The net zero economy grew by 10% in 2024, adding £83bn to UK gross value added. That is not a forecast from a campaign group. It is the verdict of a government-commissioned analysis published this week, and it changes the arithmetic for every homeowner weighing a heat pump or solar array.
As reported by Solar Power Portal, the government has doubled down on its climate ambitions, citing the booming green sector as both environmental necessity and economic opportunity. The message to UK households is clear: the policy direction is locked in, and the financial case for retrofitting has never been stronger.
What the net zero boom means for your energy bills
The £83bn figure covers everything from offshore wind farms to loft insulation installers. For a typical 3-bed semi in Manchester or Bristol, the practical effect is twofold. First, government grants for heat pumps and solar panels are unlikely to be cut, the Boiler Upgrade Scheme currently offers £7,500 toward a heat pump, and the Smart Export Guarantee pays households for excess solar electricity.
Second, the jobs growth, 640,000 roles across the sector, means more local installers, shorter waiting times, and greater competition on price. Ofgem data shows heat pump installations rose 40% year-on-year in 2024, partly because supply chains have caught up with demand.
Who qualifies, and who doesn’t
Every homeowner in England, Scotland, and Wales can apply for the Boiler Upgrade Scheme if they replace a fossil-fuel boiler with an air-source or ground-source heat pump. The grant is deducted from the installer’s quote, not paid to you directly. Solar panels are not covered by that scheme, but the 0% VAT on energy-saving materials, including solar, batteries, and insulation, runs until 2027.
The catch is eligibility for the Warm Homes Plan, which targets low-income households with free or heavily subsidised upgrades. Officials confirmed to the Energy Saving Trust that the scheme will expand in 2025, but postcodes and income thresholds are still being finalised. Glazing is standard-rated for VAT at 20%. The zero rate for energy-saving materials covers insulation, heat pumps and solar panels; HMRC names secondary and double glazing as excluded (VAT Notice 708/6).
What it costs a typical 3-bed semi
A standard 4kW solar PV system costs £5,000–£6,000 installed, according to industry averages. Glazing is standard-rated for VAT at 20%. The zero rate for energy-saving materials covers insulation, heat pumps and solar panels; HMRC names secondary and double glazing as excluded (VAT Notice 708/6). Annual savings on electricity bills typically range from £300 to £600, depending on usage and orientation. Payback comes in 10–15 years, well within the 25-year lifespan of the panels.
A heat pump costs £7,000–£13,000 after the £7,500 grant, comparable to a new gas boiler plus radiator upgrades. Running costs are roughly equal to gas at current price caps, but lower if you pair the pump with solar panels and a battery. The Energy Saving Trust estimates a well-insulated home can save £100–£200 per year on heating bills with a heat pump versus gas.
EPC impact and property value
Improving your EPC from D to C can add 5–14% to a property’s sale price, according to research by the Department for Energy Security and Net Zero. Solar panels alone can lift a rating by one band if the home is already well insulated. Heat pumps require good insulation to work efficiently, so the two upgrades are complementary.
But the government’s own data shows 60% of UK homes still have an EPC of D or below. That is the retrofit gap the net zero economy is meant to close. With the 2025 deadline for banning gas boilers in new homes already law, and a consultation on phasing out fossil-fuel heating in existing homes due this year, the direction of travel is fixed.
What to do now
Households considering solar or a heat pump should book a free survey from an MCS-certified installer by the end of March 2025. The Boiler Upgrade Scheme currently has no waiting list, but demand is rising. The Great British Insulation Scheme closed on 31 March 2026. It funded insulation measures only and never covered windows or glazing. Check your EPC on gov.uk first. The next price cap announcement is due in February 2025, and any rise will only shorten the payback period on every green upgrade you make.
Frequently Asked Questions
Yes. The scheme offers £7,500 off the cost of an air-source or ground-source heat pump and is open to homeowners in England, Scotland, and Wales. The grant is deducted from the installer's quote. Applications are processed through certified installers, not directly by homeowners.
A standard 4kW system costs £5,000–£6,000 and saves £300–£600 per year on electricity bills. Glazing is standard-rated for VAT at 20%. The zero rate for energy-saving materials covers insulation, heat pumps and solar panels; HMRC names secondary and double glazing as excluded (VAT Notice 708/6). Payback typically takes 10–15 years, and the Smart Export Guarantee pays for surplus electricity exported to the grid.
