💷 Heat Pumps 23 May 2026 · 4 min read

Are There Government Grants for Air Conditioning?

Air conditioning outdoor condenser unit installed by Tempest, Surrey

In short

No, there is no government grant for air conditioning in the UK. The Boiler Upgrade Scheme only funds air-to-water heat pumps, ground-source heat pumps and biomass boilers. Because an air conditioner is an air-to-air heat pump, it is not eligible. You can still fund a system through 0% VAT savings on some work and FCA-regulated finance.

The honest answer: no grant for air conditioning

We will be straight with you, because plenty of websites are not. There is currently no government grant for air conditioning in the UK.

The main scheme people ask about is the Boiler Upgrade Scheme (BUS). It offers grants towards low-carbon heating, but it is limited to three technologies: air-to-water heat pumps, ground-source heat pumps and biomass boilers. Air conditioning is technically an air-to-air heat pump, and air-to-air systems are specifically excluded from the scheme. So if you see a claim that you can get a BUS grant for air conditioning, it is simply wrong, and we would rather you heard that from us than discovered it after signing a contract. You can read how the wider technology compares in our heat pumps guide.

Why air conditioning is excluded

The Boiler Upgrade Scheme is designed to replace fossil-fuel heating systems with units that can heat your water, because that is what swaps directly for a gas or oil boiler feeding radiators and a hot-water cylinder.

An air conditioner heats and cools the air in your rooms. It is genuinely a heat pump, and a very efficient one, but because it does not produce hot water and does not connect to a wet central-heating system, it falls outside the scheme's rules. We explain the difference in full in our air-to-air vs air-to-water comparison. The distinction matters, so it is worth understanding before you budget.

What support does exist

It is not all bad news. A few genuine routes can reduce the cost or make it manageable:

  • VAT: some energy-related work qualifies for reduced or 0% VAT under current rules. Eligibility is specific and changes over time, so we will confirm honestly whether your project qualifies rather than promise a saving we cannot guarantee.
  • Finance: we offer FCA-regulated finance through Phoenix Financial (subject to status), letting you spread the cost over a term that suits you. See our finance options and see our finance options.
  • Efficiency savings: a modern inverter system used for heating can be cheaper to run than older electric heating, so part of the cost is recovered through lower bills. See our running costs page.

The efficiency angle: AC as low-cost heating

Here is the genuinely useful point that the grant question often obscures. Because your air conditioning is a reverse-cycle heat pump, in winter it can deliver around three units of heat for every unit of electricity it uses. That makes it one of the cheaper ways to heat a room directly, often costing in the region of 10 to 30p per hour on an efficient inverter unit.

So while there is no grant cheque, an air conditioner earns its keep year-round: cooling in a Surrey heatwave and providing efficient top-up heating in the colder months. For many of our customers that dual purpose, rather than any subsidy, is what makes the numbers work. Our cost guide sets out the full picture.

A note on what might change

Government schemes do evolve, and there has been discussion about whether air-to-air systems might be supported in future. We deliberately do not build a sales pitch around possible future funding, because we will not ask you to make a decision based on something that does not yet exist.

If the rules ever change, we will update this page and tell you. In the meantime, the honest path is to look at the real cost, the running savings and finance. If you would like a no-pressure assessment, our teams in Guildford, Woking and Farnham are happy to help, and you can see our full Surrey coverage too.

UK low-carbon heating grants and air conditioning eligibility

Scheme / routeWhat it coversAir conditioning eligible?
Boiler Upgrade Scheme (BUS)Air-to-water, ground-source, biomassNo
0% / reduced VATSome energy-related work (conditions apply)Sometimes
FCA-regulated financeSpreading the cost (subject to status)Yes
Running-cost savingsEfficient inverter heating vs older heatersIndirect benefit

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Frequently asked questions

Can I get the Boiler Upgrade Scheme grant for air conditioning?
No. The Boiler Upgrade Scheme only funds air-to-water heat pumps, ground-source heat pumps and biomass boilers. Air conditioning is an air-to-air heat pump and is specifically excluded from the scheme.
Is there any government funding for air conditioning in the UK?
There is no dedicated grant for air conditioning. Some energy work may qualify for reduced VAT, and you can spread the cost with FCA-regulated finance, but no government grant cheque exists for air-to-air systems.
Why does air-to-water get a grant but air conditioning does not?
Air-to-water heat pumps heat your water and central heating, directly replacing a fossil-fuel boiler, which is what the scheme rewards. Air conditioning heats and cools room air and produces no hot water, so it falls outside the rules.
Is air conditioning still worth it without a grant?
Often yes. It is one of the more efficient ways to heat a room directly, typically 10 to 30p per hour, while also providing summer cooling. Many customers find the year-round dual purpose makes the investment worthwhile.
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