Heat Pump Grant with Solar Panels: Can You Combine Them?
Heat pumps and solar panels are one of the best combinations for home energy in the UK. The solar panels generate free electricity during the day, and the heat pump uses that electricity to heat your home and hot water. The result: dramatically lower energy bills and a home that is close to carbon neutral for its heating needs.
The great news is that you can combine the BUS heat pump grant with solar panel funding. This guide explains how to stack grants, what funding is available for each technology, and how the combined system can transform your energy costs.
Can You Get Grants for Both a Heat Pump and Solar Panels?
Yes. The BUS grant for heat pumps and funding for solar panels are separate schemes that can be claimed independently. There is no rule preventing you from receiving both. Here is what is available:
Heat Pump Grants
- BUS grant (England and Wales): £7,500 towards an air source or ground source heat pump
- Home Energy Scotland (Scotland): Up to £7,500 grant + £7,500 interest-free loan
- ECO4: Fully funded for eligible low-income households
See our full guide to heat pump grant amounts for details.
Solar Panel Grants and Funding
- 0% VAT on solar panels: Since April 2022, solar panels are VAT-free in the UK, saving approximately £1,000 to £1,500 on a typical installation
- Smart Export Guarantee (SEG): You are paid for surplus electricity you export to the grid — typically 4p to 15p per kWh
- Home Energy Scotland (Scotland): Grants and interest-free loans available for solar panels alongside heat pump funding
- ECO4: Solar panels may be included as part of a whole-house improvement package for eligible households
- Local authority schemes: Some councils include solar panels in their energy efficiency programmes
How to Stack the Grants
Here is a realistic example of how you can combine heat pump and solar panel funding:
Example: England — Heat Pump + Solar Panels
- Air source heat pump cost: £12,000
- BUS grant: -£7,500
- You pay for heat pump: £4,500
- 4kW solar panel system cost (0% VAT): £5,000
- Annual SEG income: £100-£200 per year
- Total investment: £9,500
- Annual energy savings (heat pump + solar): £800-£1,500
- Payback period: 6-12 years
Example: Scotland — Heat Pump + Solar Panels
- Air source heat pump cost: £12,000
- HES grant: -£7,500
- HES interest-free loan: -£4,500
- You pay for heat pump upfront: £0
- 4kW solar panel system cost (0% VAT): £5,000
- HES solar grant: Up to -£1,250
- HES solar interest-free loan: Up to -£3,750
- You pay for solar upfront: £0
In Scotland, it is entirely possible to install both a heat pump and solar panels with nothing to pay upfront, repaying the interest-free loans over time from your energy savings.
Why Heat Pumps and Solar Panels Work So Well Together
The combination of a heat pump and solar panels is more than the sum of its parts. Here is why they complement each other so effectively:
Free Electricity Powers Your Heating
A heat pump uses electricity to generate heat. Solar panels generate free electricity from sunlight. When the sun is shining, your solar panels can power your heat pump directly, meaning your heating and hot water cost nothing during those hours.
Even in the UK, solar panels generate useful amounts of electricity year-round. A typical 4kW system generates 3,400 to 4,200 kWh per year — enough to power a significant portion of your heat pump's annual consumption.
Heat Pumps Multiply Solar Energy
This is the clever part. A heat pump does not simply convert electricity into heat on a 1:1 basis. It generates three to four times more heat energy than the electrical energy it consumes. So every kWh of free solar electricity generates 3-4 kWh of heat.
Put another way: if your solar panels produce 1 kWh of electricity and your heat pump uses it, you get 3-4 kWh of free heating. The heat pump amplifies the value of your solar energy.
Smart Timing for Maximum Savings
With smart controls, your heat pump can be programmed to run harder during the middle of the day when solar production is highest. This means:
- Pre-heating your home and hot water cylinder during peak solar hours
- Using less grid electricity in the evening
- Maximising your self-consumption of solar electricity (using it yourself rather than exporting it for a lower rate)
Battery Storage Adds Even More Value
Adding a battery storage system to the mix takes things further. Surplus solar electricity generated during the day is stored in the battery and used to power the heat pump in the evening and overnight. This can increase solar self-consumption from around 30-50% to 70-90%.
Combined Running Cost Savings
Here is what the combined running costs look like for a typical medium-sized UK home:
Heat Pump Only (No Solar)
- Annual electricity for heat pump: £700-£1,000
- Saving versus gas boiler: £100-£300 per year
Heat Pump + Solar Panels
- Annual electricity for heat pump: £350-£600 (solar offsets 40-50%)
- SEG income from exported electricity: £100-£200
- Net annual heating cost: £150-£400
- Saving versus gas boiler: £500-£1,000 per year
Heat Pump + Solar + Battery
- Annual electricity for heat pump: £150-£350 (solar + battery offsets 70-85%)
- SEG income: £50-£100 (less exported because more is self-consumed)
- Net annual heating cost: £50-£250
- Saving versus gas boiler: £700-£1,200 per year
For personalised estimates, use our heat pump calculator and see our running costs guide.
Installation Considerations
Order of Installation
You can install a heat pump and solar panels in either order, but there are advantages to each approach:
- Heat pump first: Gets you off fossil fuels immediately. You can add solar later to reduce running costs
- Solar first: Starts generating savings immediately. Heat pump can be added later when you are ready for the bigger project
- Both at once: Some installers can handle both installations simultaneously, potentially saving on labour costs and minimising disruption
Finding an Installer
Some installers are qualified to install both heat pumps and solar panels. Using a single installer for both can simplify the process and may result in a better-integrated system. When you get quotes, ask whether the installer also handles solar installations.
Roof Suitability
Solar panels work best on south-facing roofs with minimal shading. East and west-facing roofs can also work well. North-facing roofs are generally not suitable. Your solar installer will assess your roof and recommend the optimal panel layout.
Electrical Supply
Both a heat pump and solar panels may require upgrades to your electrical supply. If you are installing both, it is worth having the electrical work done together to avoid paying for two separate callouts.
Environmental Impact
The combined environmental benefit of a heat pump and solar panels is substantial:
- Heat pump alone: Reduces carbon emissions by approximately 50-70% compared to a gas boiler (using grid electricity)
- Heat pump + solar: Reduces carbon emissions by approximately 80-95% compared to a gas boiler
- Heat pump + solar + battery: Near-zero carbon heating for most of the year
As the UK electricity grid continues to decarbonise (more wind, solar, and nuclear power), the carbon savings from a heat pump will increase further, even without your own solar panels. But adding solar makes your home significantly more self-sufficient.
Is the Combined Investment Worth It?
Looking at the total investment and returns:
- Heat pump after BUS grant: £4,500 (typical)
- Solar panels (4kW, 0% VAT): £5,000 (typical)
- Total investment: £9,500
- Annual savings versus gas: £500-£1,000
- Payback period: 8-15 years
- System lifespan: 20-30 years
After the payback period, you are effectively heating your home for free (or very close to it) for another 10-15 years. Over the full lifespan, the total savings can reach £10,000 to £25,000 compared to staying on gas. Read our guide on whether heat pumps are worth it for a fuller analysis.
Frequently Asked Questions
Can I get the BUS grant and a solar panel grant at the same time?
Yes. The BUS grant is for the heat pump only, and solar panel funding (0% VAT, SEG payments, HES grants in Scotland) is separate. You can claim both without any conflict.
Do I need solar panels for a heat pump to work?
No. A heat pump works perfectly well using grid electricity. Solar panels are an optional addition that reduces your running costs. Many homeowners install a heat pump first and add solar panels later.
How much can I save with heat pump and solar combined?
Compared to a gas boiler, the combined system typically saves £500 to £1,000 per year. If you add battery storage, savings can reach £700 to £1,200 per year. Exact savings depend on your property size, energy use, and solar generation.
Can I use solar panels to power my heat pump at night?
Not directly, as solar panels only generate electricity during daylight. However, with a battery storage system, you can store surplus solar electricity during the day and use it to power your heat pump at night.
What size solar panel system do I need for a heat pump?
A typical 4kW solar panel system (10-12 panels) is a good match for a domestic heat pump. This generates enough electricity to offset 30-50% of the heat pump's annual consumption. Larger systems generate more and offset more.
Is there a grant for solar panels in England?
There is no direct grant for solar panels in England, but they are zero-rated for VAT (saving approximately £1,000-£1,500), and you earn money through the Smart Export Guarantee for surplus electricity exported to the grid. Some local authority schemes also include solar panels.
Want to explore the heat pump and solar combination? Get free quotes from MCS-certified installers who can assess both heat pump and solar suitability for your home. Use our heat pump calculator for cost estimates, or read our complete grants guide to maximise your funding.