Most people think of air conditioning as a luxury, so the idea of getting government money toward one sounds almost too good to be true. Not quite yet. The UK government announced plans to expand the Boiler Upgrade Scheme to include air-to-air heat pumps for the first time, which would mean a system that cools your home in summer and heats it in winter would qualify for a £2,500 grant. That funding is not live yet, but it is confirmed and worth understanding now, so you are ready when it opens.
If you’re based in Coventry, Leamington Spa, Warwick, or anywhere across Warwickshire, here’s what you actually need to know before you pick up the phone.

The grant itself comes through the Boiler Upgrade Scheme (BUS), which the UK government runs to push homeowners away from gas boilers and toward low-carbon heating systems. It has offered £7,500 toward air source heat pumps and ground source heat pumps for a few years now, but in November 2025, it announced two new categories: air-to-air heat pumps and heat batteries.
The air-to-air heat pump grant is worth £2,500, which is lower than the £7,500 offer for full central heating replacements, and there’s a good reason for that. Air-to-air systems cost significantly less to install in the first place.
For a flat or smaller home, the typical installation costs around £4,500, so the grant covers the majority of the upfront cost. For larger properties, it will cover a smaller proportion, but it still takes a meaningful amount off the bill.
The heat battery grant is also worth £2,500. Heat batteries are compact units that store energy as heat overnight, then release it during the day to warm your home. If you want to move away from gas entirely, pairing an air-to-air system with a heat battery gives you year-round heating and cooling without any reliance on the gas grid.
This is where a lot of people get confused, so it’s worth being clear.
An air-to-air heat pump is essentially what most people know as a modern air conditioning unit: the type with an outdoor unit on the wall and one or more indoor units inside. The difference from older, simpler AC systems is that it works both ways. In summer, it pulls heat out of your home to cool it down. In winter, it pulls heat from the outdoor air and brings it inside to warm the room.
This dual function is why the government classifies it as a low-carbon heating system rather than just a cooling appliance. It replaces the need for a gas boiler in the rooms it serves, and it uses electricity rather than burning fossil fuels.
It is worth noting that an air-to-air system does not provide hot water in the way a central heating boiler does. It heats and cools rooms through indoor fan units, so it works well in homes without a traditional radiator setup, in flats, open-plan spaces, extensions, and properties where running pipework throughout would be expensive or impractical.
If you also want to move away from gas for your hot water, that is where the heat battery comes in.
Not every property qualifies, and it is worth checking the key criteria before you get too far down the road. To be eligible for the air-to-air heat pump grant through the Boiler Upgrade Scheme, your property generally needs to meet the following conditions.
Your home must be in England or Wales. Scotland and Northern Ireland operate their own separate schemes with different rules and funding levels, so they fall outside the BUS entirely.
You must own the property. Both owner-occupiers and private landlords are eligible, but tenants cannot apply. If you rent out a property in Coventry and want to upgrade the heating system, you can still claim, even if it is not your main residence.
The system must replace an existing fossil fuel heating setup, such as a gas boiler, oil boiler, or LPG system. The old system must be fully removed or permanently decommissioned. You cannot install an air-to-air system purely for cooling and still qualify; it has to serve as the primary heating system for the property.
Your property needs a valid Energy Performance Certificate (EPC) that is no more than ten years old. The 2026 rules relaxed an earlier requirement that had barred properties with outstanding loft or cavity wall insulation recommendations, so that particular barrier has been lowered. It is still worth checking your EPC before you apply, as any other outstanding recommendations could still affect the process.
New builds and social housing are not eligible under the scheme. If your property has already received government funding for a heat pump or similar low-carbon system, you cannot apply again for the same property.
The Boiler Upgrade Scheme is installer-led, which in plain terms means your installer handles the paperwork, not you.
You do not fill out a government form or deal with Ofgem directly. Instead, you choose an MCS-certified installer (MCS stands for the Microgeneration Certification Scheme, which is the nationally recognised standard for this type of work), and they apply for the grant voucher on your behalf. Once the scheme opens and your application is approved, the £2,500 will be taken straight off your installation invoice rather than paid to you separately.
The installer must be MCS-certified for the grant to go through at all, so this is one of the first things to check when you’re getting quotes.
This is an important detail that some sources gloss over.
The government announced the air-to-air expansion in November 2025, but the Department for Energy Security and Net Zero has confirmed that the official rollout for air-to-air heat pump funding is scheduled for 2027. The £7,500 grant for full air-to-water heat pumps is available now, but the £2,500 air-to-air grant is still in the pipeline.
That said, this gives homeowners in Coventry and Warwickshire a useful window to get their property ready. If your EPC needs updating or your loft insulation is lacking, sorting that now means your application will go through without delays once the funding opens.
Getting a quote and choosing your installer in advance also puts you in a strong position: scheme funding operates on a first-come, first-served basis, and demand tends to spike when new categories open.
If your home has central heating with radiators and you want to replace your gas boiler with a full low-carbon heating system, the air-to-water air source heat pump is the more relevant option for you. This type of heat pump takes heat from outdoor air and distributes it through your existing radiator system and hot water cylinder, replacing your boiler entirely.
Ground source heat pumps, which extract heat from the ground rather than the air and tend to suit larger rural properties with more outdoor space, also qualify for £7,500. Biomass boilers qualify for £5,000, though only in rural properties that are not connected to the gas grid.
UK summers are getting warmer. In the West Midlands, the past few years have seen enough hot spells to make air conditioning genuinely useful rather than just a nice-to-have.
An air-to-air heat pump addresses both ends of the year: it keeps rooms comfortable through July and August, then does the heating through winter without burning gas. For flats, modern open-plan homes, or properties without central heating, it is one of the most practical options on the market right now.
Running costs depend on your energy use and home setup, but because heat pumps move heat rather than generate it, they typically deliver more energy output per unit of electricity than a direct electric heater would.
Combined with a lower installation cost than an air-to-water system, the air-to-air route is particularly attractive for smaller properties.
At Nu Age Heating and Interiors, we install and service air conditioning systems across Coventry, Leamington Spa, Rugby, Warwick, Solihull, and the surrounding areas.
If you want to understand whether an air-to-air heat pump suits your property, or whether a full air source heat pump and the £7,500 grant is the better fit, our team can walk you through it honestly. No pressure, just a clear picture of your options.
Get in touch today for a free quote or call us on 024 7695 0000.