The government has announced new £2,500 grants for air-to-air heat pumps, in a move designed to help more households install systems that can heat homes in winter and cool them in summer.
The funding forms part of an expansion of the Boiler Upgrade Scheme, aimed at reducing the upfront cost of low-carbon heating technology.
Ministers say the changes will make heat pumps a more practical option for a wider range of homes, including flats and smaller properties.
Article continues belowWhat the air-to-air heat pump grant is for
The £2,500 grant will help households cover the cost of installing air-to-air heat pumps, which extract heat from outside air and distribute it indoors.
Unlike traditional heating systems, they can also be reversed to provide cooling during warmer months, operating in a similar way to air conditioning.
The scheme is intended to reduce the upfront cost of switching to low-carbon heating and increase uptake across different types of homes.
Who the air-to-air heat pump grant applies to
The new heat pump grant is aimed at domestic properties installing eligible air-to-air heat pump systems through certified installers.
It is expected to be particularly relevant for flats and smaller homes, where traditional wet heating systems can be more difficult or expensive to install.
All installations must be carried out by approved Microgeneration Certification Scheme (MCS) installers in order to qualify for the funding.
What could an air-to-air heat pump cost after the grant?
Air-to-air heat pumps are among the most affordable heat pump systems, costing on average between £2,200 and £8,800, depending on the size of the home and energy demand.
Installation costs typically range from £350 to £1,700, as the systems are generally quicker and simpler to install than other heat pump types because they do not require radiators or a wet heating system.
With the new £2,500 government grant, the upfront cost could fall to a maximum of £6,300. For lower cost systems, the new grant could make it completely free, depending on the size of the system and installation requirements.
How to apply for the grant
Applications for the £2,500 heat pump grant are not made directly by homeowners. Instead, the scheme is handled through approved installers under the Microgeneration Certification Scheme (MCS).
Homeowners must first choose an MCS-certified installer, who will assess the property and provide a quote for an eligible air-to-air heat pump system. If the installation qualifies, the installer will apply for the grant on the homeowner’s behalf and deduct the £2,500 from the upfront cost.
The funding is paid directly to the installer once the installation is complete and all requirements have been met, meaning households do not need to claim the money back themselves.
The expansion marks a further push by ministers to accelerate the shift towards low-carbon home heating while making cooling technology more accessible to UK households.
