M&E Contrax Resources

The New £2,500 Air Conditioning Grant

Resource Highlights:

The Government announced a £2,500 discount for air-to-air heat pumps as part of expanded BUS support from 2027.

BUS is an installer-led scheme, meaning the installer applies on your behalf where eligible.

Your installer must meet the scheme requirements, which we do, and eligibility should always be confirmed at survey stage.

2026 update on the air-to-air heat pump discount and how it works

In November 2025, the UK Government announced that the Boiler Upgrade Scheme (BUS) would be expanded to include a £2,500 discount towards the cost of installing an air-to-air heat pump, also known as modern air conditioning. This is aimed at supporting efficient heating in winter alongside cooling in summer and will be available in 2027.

For the wider BUS scheme and how it works overall, see our main guide here.

For further grants and funding, read our guide on the Government’s UK Warm Homes Plan 2026 here.

What is the grant actually for?

This support relates specifically to air-to-air heat pumps, which:

cool rooms in summer

heat rooms in winter

do not replace a wet central heating system (radiators and hot water cylinder)

It is designed to help households adopt efficient, low carbon heating for room-by-room comfort, particularly where a full heating system replacement is not the route being taken.

Air-to-air vs air-to-water, what is the difference?

This is one of the most common points of confusion:

Air-to-air heat pump (air conditioning)

Heats and cools rooms with blown air

Often installed room-by-room

Does not directly heat radiators or a hot water cylinder

Air-to-water heat pump

Heats water for radiators, underfloor heating, and hot water

Covered by the main BUS heat pump grants under the core scheme

Usually part of a full heating system upgrade

If you are looking at a full wet heating replacement, your starting point should be our BUS guide here.

Who is it likely to apply to?

BUS support is typically associated with properties in England and Wales, and eligibility depends on scheme rules at the time of application.

The safest way to look at this is:

The discount may be available for eligible properties, subject to current BUS rules

Your installer should confirm whether your property qualifies and whether all scheme requirements are met

Installations associated with government support generally require the right accreditation route (for example, MCS certification) and compliant installation standards (which we have!)

How the process usually works

BUS style support is installer-led, which means:

your electricity tariff

You book a survey and receive a correctly sized design and quote

Eligibility is confirmed against the current scheme rules

Where applicable, the installer applies on your behalf and the discount is applied in line with the scheme process

The system is installed, commissioned, and handed over with controls and guidance

Simple overview

If you want the simplest approach, follow this order:

Identify the room or rooms you want to heat and cool

Get a proper survey and sizing recommendation

Ask for a written quote that confirms what is included, electrics, making good, commissioning

Confirm whether the £2,500 air-to-air discount applies to your property under the current BUS rules

Proceed with installation and commissioning, with handover included

This avoids the most common issues, assuming eligibility, choosing the wrong size unit, or comparing quotes that include different scopes of work.

Last reviewed: April 2026. Grant amounts and eligibility rules change — always verify current figures with your installer or at gov.uk before making decisions.

Frequently Asked Questions

No. The air-to-air discount relates to air conditioning style air-to-air heat pumps. The main BUS heat pump route relates to air-to-water and ground source systems used for wet heating and hot water.

BUS support is typically installer-led, so the installer applies on your behalf where eligible.

Government-backed heat pump support usually requires the correct accreditation route. Your installer should confirm compliance and eligibility at survey stage.