Britain’s Boiler Upgrade Scheme will now covers air-conditioning technology for the first time, offering households financial support for systems that provide both winter warmth and summer cooling without relying on fossil fuels.
New grant options
The Department for Energy Security and Net Zero has broadened its heating subsidy programme to include air-to-air heat pumps and thermal storage batteries, giving homeowners greater flexibility when modernising their properties.
The existing scheme provides £7,500 toward installing traditional air source or ground source heat pumps designed primarily for heating. The expansion introduces a £2,500 discount on air-to-air systems that deliver both heating and cooling—ideal for properties that experience temperature extremes throughout the year.
This marks the first government funding available for air-conditioning equipment, enabling residents to maintain comfortable indoor temperatures during extended hot periods using clean energy rather than harmful fossil fuels.
Additionally, households can now claim £2,500 toward heat batteries—devices that store thermal energy overnight for daytime use, offering another layer of climate control capability.
Surging demand
The timing reflects the growing interest in clean heating technology. September 2024 recorded the highest number of application since the programme’s launch, with 2025 projected to break further records for heat pump installations.
The grants form part of the government’s £13.2 billion Warm Homes Plan that targets bill reductions for five million households. All households qualify for the subsidies, making low-carbon heating accessible across income levels.
For typical flat or small house installations, air-to-air heat pumps cost approximately £4,500, meaning the grant covers more than half the expense—representing substantial financial assistance for many families.
Technology explained
Air-to-air heat pumps function similarly to conventional air-conditioning units but operate bidirectionally, providing hot or cold air depending on seasonal needs. Heat batteries utilise electricity to store thermal energy, releasing it when required to supply heating and sometimes hot water.
These technologies offer particular advantages for apartments and compact homes that lack central heating systems, expanding upgrade options beyond traditional radiator-based solutions.
Alternative heating consultation
Alongside the scheme’s expansion, the government is consulting on additional low-carbon heating methods including storage heaters, infrared panels, solid biomass boilers using agricultural waste, and renewable liquid fuels. This consultation aims to ensure that every household has access to clean heating options suitable for their specific circumstances.
The Energy Consumers Minister,Martin McCluskey, emphasised the government’s commitment to accessible, affordable heating across all properties, and said that the expanded scheme would positively impact lives nationwide.
Industry response
Sector leaders welcomed the announcement enthusiastically. Andrew Sissons from innovation charity Nesta highlighted that, as climate warming accelerates, financial support for sustainable heating and cooling becomes increasingly important for year-round comfort.
The Heat Pump Association praised the expansion as vital for offering consumers broader choice. They stressed that an ambitious budget allocation under the Warm Homes Plan remains crucial for continued success, supporting employment and long-term investment across the supply chain.
Heat Geek described the technology transition as mission-critical for unlocking cheaper bills, warmer homes, and enhanced comfort, saying that empowering the industry with comprehensive technology options enables customised solutions regardless of existing heating infrastructure.
The Energy Saving Trust noted that the expansion of the scheme makes the upfront costs of low-carbon technology more manageable for additional households, enabling comfortable homes throughout changing seasons while accelerating the shift away from volatile fossil fuels that drive high energy expenses.
Implementation details
Heat battery grants will begin once the appropriate product, design, and installation standards can be achieved, to ensure quality assurance and consumer protection.
The government previously consulted on alternative purchase mechanisms including lease arrangements requiring no upfront payment but featuring modest monthly instalments instead. Following substantial consultation feedback, the feasibility of such schemes will continue to be explored, with further announcements expected in due course.
The government says its approach demonstrates a commitment to making clean heating technology financially accessible while maintaining high standards and consumer safeguards throughout the transition to low-carbon home climate control.