With energy prices rising and environmental concerns growing, improving energy efficiency in homes and businesses is more important than ever. One often-overlooked opportunity lies in modern air conditioning systems—many of which now function as efficient heat pumps, offering both cooling in the summer and heating in the winter. Recognising the year-round value of these systems, the UK government offers several grants and funding schemes to help with installation costs. Notably, the Boiler Upgrade Scheme (BUS) now includes some traditional air conditioning units that meet specific efficiency and installation criteria.
The Boiler Upgrade Scheme (BUS)
The main source of government support for low-carbon heating systems is the Boiler Upgrade Scheme (BUS). Designed to accelerate the transition away from fossil fuel boilers, BUS provides:
- £7,500 towards the installation of an air source heat pump
- £7,500 towards a ground source heat pump
- £5,000 towards a biomass boiler
To qualify, the system must meet strict efficiency standards, and hybrid systems (such as those combining a heat pump with a gas boiler) are not eligible.
Air Conditioning and Heat Pump Eligibility
While traditional air conditioning units have not typically been eligible for government funding, the picture is changing. If your air conditioning system also functions as a reversible heat pump, it may qualify under the Boiler Upgrade Scheme.
To be eligible, the system must:
- Provide both heating and cooling (i.e. operate as a heat pump)
- Have a high energy efficiency rating, typically A++ or above
- Be installed by a Microgeneration Certification Scheme (MCS) accredited installer
This means that many air-to-air heat pumps, which resemble traditional air conditioning units, could be eligible for funding, provided they are used primarily for heating and meet other BUS criteria.
Other Air Conditioning Grant Options
In addition to BUS, several other schemes support energy efficiency upgrades:
Local Authority Schemes & Home Upgrade Grant (HUG)
- Support low-income and off-grid households
- Offer help with cleaning heating systems and home insulation
- Availability and amounts vary by region
Scotland: Home Energy Scotland
- Offers grants and interest-free loans for clean heating
- Up to £15,000 in combined support for eligible households
- Includes support for renewable heating systems like heat pumps
Step-by-Step Guide: How to Apply
Your 4 simple steps to apply.
- Check Eligibility: Use online tools or speak to an MCS-accredited installer to confirm if your system qualifies.
- Choose a Qualified Installer: The installer must be registered with the MCS and approved to handle government grant applications.
- Installer Applies on Your Behalf: For schemes like BUS, the installer manages the application, including paperwork and documentation.
- Await Approval and Installation: Once approved, the grant is applied directly to your installation cost, reducing your upfront expenses.
Things to Consider
Before signing up, we recommend considering the following four things:
1. Energy Efficiency First
Your property must typically have an Energy Performance Certificate (EPC) with no outstanding recommendations for insulation.
2. Hybrid Systems Not Eligible
Systems combining a gas boiler with a heat pump are excluded from BUS.
3. Residential and Commercial Properties
Some grants are available for small businesses as well, though eligibility and amounts may differ.
4. Medical or Health-Related Needs
While direct funding for air conditioning due to health conditions (e.g. MS) is rare, additional support may be available in specific cases through local authorities.
How We Can Help
As energy efficiency becomes a top priority for both cost savings and environmental impact, upgrading to a modern air conditioning system that also functions as a heat pump is a smart, future-ready choice. With significant government support now available through schemes like the Boiler Upgrade Scheme, it’s an ideal time to consider investing in systems that offer both comfort and sustainability.
At PRA Air Conditioning, we combine expert knowledge with a commitment to quality service, whether you’re looking to upgrade your home system or manage air conditioning across a larger commercial site. From initial consultation through to installation, maintenance, and repairs, our team is here to guide you every step of the way. We build long-term relationships with our clients by focusing on reliability, professionalism, and tailored support.
If you’re considering taking advantage of government funding for an energy-efficient air conditioning system, get in touch with us today. We’ll help you navigate the options and deliver a solution you can trust.
FAQ
Who is eligible for the air source heat pump grant (Boiler Upgrade Scheme)?
Homeowners in England and Wales may be eligible if they are replacing fossil fuel or electric heating systems (but not an existing heat pump).
To qualify:
- The installation must be carried out by an MCS-accredited installer
- The property must have a valid Energy Performance Certificate (EPC) with no outstanding insulation recommendations
- The property must not be a new build, unless it is a self-build
Who is eligible for the Home Upgrade Grant (HUG)?
This scheme supports low-income households in England who:
- Are off the gas grid
- Live in a property with an EPC rating of D, E, F or G
- Reside in a participating local authority area
The scheme targets the least energy-efficient homes to help reduce energy bills and carbon emissions.
Who is eligible for the government insulation grant?
Eligibility depends on the specific scheme (such as ECO4) but typically includes:
- Low-income households or those receiving certain means-tested benefits
- Homes with poor energy efficiency ratings
- Additional criteria may apply based on property type, ownership, or location
Are ECO grants still available?
Yes, the ECO4 scheme is currently available in England, Scotland, and Wales. It offers support for a range of energy efficiency improvements, including:
- Insulation
- Heating upgrades
- Renewable energy systems
Is the ECO scheme free?
In many cases, ECO4 grants cover the full cost of installation. However, some households may need to contribute towards the cost depending on eligibility and property requirements. You can check eligibility using official online grant checkers.
Is the Green Homes Grant still available?
No, the Green Homes Grant closed in March 2021. Its primary replacement for heat pump funding is the Boiler Upgrade Scheme.
Is ECO4 available in Scotland?
Yes, the ECO4 scheme is available in Scotland, as well as in England and Wales, supporting eligible households with home energy improvements.
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