Solar Panels and Heat Pumps: The Perfect Partnership for North East Homes

Published on:
10 November 2025

As the UK transitions away from gas boilers toward renewable heating, heat pumps are becoming increasingly common across the North East. They deliver major carbon-reduction benefits, but because they run on electricity, energy bills can still concern homeowners. That’s where solar panels transform the equation. Combining solar generation with heat pump heating creates a powerful partnership—cutting costs, reducing grid dependence, and making homes truly sustainable.

The Heat Pump Transition

The UK government plans to phase out gas boilers by 2035, making heat pumps the standard heating option. Air source heat pumps (ASHPs) are now widely installed across Newcastle, Northumberland, and County Durham, supported by government grants and growing installer expertise.

Despite myths, heat pumps perform well in the North East’s moderate climate. They can extract heat from outside air down to –15°C, and since the region rarely experiences extreme cold, conditions are ideal for efficient operation.

A typical gas-heated home in the region uses 12,000–15,000 kWh of gas annually, costing £720–£900 at 6p/kWh. A comparable heat pump system might use 3,000–5,000 kWh of electricity—thanks to its high efficiency—but at 26p/kWh, running costs reach £780–£1,300.

While still competitive with gas, those electricity costs highlight an opportunity for solar energy to provide low-cost, home-generated power.

Why Solar and Heat Pumps Work So Well Together

Solar and heat pumps complement each other perfectly:

  • Daytime heating demand: When the heat pump maintains indoor comfort during daylight hours, solar generation can directly power it—reducing grid reliance.
  • Seasonal synergy: In spring and autumn, heating needs remain moderate while solar production rises. These months deliver the best overlap between heat pump demand and solar output.
  • Load matching: Heat pumps create a steady daytime electrical load that uses solar generation efficiently, avoiding low export payments (4–5p/kWh) and instead saving 26p/kWh in avoided grid costs.
  • Future-proofing: As electricity prices rise, generating your own power shields you from market volatility and ensures long-term savings.

Real-World Performance

Consider a three-bedroom semi-detached home in the North East with a 6 kW heat pump using around 4,000 kWh of electricity per year. A 4 kW solar panel system in this region produces roughly 3,200 kWh annually.

Without a battery, about 30–40% of solar output coincides with heat pump operation—saving £250–£330 annually on heating alone, or £400–£500 when including other daytime use.

Adding an 8–10 kWh battery raises self-consumption to 60–75%, powering more heating in the evening and boosting total annual savings to £600–£800. Over 25 years, that’s £10,000–£20,000 in lifetime savings, depending on future electricity prices.

Seasonal Patterns

  • Summer: Solar peaks (400–500 kWh/month), but heating demand falls. Energy powers appliances or charges batteries for evening use.
  • Spring & Autumn: The sweet spot. Generation remains high (200–350 kWh/month) while heating needs persist. Solar can provide 40–60% of the heat pump’s energy.
  • Winter: Solar output dips (80–150 kWh/month) as heating demand rises. Even so, every kWh generated displaces costly grid electricity during peak-price months.

Although you won’t heat your home entirely from solar in winter, annual generation significantly reduces total electricity use.

The Role of Battery Storage

For homes with heat pumps, battery storage often makes strong financial sense.

  • Evening heating: Batteries store daytime solar power for evening heating when generation stops.
  • Weather flexibility: Storage smooths out cloudy conditions, ensuring a steady supply.
  • Extra benefits: Some systems earn income through grid-balancing services or provide emergency backup during power cuts.

A typical 8–10 kWh battery adds £3,500–£5,000 to installation costs but can deliver £200–£300 extra annual savings. Payback is around 15–18 years—reasonable given lifespans exceeding 25 years.

System Sizing and Design

Homes with heat pumps generally need larger solar systems:

  • Without a heat pump: 3–4 kW suits typical households using 2,700–3,500 kWh per year.
  • With a heat pump, 5–6 kW is preferable for a total annual use of 6,000–8,000 kWh.

Even if roof space limits installation to 4 kW, the system still delivers excellent savings. Every kWh you generate offsets grid electricity at full retail value.

Which Comes First—Solar or Heat Pump?

It depends on your priorities:

  • Install a heat pump first if your boiler needs replacement or you want to access the £7,500 Boiler Upgrade Scheme.
  • Install solar first if your current heating is functional, but you want to cut electricity bills immediately.
  • Install both together for maximum efficiency, often saving on scaffolding, electrical work, and design integration.

The 0% VAT incentive applies to both solar panels and batteries, while the heat pump grant covers much of the upfront cost. Combined, they make renewable heating far more affordable than many expect.

Smart Controls and Energy Management

Modern systems use intelligent controls to maximise synergy between solar, heat pumps, and batteries.

  • Solar-aware controls can pre-heat your home or water when generation peaks.
  • Energy management systems coordinate all devices to prioritise the most efficient power use.
  • Time-of-use tariffs let you top up batteries with cheap overnight electricity to supplement solar.
  • Apps and dashboards give real-time visibility into generation, consumption, and savings—helping you fine-tune performance.

Why the North East Is Ideal

The North East enjoys conditions that favour this renewable pairing:

  • Moderate temperatures enhance heat pump efficiency.
  • Cooler air improves solar panel output compared to hotter regions.
  • Strong installer networks and growing expertise ensure high-quality installations.
  • Grid infrastructure upgrades across the region support both increased generation and export.

Environmental Impact and Long-Term Value

Beyond the financial case, solar-heat pump systems deliver impressive carbon reductions.

A typical North East home currently emits 3–4 tonnes of CO₂ annually from heating and electricity. Installing a heat pump with a 4 kW solar system cuts emissions by 70–80%, saving roughly 3 tonnes of CO₂ every year—equivalent to planting 120 trees.

Over 25 years, that’s 60–75 tonnes of avoided CO₂, while providing energy independence, comfort, and resilience against price hikes.

Making the Investment

A combined system costs around £15,000–£25,000, but with grants and incentives:

  • £7,500 Boiler Upgrade Scheme grant
  • 0% VAT on solar panels and batteries

Net investment typically falls to £10,000–£18,000, with annual savings of £800–£1,200. Payback ranges from 8–15 years, followed by decades of continued benefit.   

The Takeaway

For homeowners across the North East, pairing solar panels with a heat pump delivers the best of both worlds—low running costs, reduced emissions, and protection from rising energy prices. It’s a smart, forward-looking investment that turns your home into its own renewable power station—clean, efficient, and built for the future.