Boiler Upgrade Scheme expanded to include air-to-air heat pumps and heat batteries 

More people will get money off technology that keeps their homes warm in winter and cool in summer, thanks to the expansion of the 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. 

The announcement comes as 2025 marks 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 five 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.

gov.uk