as your main heating qualifies.
Can I combine air-to-air and air-to-water grants?
Ask your installer; the grant is per eligible installation.