Boiler Upgrade Scheme has been expanded to include air-to-air heat pumps and heat batteries giving families more choice in how they upgrade their home.
- Government expands successful heat pump scheme to technology that keeps homes warm in winter and cool in summer
- Heat batteries also included in expansion of Boiler Upgrade Scheme giving consumers more choice when upgrading their home
- September a record month for applications as British public show clear demand for clean heating
More people will get money off technology that keeps their homes warm in winter and cool in summer, thanks to the expansion of the successful Boiler Upgrade Scheme.
This currently offers grants of £7,500 off the cost of installing an air source or ground source heat pump, which can keep homes warm during the winter.
Now the scheme has been expanded to offer a £2,500 discount off the cost of installing an air-to-air heat pump, which can offer the best of both worlds, providing heat in winter and keeping you cool in summer.
This is the first time air-conditioning units have been eligible for government funding, meaning residents will benefit from cool homes during a long, hot summer, without burning harmful fossil fuels.
This comes as 2025 is a record-breaking year for heat pumps, with September being the best month for applications on record, as the British public show unprecedented demand for clean heating.
The grants are available to all households, and form part of the government's £13.2 billion Warm Homes Plan, which will bring down bills for 5 million families.
The typical cost of installing an air-to-air heat pump in a flat or small house is around £4,500, meaning the grant can cover most of the upfront cost.
To increase choice even further, households will also be able to claim £2,500 off the price of heat batteries, which can store heat overnight for use during the day.
This is alongside a consultation on the role alternative heating systems, such as storage heaters, infrared panels or renewable liquid fuels, can play so that every household has a low-carbon option that is right for them.
Minister for Energy Consumers Martin McCluskey said:
Air-to-air heat pumps offer the best of both worlds - keeping you warm in winter while cooling you down when summer comes along.
With heat pumps more popular than ever, we want to make sure as many people as possible can benefit, especially those in flats or small homes without central heating, so they have greater choice when upgrading their property.
We are also offering discounts for heat batteries and consulting on the role innovative, clean heating solutions can play, including thermal storage, infrared panels and renewable fuels.
Air-to-air heat pumps work like an air conditioning unit, but can provide both hot and cold air, while heat batteries use electricity to store heat, which can be released when needed to supply heating, and in some cases hot water.
Government is also launching a consultation to explore alternative clean heating solutions that may play a role in some homes, such as infrared heating, solid biomass boilers using agricultural waste, and renewable liquid fuels, and to explore the role of innovative, clean heating technologies in homes.
Andrew Sissons, Deputy Director of Nesta's sustainable future mission said:
Air to air heat pumps are an efficient option for many homes. As we're faced with a warming climate, it's important that people have the financial support to both heat and cool their homes sustainably. The expansion of the BUS grant will help many households go green while staying comfortable all year.
Charlotte Lee, Chief Executive of the Heat Pump Association said:
The Heat Pump Association welcomes today's announcement to expand the Boiler Upgrade Scheme to include air-to-air heat pumps and heat batteries. Since its launch, the BUS has played a vital role in accelerating the transition to low-carbon heating, giving thousands of households access to clean, efficient technologies and helping to build the UK supply chain.
Broadening the range of supported technologies is an important step in offering consumers more choice. To maintain this success, an ambitious budget allocation under the Warm Homes Plan will be key to ensuring that the scheme continues to deliver for households and industry, supporting jobs and long-term investment.
Aadil Qureshi, co-founder and CEO of Heat Geek said:
The transition to modern technology to power our homes is a critical mission; to unlock cheaper bills, warmer homes and greater comfort for households across the country. Being empowered with the full spectrum of technologies to build solutions for customers will enable the industry to deliver on these outcomes for every household, irrespective of their current setup and adapting to their individual needs.
Abigail Ward, Policy Manager at Energy Saving Trust said:
We welcome today's announcement that the Boiler Upgrade Scheme will be expanded to include air-to-air heat pumps and heat batteries. This will make the upfront cost of low carbon technologies affordable to more households, who will be able to benefit from technologies that make their homes more comfortable all year round.
Accelerating the roll out of low carbon heating is key to cutting carbon emissions and reducing our reliance on volatile fossil fuels, one of the root causes of high energy bills.
Notes
Consultation on alternative low-carbon heating solutions is available here: Exploring the role of alternative clean heating solutions.
To ensure quality assurance and consumer protections, we will begin to provide grants to support heat batteries once appropriate product, design and installation standards have come into force.
To make heat pumps available to even more households, government previously consulted on different purchase options, including the possibility of leasing a heat pump with no upfront cost, but with low, monthly payments instead.
Following significant feedback to the consultation, government will continue to explore the feasibility of introducing such schemes, with further announcements to be made in due course.
