The Boiler Upgrade Scheme (BUS) will be expanded to cover air-to-air heat pumps, with grants of £2,500 available for installations in domestic properties by early 2026, following a Department for Energy Security and Net Zero (DESNZ) consultation held earlier in 20251. MCS, the certification scheme for clean heat measures under the BUS, said it is working with DESNZ to update the relevant standards and tools, including the Heat Pump Product Standard (MCS 007), the Heat Pump System Performance Estimate (MCS 031) and the Heat Pump Design and Installation Standards (MIS 3005-D and MIS 3005-I), to cover air-to-air products and installations1.
Heat batteries, also called thermal energy storage systems, will also attract £2,500 grants once product, design and installation standards are in force, with applications anticipated to open during 2026/271. MCS is planning a pilot for a Thermal Energy Storage Systems Installation Standard and a System Performance Estimate Standard covering heat batteries1. Separately, the government confirmed in January 2026, as part of its Warm Homes Plan, that the BUS will run until 20302. The scheme was previously set to run until March 20283.
Other regulatory changes include a requirement for installers to deduct the BUS grant amount from the upfront cost of a heat pump or biomass boiler installation, and a relaxation of the requirement to provide a valid Energy Performance Certificate from 2026/27 onwards1. DESNZ has said it will assess the effectiveness of the MCS Customer Commitment before approving it for the BUS in early 2026; until then, installers must retain Consumer Code membership1.
"Grants with a value of £2,500 will soon be provided under BUS to support the installation of air-to-air heat pumps (AAHPs) in domestic properties."
Grant levels for existing technologies are reported differently across the sources. MCS gives £2,500 for air-to-air heat pumps and heat batteries1. E.ON Next states that air-to-water and ground source heat pumps attract a one-time £7,500 grant, with a temporary uplift to £9,000 for homes heated by oil or liquefied petroleum gas, expected to be available until March 20273. Heat Geek states the BUS offers £7,500 for eligible air source heat pump installations in England and Wales, rising to £9,000 for homes on oil or LPG4. E.ON Next states the funding is only for replacing existing fossil fuel heating systems, not low carbon heating or systems in new build properties, and that partial systems which do not replace the main fossil fuel heating are not eligible3.
| Measure | Grant reported |
|---|---|
| Air-to-air heat pump | £2,5001 |
| Heat battery (thermal energy storage) | £2,5001 |
| Air-to-water or ground source heat pump | £7,5003 |
| Oil or LPG heated homes (temporary uplift) | £9,0003 |
Why it matters for households
The BUS has until now funded air-to-water and ground source systems, which supply both space heating and hot water through a wet system. Air-to-air units heat and cool individual rooms by blowing warm or cool air, and typically do not heat domestic hot water, so a separate solution such as a heat battery is needed for that3. The lower grant for air-to-air systems reflects the typically lower cost of the hardware compared with a full water-based heat pump system3. For a household weighing up how far to move away from gas, the change widens the range of eligible technologies, but the £2,500 level is lower than the sums available for wet systems, and the grant can be claimed once per property3. E.ON Next states that a system heating and cooling up to three rooms typically costs between £5,000 and £6,500, and that a small air-to-air installation covering up to three rooms could take between one and three days, not including removal of old radiators and pipework3. Heat Geek states that a heat pump produces three to five units of heat for every unit of electricity used, and that most installations sit between £10,000 and £15,0004. Jackery states a heat pump uses roughly 4,000 kWh of electricity each year, costing around £1,108, based on the Ofgem price cap from 1 January to 31 March 20265. Further detail and coming into force dates for the regulatory changes have not been reported1.
What happens next
DESNZ will assess the effectiveness of the MCS Customer Commitment before approving it for the BUS in early 20261. Applications for heat battery installations are anticipated to open during 2026/271. The requirement to provide a valid EPC will be relaxed from 2026/27 onwards1. The temporary £9,000 uplift for oil and LPG heated homes is expected to be available until March 20273. The government has said it will provide further updates on support for low-income households in Spring 20262.
Sources5 cited
- MCS welcomes changes to Boiler Upgrade Scheme - MCS, mcscertified.com
- Warm Homes Plan: key takeaways for the small-scale renewables sector - MCS, mcscertified.com
- BUS Grant For Air-to-Air Heat Pumps | What You Need To Know, eonnext.com
- Heat Pumps Explained | How They Work | Heat Geek | Heat Geek, heatgeek.com
- Are Heat Pumps Worth It? Heat Pump Guide - Jackery UK – Jackery United Kingdom, uk.jackery.com