The government is looking to expand the Boiler Upgrade Scheme to include air-to-air heat pumps and heat batteries.
Air-to-air heat pumps work by taking heat from outdoors to heat a house in winter, or the opposite during the summer.
Heat batteries meanwhile transform electricity into heat, which is then stored and used when required.
The scheme works by offering homeowners up to £7,500 off the cost of purchasing and installing a home heat pump, and has received over 76,000 applications since launching in May 2022.
Currently only air and ground source heat pumps are eligible as part of the scheme.
Richard Beresford, chief executive of the National Federation of Builders, said: “The NFB has long advocated for such reforms, particularly for air-to-air heat pumps, to ensure we can remain technologically agnostic in our approach to the net zero transition.
“The announced considerations are a significant step towards that goal, and we commend the government for listening to industry recommendations and taking meaningful action to support the net zero transition on existing homes.
“The proposed expansion of the scheme could involve the inclusion of more types of heat pumps, such as air to air heat pumps and electric heating technologies, e.g. heat batteries, which are currently ineligible for grants.
“Additionally, the government will consider new heat pump purchase options for consumers, for example hire purchase and leasing to make low-carbon heating more accessible.”
The government has also set out plans to train up to 18,000 more home retrofitters and install insulation, solar panels and heat networks.
Rico Wojtulewicz, Head of Policy for the NFB, said: “Air to air heat pumps dominate continental installs and so we always thought it strange that the Tory government decided to focus only on air to water systems.
“The new Labour government are seeking to rectify that error of judgement and have also sought views on heat batteries, another solution the NFB spent eighteen months lobbying to be included under the BUS.
“The benefits to existing homes are clear but if the consultation results in air to air and heat batteries being included in the BUS and even Clean Heat Market Mechanism (CHMM), there will be knock on benefit to the new build sector as the solutions they offer, for instance cooling and air quality, might inform out of date Building Regulations, thus ensuring the Future Homes Standard (FHS) is deliverable at scale.
“We must not always frame net zero as a carbon story. Electrification offers more efficiency, cleaner power, healthier homes and stimulates technological innovation, but it is impossible to deliver with one solution. We therefore hope this is the first step of many to have a net zero plan which is practicable and not led by ideologues.”
Russell Smith, managing director and founder of Ecofurb, said: “Giving households more choice over how they upgrade their homes is a step in the right direction – but turning that into widespread action will take more than just financial support.
“For many homeowners, the real barriers are not knowing where to start or getting clear, trusted guidance on what will work for their specific home. Ecofurb’s own research shows that 14% of homeowners are uncertain about where or how to begin making energy efficiency improvements.
“Every home is different. While new technologies like air-to-air heat pumps and heat batteries offer more options for homeowners, especially for those with smaller or more space-constrained homes, people still need tailored advice in order to make confident, informed decisions.
“That’s why better education must sit alongside these incentives. Homeowners need to understand what’s right for their home, not just what’s available.
“We also strongly welcome the investment in training up to 18,000 more retrofit professionals. With 22% of homeowners reporting difficulty in finding skilled professionals to carry out the work, this investment is essential not just for meeting demand, but for building trust in retrofit and ensuring that work is delivered to a high standard by skilled and trusted experts.
“The ambition is there – now we need to back it by giving people the right advice, the right skills, and the right tools to take action.”
