From 18 November, homeowners can claim up to £2,500 off the cost of installing an air-to-air heat pump, technology that could deliver both heating and cooling via a reversible cycle. With typical install costs around £4,500 for flats and small homes, the grant could cover more than half the upfront cost.

The BUS continues to offer £7,500 grants for air source and ground source heat pumps. The new support for air-to-air systems is designed to help properties without central heating access year-round comfort, particularly during increasingly hot UK summers.

The expansion forms part of the government’s £13.2 billion Warm Homes Plan, which aims to reduce bills for five million families. September 2025 saw record BUS applications, reflecting growing public demand for clean heating solutions.

Charlotte Lee, CEO of the Heat Pump Association, welcomed the move: “Broadening the range of supported technologies is an important step in offering consumers more choice.”

Iain Bevan, Daikin’s Residential New Business Director, commented: “The inclusion of air-to-air heat pumps in the Boiler Upgrade Scheme is great news for the industry and householders.  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.”

Air-to-air heat pumps offer a familiar install profile for AC engineers, with added relevance in retrofit scenarios. The inclusion of heat batteries may also prompt integration opportunities with hybrid systems and off-peak tariff strategies.

The BUS expansion is expected to drive demand for skilled installers familiar with both heating and cooling technologies and support diversification across the HVAC sector.