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UK Offers £2,500 Grants for Air-to-Air Heat Pumps and Heat Batteries

Officials say the change lowers entry costs for flats and small houses.

Overview

  • The expanded Boiler Upgrade Scheme now covers air-to-air units that provide heating in winter and cooling in summer, with grants available to all households.
  • Heat batteries qualify for a £2,500 discount, providing overnight heat storage for properties that cannot host conventional heat pumps.
  • Officials estimate an air-to-air system for a flat or small home typically costs about £4,500, so the grant covers more than half the upfront price.
  • The existing £7,500 grants for air-source and ground-source heat pumps remain in place, with roughly 100,000 applications recorded and installations rising.
  • Press reports indicate the Chancellor is considering narrowing access to the £7,500 awards in the upcoming Budget, though government sources say no final decision has been made.