Heat Pumps & Solar Panels: Grants and Savings Explained

When it comes to investing in renewable energy, most property owners are motivated by two things: cutting down on bills and doing their bit for the planet. The good news is that with the right systems and support, you can do both. Thanks to the UK government offering grants and incentives, the switch is more affordable than ever.

Whether you're thinking of fitting solar panels, installing a heat pump, or both, here’s what you need to know about the financial benefits available — including how to make the most of the Smart Export Guarantee (SEG) and the Boiler Upgrade Scheme (BUS).

Why Financial Incentives Matter

Switching to renewable energy can feel like a big leap, especially when you're faced with upfront costs. That’s where grants and guarantees come in. They’re designed to help homeowners adopt greener technologies without bearing the full financial load themselves. With support from schemes like the BUS and SEG, you're not only lowering your running costs — you’re also helping the UK move closer to its net-zero targets.

What is the Smart Export Guarantee (SEG)?

If you’ve got solar panels generating electricity at home, you might not use all the energy you produce. The Smart Export Guarantee lets you sell any surplus energy back to the National Grid, meaning your panels could earn you money even while you’re out of the house.

To be eligible, your system must be certified by the Microgeneration Certification Scheme (MCS) and fitted with a smart meter that records how much energy you export. The SEG applies to a range of renewable sources, including solar PV, wind, and hydro systems, as long as they’re under 5MW in size.

Payments vary between energy suppliers, so it's worth shopping around to find the best rate. Some offer fixed tariffs, while others track the market. Either way, it’s a great way to get some return on your investment — and make the most of every kilowatt-hour your home produces.

The Boiler Upgrade Scheme (BUS)

Replacing your old gas or oil boiler with a low-carbon heat pump is one of the most impactful changes you can make to reduce emissions. But it can be costly upfront. That’s why the government introduced the Boiler Upgrade Scheme — offering grants to help cover the installation costs.

As of 2024, the BUS offers a flat £7,500 grant for both air source and ground source heat pumps. 

To apply, you don’t need to wade through forms yourself. Instead, your installer applies on your behalf. Once they’ve confirmed your property is eligible and the installation meets all the criteria, the grant is taken off your final bill. You only pay the difference, making the whole process much more straightforward for homeowners.

How Much Could You Save?

While the upfront investment in heat pumps and solar panels can seem daunting, the long-term savings can be substantial — particularly as energy prices continue to fluctuate.

A well-installed heat pump can cut your heating bills by hundreds of pounds a year, especially if you’re switching from oil, LPG or older electric heating. Pair it with solar panels, and your home could be generating much of the electricity it needs, further reducing your bills.

Some homeowners have reported saving over £1,000 a year after switching to this kind of system — especially when they take full advantage of both the SEG and the BUS. While savings do depend on the size of your home, insulation levels and usage habits, the trend is clear: the more self-sufficient your energy setup, the less you’re handing over to your utility company each month.

The Environmental Upside

There’s no getting around it; home heating and electricity account for a big chunk of the UK’s carbon emissions. Heat pumps work by drawing energy from the air or ground and converting it into usable heat, using electricity rather than burning fossil fuels. That means they’re far more efficient and much cleaner than gas boilers.

Likewise, solar panels harness the power of the sun — a completely renewable source — and reduce your reliance on grid electricity, which often comes from less eco-friendly sources.

And let’s not forget: the more homes that switch to renewable systems, the quicker the UK can cut emissions on a national scale.

How to Get Started

If you're ready to explore the benefits of renewable energy at home, here's a simple way forward:

First, assess your property. A good installer — like Green Flare — can visit your home and determine whether it's suitable for solar, heat pumps, or both. Next, check your eligibility for grants. Green Flare will walk you through what's available, including the Boiler Upgrade Scheme and how to make the most of SEG payments.

From there, they’ll handle the paperwork, make sure your system is MCS-certified, and ensure your installation goes smoothly from start to finish. That includes registering your SEG with your chosen energy provider and applying for the BUS on your behalf.

Why Work with Green Flare?

Green Flare has been helping homeowners embrace cleaner, more efficient energy for over 14 years. With a highly qualified team — some with expertise up to PhD level — and full MCS accreditation, they’re trusted by customers across the UK for good reason.

They don’t just sell and fit renewable energy systems. They take time to understand your property and energy needs, design the right solution and support you every step of the way. Whether you’re curious about what savings might be possible, or you’re ready to go ahead with an installation, Green Flare offers honest, expert advice that puts you in control.

Final Thought

With energy costs still a worry for many, and climate concerns rising, now’s the perfect time to invest in renewable technology for your home. Grants like the BUS and schemes like SEG make it easier than ever — and with Green Flare in your corner, you’ll have expert support from start to finish.

Curious how much you could save? Get in touch with Green Flare today for a free consultation and let’s start your journey to a greener, more cost-efficient home.