16 June 2025
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Mark Krull, Director of LCL Awards and Logic4training, explores what forward-thinking heat pump installers should look out for if proposed plans to expand the Boiler Upgrade Scheme (BUS) come into effect.
If proposed plans to expand the Boiler Upgrade Scheme (BUS) come into effect, it will open-up the heat pump market to a whole new customer base, with previously overlooked technologies such as air-to-air heat pumps and heat batteries meeting the needs of more properties and new finance models improving access to the scheme.
A surge in demand - the data speaks for itself
The demand for heat pumps is growing. March 2025 saw the best month on record for the Boiler Upgrade Scheme (BUS) with 4,028 applications - an 88% increase on the same period last year. The scheme offers up to £7,500 toward heat pump installations, and proposed amendments could extend support to air-to-air (A2A) systems and heat batteries. This data underscores a robust and accelerating market for low-carbon heating solutions, presenting a sustained opportunity for well-prepared businesses in the building services engineering sector.
Following our neighbours’ low-carbon footsteps
Under the proposed expansion, A2A heat pumps and heat batteries will be eligible for subsidy for the first time, providing more choice and therefore opening up the BUS to properties unsuited to ASHPs and GSHPs. In much of mainland Europe, A2A heat pumps are ubiquitous in homes. These reversible air-conditioning systems provide heating (and cooling) but not hot water. They offer lower upfront costs and simpler installation - no groundworks, minimal pipework, and no hot water cylinder - making them ideal for flats, lofts, or supplementary heating. A2A systems suit homes with modest heating needs, especially when combined with solar thermal or heat batteries for hot water, due to their compact size and efficiency in small spaces.
Heat batteries: Storing warmth for later use
Heat batteries store off-peak electricity as heat in insulated units and release it on demand. These can be installed alongside heat pumps or as part of bundled solutions, helping households manage peak tariffs. They integrate well with solar or wind systems, offering a smart alternative to traditional hot water systems. Installer advice is crucial to choose the right setup based on budget, efficiency, and compatibility.
No upfront cost, more uptake
Even with the BUS grant, upfront costs remain a barrier. New finance models - such as hire purchase, leasing, and on-bill repayments - can eliminate this, with customers paying in installments, often offset by energy savings. There are several options being considered to help spread the cost of heat pump installation, including:
- Hire purchase: Households have the option to pay for a heat pump in instalments, meaning they own the equipment at the end of their contract
- Hire purchase plus: Households combine paying for a heat pump in installments alongside a separate contract for an energy tariff, simplifying costs into a single monthly payment.
- Leasing: The option to lease a heat pump for an agreed term. At the end of the contract, households would either renew the agreement to continue the lease or replace the heat pump.
These ‘pay-as-you-save’ models could transform heat pump sales. Installers should learn to price with financing in mind, explain terms clearly, and work effectively with BUS-approved finance partners, ensuring they remain competitive in a changing market.
Emerging demographics
While early adopters have been predominantly owner-occupiers in detached or semi-detached houses, new customers cohorts are emerging:
- Private landlords: Changes to Minimum Energy Efficiency Standards (MEES) regulations compel buy-to-let landlords to achieve higher EPC ratings. A2A or heat-battery retrofits in flats and multioccupancy buildings could offer cost effective compliance routes.
- Social and affordable housing providers: Bulk procurement strategies and decarbonisation targets drive demand for large-scale retrofit programmes, creating opportunities for installers who can deploy teams at scale and integrate multiple technologies.
- First-time buyers and young professionals: Typically, with limited equity, these customers could benefit from low-entry finance models and smaller-scale air-to-air solutions.
The “Clean Power Army”
In response to emerging demographics and increasing demand for upgrades to cleaner, homegrown energy, the UK government is boosting funding to bolster the ‘Clean Power Army’ by training up to 18,000 skilled workers to retrofit homes, install heat pumps, fit insulation, solar panels and work on heat networks through the extension of the Heat Training Grant and launch of the Warm Home Skills Programme. These schemes contribute to the Government’s ambition to create a ‘homegrown’ heat pump industry. It has also invested £4.6 million in heat pump compressor manufacturers, Copeland, based in Northern Ireland, supporting local jobs and economic growth as part of the Plan for Change.
Preparing your business: training & upskilling
Clearly, a significant investment in the UK trades workforce is underway. To capitalise on the BUS expansion and other Government funded initiatives, installers will do well to adopt a multi-faceted approach to developing their knowledge and skills. Now is a good time to consider training, but “training” can cover a wide spectrum:
- Formal qualifications: Core qualifications such as the Level 3 Diploma in Heat Pump Systems Installation and retrofit insulation certificates - form the foundation of compliant, future-ready work in the low-carbon sector. Some of these courses are eligible for government funding and essential for installers looking to operate confidently in the heat pump and wider retrofit space.
- Manufacturer training: Product-specific training from manufacturers is key to keeping pace with technology. Many Original Equipment Manufacturers (OEM) offer blended courses combining e-learning and hands-on sessions, often focused on emerging solutions like airto-air heat pumps and heat batteries. Engaging with manufacturers builds versatility and technical confidence.
- Ongoing learning & industry engagement: Continued professional development doesn’t always mean formal qualifications. Free resources such as webinars, podcasts, and of course, trade magazines offer practical insights into the evolving sector.
- Attending events like InstallerSHOW and RenewableUK’s conference allows professionals to network, explore new technologies and engage with the wider low-carbon community. Meanwhile, social media platforms like LinkedIn and trade forums enable real-time knowledge sharing and help build professional visibility.
Prepare for a dynamic market
The proposed BUS expansion heralds a transformative phase for the UK’s heat-pump market. The inclusion of A2A systems and heat batteries, coupled with flexible finance models, will increase demand across previously inaccessible demographics and property types. However, realising these opportunities will require installers to keep their knowledge and skills up to date in order to join the front line of workers in these emerging sectors. Professionals wanting to be part of the low-carbon workforce should consider conducting a skills audit, engaging with manufacturer partners and reviewing the qualifications needed to take advantage of emerging markets. By doing so, you will not only secure growth for your business but also contribute meaningfully to the UK’s net-zero ambitions.
Info
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