The government has significantly expanded its green home grants programme, making it substantially cheaper for households to achieve year-round temperature control while reducing their reliance on expensive gas heating and portable air conditioning units.
What's changed in the Boiler Upgrade Scheme?
Ministers have announced that the Boiler Upgrade Scheme will now cover air-to-air heat pumps for the first time. This technology provides heating during winter months and can function as an air conditioner during summer heatwaves.
Households can now claim a £2,500 grant toward installation costs. With the average system for a flat or small house costing approximately £4,500, the new grant covers more than half of the upfront expense.
This expansion comes alongside the existing grants of £7,500 for air-source and ground-source heat pumps that completely replace traditional boilers.
Focus on smaller properties and additional savings
Officials indicate the new option will particularly benefit residents of smaller homes and flats that often lack central heating systems, where comprehensive retrofitting can be prohibitively expensive or structurally challenging.
The scheme update also introduces £2,500 grants for heat batteries, which store thermal energy generated overnight when electricity tariffs are typically lower. This innovation could help households further reduce energy bills by shifting consumption away from peak pricing periods.
Martin McCluskey, minister for energy consumers, described the technology as offering "the best of both worlds", providing households with year-round comfort and greater choice when upgrading their heating systems.
Broader implications for UK energy strategy
Energy analysts emphasise that the scheme expansion addresses more than just consumer comfort and immediate cost savings. Jess Ralston of the Energy and Climate Intelligence Unit warned that without a substantial shift toward electric heating, the UK risks becoming increasingly dependent on foreign gas as North Sea production continues to decline.
The announcement arrives as heat pump installations reach record levels in the UK, suggesting the technology is approaching mainstream adoption. However, it also comes amid concerns that green subsidies might face reduction in the Chancellor's upcoming Budget.
The government is currently consulting on how additional clean-heating innovations, including thermal storage, infrared panels and renewable fuels, could integrate into the UK's future energy landscape.
For households considering these technologies, installation must be completed by Microgeneration Certification Scheme (MCS) certified installers, who typically manage the grant application process on the customer's behalf. Most grants are installer-led, meaning the discount is applied directly to the upfront cost rather than requiring separate homeowner applications.
Prospective applicants should check their property's Energy Performance Certificate and confirm what type of heating system they're replacing before contacting installers. Systems generally need commissioning within 120 days of the grant application.
