It will also create 18,000 training opportunities for skilled workers to install heat pumps, solar panels, insulation, and work on heat networks by extending its Heat Training Grant and launching the Warm Homes Skills Programme.
Through its Boiler Upgrade Scheme, the government will consult on a wider range of options through the initiative, including air-to-air heat pumps, electric heating technology such as heat batteries and new purchase and ownership models to spread the cost of a heat pump over several years so households can lease them for a monthly fee.
The government said this would allow more households to switch to low-carbon heating and save money.
Miatta Fahnbulleh, minister for energy consumers, said: “Our Warm Homes Plan will mean lower bills and warmer homes for millions of families – helping drive better living standards as part of the Plan for Change.
“Following a record-breaking month for applications to our Boiler Upgrade Scheme, we are now proposing to give working families more choice and flexibility to pick the low-carbon upgrades that work best for them.”
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In March, 4,028 applications were submitted to install heat pumps, an 88% rise on last year.
Fahnbulleh added: “And on top of this, we are investing over £4m in Copeland to continue building a homegrown heat pump industry and training up the army of skilled workers we need to achieve this.”
The government has awarded £4.6m to Copeland in Northern Ireland to expand its manufacturing for heating compression technology for heat pumps.
Sando Matic, Europe president for Copeland, said: “This investment marks a pivotal step in advancing clean energy solutions and driving economic growth.
“By expanding our manufacturing capabilities for heating solutions here in Northern Ireland, Copeland is proud to play a key role in helping to reduce reliance on fossil fuels and supporting the energy transition to more sustainable, electricity-powered heating.”
This week, the government will close its consultation on introducing higher minimum energy-efficiency standards to the private rental sector, requiring landlords to improve properties to an Energy Performance Certificate (EPC) rating of at least a C or equivalent by 2030.
