Air-to-air heat pumps are now eligible for government grants, according to a Nesta report published on 21 January 20251. The statement appears in a data-driven FAQ on heat pumps written by Aidan Kelly, a junior data scientist, and Sofia Pinto, a data scientist, at the research and innovation foundation1.
Air-to-air heat pumps, often called air conditioners, extract heat from the air in one location and move it to another, and many systems are reversible, so they can collect energy from outside air in winter and move it indoors1. Nesta gives typical installation costs ranging from £2,400 in a one bedroom flat to £8,800 in a four bedroom house, and states that these costs are heavily dependent on the number of rooms that need to be heated, because costs are based on the number of heat pump units installed1. A four bedroom semi detached house may require five indoor air-to-air units, the report says1.
"Air-to-air heat pumps are now eligible for government grants"
The report notes that most air-to-air heat pumps do not currently offer hot water heating, though newer models coming onto the market do1. It also cites a survey of heat pump owners in which 73% reported being as satisfied or more satisfied with their heat pump compared to their previous heating system1. Nesta states that the UK government is considering plans to phase out new gas boilers by 20351.
The report does not set out the grant amount, the scheme name, the eligibility conditions or the date from which applications can be made for air-to-air units. Those details have not been reported in the material available1. The grant link Nesta cites points to a government news page on discounts for families to keep warm in winter and cool in summer1.
| Property type | Typical installation cost |
|---|---|
| One bedroom flat | £2,400 |
| Four bedroom house | £8,800 |
Why it matters for households
Air-to-air systems heat rooms directly rather than a wet central heating circuit, so a home's heat is delivered by indoor units rather than radiators or underfloor heating. That shapes what a household gets for its money: the cost scales with the number of rooms served, and a larger house needs more indoor units1. Because most of these systems do not currently provide hot water, a home that installs one may still need another appliance or system for hot water, unless it chooses one of the newer models that do1.
For energy independence, the significance is that a household can run space heating and cooling from electricity rather than from gas, oil, LPG or direct electric heating. Nesta states that switching from oil, LPG or direct electric heating to a heat pump can lower a home's energy use and heating bills, while switching from a gas boiler may keep bills similar under standard tariffs1. It adds that time of use electricity tariffs, which charge different prices depending on the time of day, can make heat pumps cheaper to run, and that increases in renewable energy capacity are likely to reduce running costs over time1. Grant eligibility changes the upfront arithmetic for air-to-air units, which the report previously described as not qualifying for the government grant1.
What happens next
The report gives no application dates, no deadline and no confirmation of when grant funding for air-to-air heat pumps opens. Households seeking the current position on eligibility and how to apply would need the government announcement itself, which has not been reported here1.