18 November 2025
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The Boiler Upgrade Scheme now covers air conditioning. Photograph: Shutterstock
The UK Government has expanded the Boiler Upgrade Scheme (BUS) to include air conditioning technology for the first time.
Already offering grants of up to £7,500 off the cost of installing an air source or ground source system, this move means that air-to-air heat pumps (or air conditioning units) now become eligible for funding, as are heat batteries.
The scheme offers a £2,500 discount off the cost of installing an air-to-air heat pump, which can provide both heating and cooling. The grants are available to all households, and form part of the government’s £13.2 billion Warm Homes Plan.
The typical cost of installing an air-to-air heat pump in a flat or small house is said to be around £4,500, meaning the grant can cover most of the upfront cost. Households will also be able to claim £2,500 off the price of heat batteries, which can store heat overnight for use during the day.
Iain Bevan, Daikin’s Residential New Business Director, said: “The inclusion of air-to-air units is a clear recognition of the important role that this technology has in the UK’s decarbonisation journey. Daikin has long championed sustainable heating and cooling solutions, and has lobbied the government to include it in the scheme.''
Russell Dean, Residential Product Group Director at Mitsubishi Electric, said: “The announcement is a welcome signal that the UK is serious about making heat pumps mainstream, and expanding the Boiler Upgrade Scheme to include air-to-air systems is a smart step that will open the door for more households to adopt more environmentally friendly heating and cooling.
"But if we want real momentum, we still have to tackle the UK’s energy pricing. In recent research we found that a third of homeowners would consider moving to a heat pump if running costs are reduced by removing levies from electricity. As long as electricity remains far more expensive than gas, many homeowners will continue to hesitate, no matter how attractive the upfront incentives are.''
Minister for Energy Consumers, Martin McCluskey, said: "Air-to-air heat pumps offer the best of both worlds – keeping you warm in winter while cooling you down when summer comes along. With heat pumps more popular than ever, we want to make sure as many people as possible can benefit, especially those in flats or small homes without central heating, so they have greater choice when upgrading their property.
"We are also offering discounts for heat batteries and consulting on the role innovative, clean heating solutions can play, including thermal storage, infrared panels and renewable fuels.''
The Government is also launching a consultation to explore alternative clean heating solutions that may play a role in some homes, such as infrared heating, solid biomass boilers using agricultural waste, and renewable liquid fuels, and to explore the role of innovative, clean heating technologies in homes.
