The Boiler Upgrade Scheme (BUS) is being expanded to include air-to-air heat pumps and heat batteries for the first time, the government has announced.
The Scheme currently offers grants of £7,500 off the cost of installing an air- or ground-source heat pump. Now, the scheme will offer a £2,500 discount off the cost of installing an air-to-air heat pump, which can help keep homeowners and tenants warm in winter and cool in summer. This is the first time that air-conditioning units have been eligible for government funding.
The grants are available to all households as part of the government’s £13.2 billion Warm Homes Plan, which the government said will bring down bills for 5 million families.
According to the government, the typical cost of installing an air-to-air heat pump in a flat or small house is around £4,500. There is also a consultation on the role that alternative heating systems, such as storage heaters, infrared panels and renewable liquid fuels, could play in introducing low-carbon options to UK homes.
Minister for Energy Consumers, Martin McCluskey, said: “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.”
Charlotte Lee, Chief Executive of the Heat Pump Association, added: “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.”
The announcement comes as September 2025 was the best month on record for BUS applications.