Solar Energy UK, the trade association for the UK solar industry, published the findings of its Value of Solar Heat report on 1 December 2022. The report states that combining solar power and a heat pump can save up to £3,164 a year on home energy bills1. It was launched at the Solar & Storage Live exhibition at the NEC in October and funded principally by MCS Charitable Foundation1.
The figures are based on the bill capping rates applied from October1. For a typical gas-heated home, the report says installing solar photovoltaic panels could save £1,276 a year, implying a payback period of under six years, while switching to a more modern heat pump could save £1,454, with a longer payback of 14 years but a significantly higher net present value and a fully decarbonised home1. In a best-case gas-heated scenario, annual savings could reach more than £2,997, or £3,089 with a heat pump installed instead1.
| Measure | Annual saving | Payback |
|---|---|---|
| Solar photovoltaic panels, typical gas-heated home | £1,276 | Under six years |
| Modern heat pump | £1,454 | 14 years |
| Best-case gas-heated scenario | More than £2,997 | Not reported |
| Best-case scenario with heat pump | £3,089 | Not reported |
| Solar and heat pump combined, maximum | £3,164 | Not reported |
The report presents case studies from a semi-detached property in Inverness to an end-of-terrace home in London via a Belfast bungalow, and analyses solar power, solar thermal, combined solar power and thermal (PVT) and home storage alongside gas boilers, direct electric heating, heat pumps and infrared systems1. It also states that a solar installation can raise the value of a home by more than £2,000, and that a rooftop solar thermal system at a Bristol leisure centre has eliminated its heating bill, saving nearly 13 tonnes of CO2 each year1.
"For the UK to meet its zero targets, the government must place heat decarbonisation on equal footing with power decarbonisation"
Chris Hewett, chief executive of Solar Energy UK, said the answer to many challenges of the age is solar energy, and that decarbonised heating such as powering a heat pump with a rooftop solar installation not only slashes energy bills but also helps wean the country off dependence on expensive natural gas1. David Cowdrey, Director of External Affairs at MCS Charitable Foundation, said the report shows the future of home heating is renewable energy, and that the Government must make installation of solar panels and heat pumps the default in new-build homes1.
Why it matters for households
The report frames solar panels and household energy independence as a route to lower running costs and reduced demand for natural gas, which it links to energy security1. For a household weighing up a solar thermal system against solar PV, the report analyses both, along with combined PVT systems and home storage1. The payback periods differ sharply between measures, and the report notes that the heat pump scenario carries a longer payback of 14 years despite a higher net present value1. The savings figures are tied to the bill capping rates applied from October 2022, so they reflect that period's prices rather than any later cap1.
What happens next
The report will be followed next month by another addressing the role of solar heating in meeting Scotland's goal of reaching net zero by 2045, which is expected to encourage the Scottish Government to add solar photovoltaics to the heat pump specification in the new Scottish Building Regulations and to continue incentives for on-site renewables1. A second supplementary report, The Value of New Build Solar, is now available, covering the benefits of including solar power in new-build properties, against the Government's objective for 180,000 new and affordable homes to be built annually1. The Value of Solar Heat is the third in a series, following The Value of Solar Homes and last year's The Value of Solar Property1.
Sources1 cited
- Green heating can cut bills by over £3,000 a year • Solar Energy UK, solarenergyuk.org