On my end, v1.2.1 switches modes fine – either with numpad + or upgrade planner. Two issues though: no downgrade from 165→100 for the boiler, and no downgrade from 500→350 for the heating tower. Also, switching the tower with num+ can break heat‑pipe connections occasionally; you'll have to rebuild the pipes. No fix found yet, sorry.
Maybe you're using it incorrectly – you don't need to open the building's GUI. Just hover your mouse cursor over the building and press num+ to cycle through the modes :)