The Department for Energy Security and Net Zero has expanded the Boiler Upgrade Scheme to cover air-to-air heat pumps and heat batteries, the Electrical Contractors' Association reported on 28 November 20251. Households in England and Wales can claim £2,500 off the cost of installing an air-to-air heat pump and £2,500 off the price of heat batteries1. Carrier Solutions UK dated the announcement 25 November 20252.
The ECA described the change as the first time air-conditioning units have been eligible for government funding, and said the grants form part of the government's £13.2 billion Warm Homes Plan1. Nesta, the research foundation, reported that homeowners in England and Wales replacing their boiler with an air-to-air heat pump system will soon be eligible for a grant of up to £2,500, and that eligibility generally includes households replacing fossil fuel heating systems, subject to property and installer criteria3.
"The Department for Energy Security and Net Zero has announced a significant expansion of the Boiler Upgrade Scheme, which will now cover air-to-air heat pumps and heat batteries."
Air-to-air heat pumps transfer heat from outside air and distribute it as warm or cool air through indoor units, and most models do not usually provide hot water, so a separate system is needed3. Nesta said air-to-air systems are not yet widely used in British homes, and that many homeowners installing them currently keep their boiler for hot water, leaving roughly a quarter of their heat demand still burning fossil fuels3. Nesta put the typical cost of an air-to-air heat pump at between £1,500 and £4,000 per unit3.
On certification, Nesta said air-to-air heat pump systems are not currently installed under the Microgeneration Certification Scheme, but that installations eligible for the grant through the Boiler Upgrade Scheme will likely require MCS certification, which can increase financial and administrative costs for installers3. Carrier Solutions UK, which distributes the Toshiba air-conditioning range, said it is preparing for expected changes to product listing requirements and certification, including the move toward MCS as the single route for clean-heat schemes2.
| Item | Grant | Availability |
|---|---|---|
| Air-to-air heat pump | £2,500 | England and Wales1 |
| Heat battery | £2,500 | England and Wales1 |
The sources differ on timing. The ECA reported the expansion as announced1, while Nesta, writing on 2 December 2025, said homeowners "will soon be eligible"3. Carrier Solutions UK dated the announcement 25 November 20252. The government's own announcement page is not among the sources, so the scheme's start date and the full eligibility rules have not been reported here.
Why it matters for households
The Boiler Upgrade Scheme has until now supported air-to-water heat pumps and biomass boilers, so a grant for air-to-air units widens the range of homes that can draw on public money for a low-carbon heating system. For a flat or a smaller property where an air-to-water system is difficult to fit, an air-to-air unit offers a route to electric heating without a full wet-system retrofit, and it can cool as well as heat3. The heat battery grant addresses the main gap in an air-to-air installation, since these systems generally do not produce hot water on their own3. A household that pairs the two can move more of its heating and hot water off gas, which is the practical meaning of energy independence at home: less exposure to a single fuel and its price. The grant reduces upfront cost, not running cost, and the sources give no figures on bills after installation.
What happens next
The government will launch a consultation to explore alternative clean heating solutions for some homes, which the ECA said may include infrared heating, solid biomass boilers using agricultural waste and renewable liquid fuels1. Nesta noted that only detached homes can have two outdoor units under permitted development in England, with all other property types requiring planning permission for additional units, and that leaseholders in flats will usually require freeholder consent to install an air-to-air heat pump3.