Air-to-air heat pumps and the £2,500 grant

Last checked 30 September 2026. Grant rates and deadlines change — confirm on GOV.UK before acting.

This is an independent guide, not a government service. We are not connected to any government department, council or energy supplier. You never have to pay to apply for any of the schemes on this site.

This is the newest route, and the one that opens the scheme to people it previously excluded: flats, small properties, and homes where replacing radiators and pipework is impractical.

What it actually is

It heats the air directly and blows it into the room, rather than heating water for radiators. If you have seen a wall-mounted air conditioning unit, that is the same technology working in reverse. Most units cool as well as heat.

The trade-off, stated plainly

Cheaper to install, because there is no pipework, no radiators and usually no cylinder.
The grant is £2,500 rather than £7,500, because the installation costs less.
It does not heat your water. You keep an immersion heater or a separate system for that. This is the single biggest thing people are not told.
Heat is delivered room by room, so whole-house heating needs several indoor units.

Who it suits

Flats, park homes, well-insulated small houses, extensions, and properties on electric panel or storage heaters. If you already have a working wet radiator system, the £7,500 route is usually better.