The Government has confirmed that it will begin providing grants of £2,500 to support the installation of air-to-air heat pumps (AAHPs) in domestic properties, and the same sum for heat batteries, under the Boiler Upgrade Scheme (BUS)1. The decision comes in the Government's response to Part 1 of its BUS consultation, which was published on 30 April 2025 and closed on 11 June 20251. The response document is dated November 20251.
The response sets out that heat battery grants will begin "once appropriate product, design and installation standards have been implemented, including robust consumer protections"1. Air-to-air heat pump applications are expected to open in 2026, and heat battery applications in 2026/271. The £2,500 AAHP grant compares with £7,500 for a hydronic (air-to-water) heat pump1. Nesta notes the AAHP grants "were only announced in November 2025, three years after the A2W scheme launched"2.
The Government also confirmed it will amend eligibility criteria to allow more heat pump installations alongside other electric heating appliances, including hot water heat pumps, exhaust air heat pumps, air-to-air heat pumps, heat batteries and electric heaters1. A hydronic heat pump configured in this way will receive the same grant level as a standalone installation, and must still be capable of meeting the property's full space heat demand1. Fossil fuel hybrid heat pumps remain excluded, and a biomass boiler cannot be installed alongside a BUS-funded heat pump1.
On third-party ownership, the Government said it will "undertake further work on third-party ownership of BUS-funded heating systems to resolve complex interactions with the current regulatory landscape before determining eligibility for the scheme"1. It will also relax the requirement to provide a valid Energy Performance Certificate from 2026/27 onwards, though valid EPCs will still be required at the point of application where they already exist1. A requirement for installers to deduct the grant amount from upfront installation costs will be introduced in the BUS regulations1.
"We will begin to provide grants of £2,500 to support the installation of air-to-air heat pumps (AAHPs) in domestic properties."
The consultation received 357 responses in total, including 68 from installers, 32 from manufacturers, 17 from trade associations, 21 from non-governmental organisations, 83 from private individuals and 136 from other respondents1. On the proposal to allow heat pumps in combination with other electric heating appliances, 218 of 248 respondents selected "Yes"1.
| Technology | Grant | Expected application opening |
|---|---|---|
| Air-to-air heat pump | £2,500 | 2026 |
| Heat battery | £2,500 | 2026/27 |
| Hydronic heat pump | £7,500 | Open |
Why it matters for households
The BUS has delivered over £466 million in grants supporting approximately 67,000 heat pump installations since launching in 2022, and the Government confirmed at the Spending Review that the scheme will continue to 2029/30 with rising budgets each year1. For households without a wet central heating system, or in flats and smaller properties where an air-to-water heat pump would not suit, the AAHP grant opens a route to grant-funded low carbon heating that did not previously exist1. Air-to-air systems warm the air inside a building rather than heating water in radiators, and can also be configured for cooling3. They do not usually provide hot water for taps and showers, so households keeping a boiler for hot water would continue to burn fossil fuels for that purpose; Nesta notes hot water typically accounts for 20% to 25% of a home's annual gas usage4.
The Energy Saving Trust gives typical air-to-air costs of about £1,900 to heat a single room and around £3,700 for a three-bedroom semi-detached house3. Nesta estimates a split system feeding multiple rooms at £1,500 to £2,700 per room, or £6,000 to £10,800 for a three-bedroom house with an open plan living area2. On running costs, Nesta says air-to-air costs are likely to be lower than an oil boiler and similar to a gas boiler or an air-to-water heat pump on a standard electricity tariff, and could be cheaper than a gas boiler on a special heat pump tariff2. The Energy Saving Trust states there is currently not much data on how air-to-air systems perform in the UK, so it is difficult to know how much money a household would save3.
What happens next
The Government intends to introduce the changes during the current financial year, 2025/26, subject to the will of Parliament, and notes that the timeline for specific changes may vary with legislative amendments and operational complexity1. It expects to assess the Microgeneration Certification Scheme Customer Commitment as a consumer code in early 2026, subject to the status of reform implementation1. The relaxation of the EPC requirement is intended from 2026/27 onwards1. Further details about scheme budgets will be provided in due course1. As of May 2026, no air-to-air heat pump installations had been carried out through the BUS scheme5.
Sources5 cited
- Part 1: Amendments to the Boiler Upgrade Scheme - government response, assets.publishing.service.gov.uk
- Why a heatwave is a good time to think about… home heating | Nesta, nesta.org.uk
- Air-to-air heat pumps - Energy Saving Trust, energysavingtrust.org.uk
- Air-to-air heat pumps: a low-carbon solution for UK homes | Nesta, nesta.org.uk
- Heatwaves, Air Con... And Other Things?, thebesa.com