Heat Pump vs Solar: Which Saves More Money in 2025?

Marius Andronie

5 min readJan 21, 2025

Heat pumps and solar panels are two leading options for reducing energy bills in 2025. Here’s a quick breakdown:

Heat Pumps: Provide heating and cooling, cost £5,000-£12,500 (with UK incentives), last up to 20 years, and are highly efficient (up to 400%). Require regular servicing.
Solar Panels: Generate electricity, cost £15,500 (UK) after incentives, last 25+ years, and require minimal maintenance. Save £462 annually on average.
Combination: Using solar panels to power a heat pump can cut energy bills by 72%, saving £564 annually for a typical home.

Quick Comparison

Both options are great for cutting costs. Combining them delivers the highest savings and reduces grid reliance.

Heat Pumps, Solar, and Battery Backup in 2024

Cost Breakdown: Installation, Efficiency, and Maintenance

Comparing Installation Costs

When it comes to upfront costs, heat pumps range from $3,000 to $15,000, while solar systems typically cost $20,948 on average after tax credits . Government incentives, like the Boiler Upgrade Scheme in the UK or solar tax credits in the US, can make these systems much more affordable.

Energy Efficiency and Output

Initial costs are only part of the story — efficiency is a key factor in long-term savings. Heat pumps are extremely efficient, generating about 3.5 times the energy they consume. However, in colder climates, this efficiency can drop as heating demands rise. Solar panels, on the other hand, convert 15–20% of sunlight into electricity, providing free energy once installed.

For a typical three-bedroom home, combining a heat pump with solar panels can save £564 annually on heating bills. While efficiency is important, overall savings also depend on maintenance needs and the system’s lifespan.

Maintenance and Lifespan

Solar panels require little upkeep, lasting over 25 years with minimal maintenance and standard warranties . Heat pumps, however, need more frequent professional servicing and have a lifespan of 15–20 years . These maintenance costs can impact your long-term savings.

Pairing solar panels with heat pumps can help offset the extra electricity heat pumps consume — around 3,200 kWh per year — reducing reliance on the grid and keeping energy expenses lower .

Savings Potential: Short-Term and Long-Term

Heat Pump Savings in 2025

Heat pumps are incredibly efficient, producing 3.5 units of energy for every unit of electricity they consume. Thanks to the Boiler Upgrade Scheme in the UK, installation costs are reduced to £5,000, making them a more affordable option. For a typical three-bedroom home, electricity use increases by about 3,200 kWh annually, but the system’s high efficiency leads to noticeable savings. While heat pumps offer immediate reductions in energy costs, solar panels shine in delivering long-term financial benefits.

Solar Energy Savings in 2025

Solar panels can save homeowners around £462 per year. Incentives like the 30% US tax credit bring the cost of an average 10.8 kW system down to $20,948 . The actual savings depend on factors like location and the size of the system. Here’s a quick comparison:

Combining Heat Pumps and Solar Panels

Pairing a heat pump with solar panels can significantly boost savings. By using solar energy to power the heat pump, households can save £564 annually and cut grid reliance by 72% .

“Running a heat pump with a solar & battery system can save the typical three-bedroom household £564 per year, which is 72% less than powering a heat pump with grid electricity alone”.

This combination offers an efficient and cost-effective way to reduce energy bills and grid dependency, paving the way for a more sustainable future.

Comparison Table: Heat Pumps and Solar Panels

Pros and Cons of Heat Pumps and Solar Panels

Here’s a quick breakdown to help you weigh your options for 2025:

Your choice between heat pumps and solar panels largely hinges on your energy needs and budget. Heat pumps are great for efficient heating and cooling, while solar panels provide electricity and reduce reliance on the grid.

Keep in mind that each system’s performance depends on factors like your location and property setup. For example, solar panels need ample roof space and good sunlight exposure. Heat pumps, on the other hand, require both indoor and outdoor installation areas. Local climate and energy costs also play a role in determining savings and efficiency.

Many homeowners find the best results by combining both systems. Using solar power to run a heat pump can boost energy efficiency and reduce dependence on external electricity sources. This pairing is especially appealing if you’re aiming to cut costs and emissions simultaneously.

Ultimately, the best choice will depend on your property, priorities, and financial plans.

Conclusion: Choosing the Right Option for 2025

Key Takeaways

Heat pumps and solar panels each bring their own strengths to the table. Heat pumps are highly efficient for heating and cooling, delivering 3–4 units of heat for every unit of electricity used. They also come with moderate upfront costs, making them an attractive option for immediate climate control.

For households looking to maximize savings, combining both technologies is a game-changer. Pairing heat pumps with solar panels and battery storage can cut energy costs by up to 72% for a typical three-bedroom home. This setup could lower annual running costs to just £220 — saving £564 compared to relying solely on grid electricity .

With the financial and functional benefits outlined, the next step is finding the right provider and tailoring the solution to your specific needs.

Choosing the Best Energy Solution Provider

Selecting the right energy provider involves more than just comparing costs. Here’s how to make a well-informed choice:

Assess your property for roof space and installation areas.
Factor in incentives like the Boiler Upgrade Scheme to reduce upfront costs.
Look into combined systems to achieve the highest efficiency.

Your location, property type, and energy consumption patterns will play a big role in determining the best option for you. Working with certified installers or energy experts ensures the system is properly sized and installed to meet your needs effectively.

FAQs

What is better, a heat pump or solar panels?

Here’s a breakdown based on 2025 data:

Heat pumps can reach up to 400% efficiency, meaning they provide 4 units of heat for every unit of electricity used. On the other hand, modern solar panels convert about 20% of sunlight into electricity. Costs differ significantly: heat pumps in the UK average £12,500 to install (which can drop to £5,000 with the Boiler Upgrade Scheme), while a standard 5kW solar panel system in the U.S. costs about $14,345 before incentives.

Over their lifespan of 25 years, solar panels can save homeowners tens of thousands of dollars, depending on factors like location and system size. For the best results, many households pair the two systems. A three-bedroom home using both can cut annual energy bills to £220, slashing costs by 72% compared to relying solely on grid electricity.

When it comes to maintenance, heat pumps need regular servicing and typically last 15–20 years, while solar panels require minimal upkeep and usually last over 25 years. Together, these technologies create an efficient and cost-effective home energy system, with solar panels supplying the electricity to power the heat pump.