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he introduction of the Future Homes Standard means that heat pumps will be the de facto heating technology for new homes going


forwards. However, for homeowners with an existing gas boiler, there are currently a few factors that may make the switch to a heat pump more attractive.


Bigger Boiler Upgrade Scheme budgets


The Government has increased the budget for the Boiler Upgrade Scheme (BUS), which provides grants for the installation of heat pumps in England and Wales, every year since it was introduced in 2022. It has gone from £50 million in the first year to £295 million for the 2025/26 financial year. For the current 2026/27 year the budget has been increased significantly to £400 million . Alongside this, the Scottish Government is still offering its Home Energy Scotland Grant and Loan, which provides up to £15,000 per home for a heat pump installation, made up of a £7,500 grant and up to £7,500 as an interest-free loan. All this means that there is more funding available so more homes can benefit from the reduced capital cost. The Government has also confirmed that the BUS


programme will continue to at least 2030, giving installers assurance of long-term support for heat pumps. That long-term certainty makes it easier for installers to invest in the training and industry- recognised credentials needed to grow their heat pump business. Daikin’s UK training academies support installers through this progression, including the City & Guilds Assured Daikin Altherma Heat Pump Technician credential and route into the Sustainable Home Network.


Air-to-air heat pumps now BUS eligible


Since April this year, the Boiler Upgrade Scheme has been expanded to include £2,500 for air-to-air heat pumps. The lower grant level compared to the £7,500 for air to water systems reflects the typically lower installation costs of an air-to-air system. Opening the scheme to this type of heat pump is an important step to enable more homes to make the switch. Air-to-air systems are ideal for smaller properties or those that do not have an existing wet heating system. Additionally, one of the factors that makes this type of system particularly attractive to homeowners is that air-to-air systems can provide effective cooling in the summer as well as heating


RENEWABLES


The time for heat pumps is right now


Here, Hamid Salimi, residential product manager at Daikin, provides an update on recent changes and developments that mean heat pumps are now an even more viable and important technology for residential heating


during colder times of the year. With average summer temperatures in the UK steadily rising as a result of climate change, this makes the investment especially effective. Daikin’s residential range covers both grant tiers, with Daikin Altherma air-to- water heat pumps for whole-home heating and hot water, and the Daikin multi-split air-to-air range, where one outdoor unit can serve up to five indoor units for heating and cooling.


Boosted funding for rural properties


In an effort to decarbonise rural homes, the Government has implemented a temporary increase in the BUS grant level for properties that are off the gas grid. From 21 July 2026 until 31 March 2027, eligible off-gas grid homes replacing fossil fuel or non-heat-pump electric heating, can access an uplifted £9,000 grant towards an air-to-water or ground source heat pump. This is similar to the rural uplift offered to remote and island properties under the Home Energy Scotland Grant and Loan.


Solar energy


The number of homes choosing to install solar PV panels has increased and remained high over recent years, driven by the high costs of energy. According to MCS data, in May 2021, just 5,046 solar PV panel installations were completed. In May 2026 it reached 24,926, its highest level since December


2015 when the Feed-in Tariff was reduced. In total over two million solar PV installations have been completed since 2009. This expansion in the use of solar panels on domestic properties presents a potential opportunity for heat pumps. For homes with solar panels, the renewable energy generated can be used to power the heat pump, reducing overall energy costs. This is especially true where the solar system includes a battery so the generated energy can be used during the night. For air-to-air systems, solar is a particular advantage as the need for cooling generally coincides with the times of the year when solar generation is at its highest. As a result, homeowners can achieve low-cost and low- carbon cooling. Heat pumps are undoubtedly the most effective


low carbon heating technology, but the potential cost is a reason many have not made the switch. With expansions in BUS eligibility and funding, heat pumps are a more viable option for more homeowners than ever before.


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