£2,500 Air Conditioning Grant UK 2026 | Boiler Upgrade Scheme Guide

Last updated: 12 May 2026

Air Conditioning Units Now Included in the BUS Scheme: What UK Homeowners Need to Know

If you've been thinking about upgrading your home's heating and cooling system, there’s big news. As of 28 April 2026, air conditioning systems — known technically as air-to-air heat pumps — are now officially eligible for a £2,500 grant under the UK government's Boiler Upgrade Scheme (BUS).

That is a major shift. For the first time, homeowners in England and Wales can get government funding towards a system that delivers both heating in winter and cooling in summer — all from a single, energy-efficient unit.

Quick Summary: The 2026 BUS Update at a Glance

• £2,500 grant for air-to-air heat pumps (AC units that also heat).
• £7,500 grant still available for traditional air-to-water heat pumps.
• Live now — applications under the new rules are being accepted.
• EPC rules relaxed — you no longer need a valid EPC with no recommendations to apply.
• Scheme extended to 2030 as part of the £15bn Warm Homes Plan.

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What is the Boiler Upgrade Scheme (BUS)?

The Boiler Upgrade Scheme is a government grant administered by Ofgem. It helps homeowners switch from fossil fuel heating (like gas or oil boilers) to low-carbon alternatives by knocking thousands of pounds off the upfront cost. At Blue Ape Renewables, we handle the entire application process for you, deducting the grant directly from your invoice.

Until recently, the scheme only covered "wet" systems. Now, it includes air-to-air technology, which is perfect for flats, home offices, and properties where installing new radiators and pipework isn't practical. To see how this fits into your wider energy goals, read our guide on creating a fully electric, gas-free home.

So... Air Conditioning Units Are Officially Included Now?

Yes. Under SI 2026/390, air-to-air heat pumps are now eligible for residential properties. This matters because these systems:

• Provide heating and cooling from one unit.
• Are typically more affordable than air-to-water systems.
• Are quicker to install with minimal disruption to your flooring or walls.

"An air-to-air heat pump is essentially what we call air conditioning — but modern and reversible. It extracts heat from the outside air (even in winter) to warm your home, and reverses the process to cool it in summer."

How Much is the Grant?

The grant for air-to-air heat pumps is £2,500. While this is lower than the £7,500 offered for air-source heat pumps, the installation cost for AC-style units is also significantly lower. This grant often covers a huge portion of a single-room or dual-room setup.

Who is Eligible for the £2,500 Grant?

To qualify for the new air-to-air grant, you must:

• Own the property (homeowners and private landlords are eligible).
• Be in England or Wales (Scotland has a separate scheme).
• Replace an existing fossil fuel system (Gas, Oil, LPG) or direct electric heating (Storage heaters).
• Use an MCS-certified installer like Blue Ape Renewables.

Note: You cannot keep your old gas boiler as a backup; it must be fully decommissioned to receive the grant.

Combine with Solar for Maximum Savings

An air-to-air heat pump works beautifully alongside Solar PV and Battery Storage. In the summer, your solar panels can run your air conditioning for free. In the winter, your battery can store cheap overnight electricity to run your heating during the day. We can design a complete energy-independence package tailored to your home.

Frequently Asked Questions

Can I get the grant for an existing AC unit?
No, the grant is only for new installations and cannot be claimed retrospectively.

Do I need planning permission?
Usually not. Most air-to-air units fall under "Permitted Development," provided they meet certain distance requirements from boundaries.

How long does the application take?
We handle the paperwork, and voucher issue typically takes 3-4 weeks.

Blue Ape Renewables — MCS, NAPIT and RECC certified | Octopus Energy Trusted Partner | Based in Southport, serving the UK.