Boiler Upgrade Scheme extended

The Boiler Upgrade Scheme has been extended to include air heat pumps and heat batteries.

The Scheme currently offers grants of £7,500 off the cost of installing an air source or ground source heat pump. The scheme has now been expanded to offer a £2,500 discount off the cost of installing an air-to-air heat pump, which can provide heat in winter and keep you cool in summer.

This is the first time air-conditioning units have been eligible for government funding.

2026 was a record year for heat pumps, with September the best month for applications of record.

The grants are part of the Warm Homes Plan and are available to all households.

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."

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."