The government has confirmed that the Boiler Upgrade Scheme will expand to include air-to-air heat pumps, a technology which provides heat in winter and cooling in summer.
BUS 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 operate as both heating and cooling systems.
It’s the first time air-conditioning-style units have been eligible for government support. Ministers say it will help households stay comfortable during hotter summers while cutting reliance on fossil fuels.
The announcement comes as 2025 shapes up to be a record year for heat pump demand, with September seeing the highest monthly applications since the scheme began.
The grants are open to all households and link into the government’s £13.2bn Warm Homes Plan, aimed at bringing down bills for around five million families. Installing an air-to-air heat pump in a flat or small home typically costs about £4,500, meaning most of the upfront cost could now be covered.
Support is also being extended to heat batteries, which will also qualify for £2,500 off. These units store heat using electricity and release it later, helping households manage energy use across the day.
Alongside the funding changes, the government has launched a consultation on other clean heating options such as thermal storage, infrared panels, renewable liquid fuels and solid biomass boilers made from agricultural waste.
Officials say the expanded scheme is designed to give households more choice as the UK transitions to low carbon heating.
