Homeowners can now claim £2,500 towards the cost of installing air-to-air heat pumps – systems that cool in summer and heat in winter – under changes to the government’s Boiler Upgrade Scheme.
The expansion, announced this week, brings air-conditioning-style units into a scheme previously limited to traditional air- and ground-source heat pumps.
Heat batteries are also being added, widening the range of technologies eligible for financial support.
What’s changing in the Boiler Upgrade Scheme?
The updated Boiler Upgrade Scheme gives households the option to install air-to-air heat pumps, which work similarly to air-conditioning units but can run in reverse to provide heating.
These systems do not heat water and instead distribute warm or cool air through blowers, making them suitable for smaller homes, flats and properties without wet radiator systems, which means they can be a practical option where full central-heating retrofits are difficult.
Alongside this, heat batteries, which store electricity as heat for use later in the day, become eligible for the same £2,500 discount. These additions sit alongside existing grants of up to £7,500 for air-source and ground-source heat pumps. The government says the changes aim to give homeowners more choice in how they switch to low-carbon heating.
Energy Consumers Minister 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,” adding that the expansion is intended to “make sure as many people as possible can benefit, especially those in flats or small homes without central heating.”
Industry figures welcome the expansion
The Heat Pump Association welcomed the announcement, with its chief executive Charlotte Lee saying the wider eligibility “is an important step in offering consumers more choice,” and that continued funding will be key to supporting “jobs and long-term investment” in the UK supply chain.
Nesta’s deputy director Andrew Sissons described air-to-air systems as “an efficient option for many homes,” arguing that support for cooling as well as heating is increasingly important “as we’re faced with a warming climate.”
Mark Smale, Head of Renewables at Bradfords Building Supplies, said the decision could accelerate practical uptake: “It is great news that the government has decided to expand the Boiler Upgrade Scheme to include air-to-air heat pumps and heat batteries. Air-to-air heat pumps are not only more cost effective for households, they are also highly adaptable and importantly familiar, using the same technology as air conditioning.”
He added that giving homeowners genuine choice “sends a powerful signal which will hopefully drive widespread adoption of low-carbon heating solutions.”
The Apprentice's Dean Franklin, who owns an air conditioning company, also previously called for the inclusion of air-to-air heat pumps in the scheme, stating: “If they’re giving grants for one type of heat pump and heating and cooling system, why not the other?”
Mark Smale is Head of Renewables at Bradfords Building Supplies, where he leads the firm’s work on heat pumps and emerging low-carbon technologies, supporting installers and housebuilders across the region.
Andrew Sissons is Deputy Director of Nesta’s Sustainable Future Mission, leading research and policy work on clean heating, energy efficiency and the transition to net zero homes.
What homeowners should know
Air-to-air systems may appeal to households that want cooling during summer or those who cannot install radiators or underfloor heating.
The Boiler Upgrade Scheme still requires installations to be carried out by MCS-certified installers, and applications continue to be submitted by the installer on the homeowner’s behalf. It also sets out the scheme’s EPC requirements and recent rule changes that removed earlier insulation conditions.
For comparison, air-to-water heat pumps are more difficult to install and more expensive than air-to-air heat pumps, but they do provide hot water and are better suited to larger properties.
The government has also launched a consultation on additional heating options such as infrared panels, renewable liquid fuels and other innovative systems, signalling further possible changes to the landscape of home-energy upgrades.
