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June 2025 NEED Report: UK Heat Pump & Solar Power Trends
- From: James Parker
- Published 1 August 2025
The June 2025 requirement report highlights the latest developments in using renewable energy in the UK, with a focus on heat pumps.
MCS is based on rapid development, developed policies, and what it means for owners and installers, data, and government figures.
Surge in Installations: Heat Pumps & Solar
Heat Pumps
- In May 2025, more than 5,150 certified heat pump installations were registered, which marked a brief growth from last year (5,084 in May 2024).
- Q12025 saw a record-rab 15,758 installed and jumped 22% from Q12024.
- For 2024 throughout the year, MCS-certified companies reached 58,176, with a total hydronic installation of 98,469, 63% from the previous year.
- At the beginning of January 2025, January was installed at 4,743 (+25%) and March was installed at 5,604 (+22%).
Solar PV & Battery Storage
- The 21,100+ certified Solar PV systems in May 2025 had an increase of 30% from May 2024, which is more than 100,000 years to year.
- March 2025 recorded 22,599 PV installs (+49 %), pushing total certified installations to over 1.7 million.
- Battery storage also broke records with 3,400 installs in May, more than doubling year-over-year.
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What’s Driving the Momentum
Subsidies & Schemes
- The boiler upgrade scheme (BUS) provides grants up to £ 7,500 instead of gas boilers with heat pumps, supported by financing since 2022.
- Additional eco and VAT relief schemes have reduced the costs of advance and running.
- MCS certification ensures quality and qualification for schemes such as SEG and BUS.
Regulatory Shifts
- Future Homes Standard (launch of 2025-2027) mandates low-carbon and photovoltaic system heating in most new homes.
- Planning improvements now allow heat pumps to be installed within 1 meter from the property boundaries, making retrofitting in terraced homes.
Impacts on Homeowners & Installers
For UK Homeowners
- Low energy calculation: Average savings of £ 530/year in new buildings with sun and heat pumps.
- The cost in advance is reduced by grants (eg BUS, ECO), although misconceptions on the performance of heat pumps persist.
- Home retrofitting may require insulation upgrades to maximize efficiency.
For Installers
- Installer demand is climbing; pilot training schemes show hands-on experiences build competence.
- Accreditation (MCS) remains essential to access grants and tariffs.
- Installer surveys show homeowners still fear costs, noise, and reliability—installers must communicate effectively around these issues.
| Key Statistics from the June 2025 NEED Report | |||
|---|---|---|---|
| Metric | May 2024 | May 2025 | % Growth YoY |
| Heat Pump Installations (Monthly) | 5,084 | 5,150 | 0.013 |
| Heat Pump Installations (Q1 Total) | 12,900 (est.) | 15,758 | 0.22 |
| Solar PV Installations (Monthly) | ~16,200 | 21,100 | 0.3 |
| Solar PV Installations (March only) | ~15,100 | 22,599 | 0.49 |
| Battery Storage Installations (Monthly) | ~1,600 | 3,400 | 1.12 |
| Total Heat Pumps Installed (All Time) | ~260,000 | 300,000+ | — |
| Total Solar PV Installations (All Time) | ~1.6 million | 1.7 million+ | — |
Future Outlook: What's Next?
- New-build mandate: from 2025–27, almost all new homes will have heat pumps and solar PV.
- Smart tech evolution: Heat pumps with smart controls and enhanced performance will become mainstream in 2025.
- Scale targets: to meet net‑zero goals, ~3 million heat pumps must be installed by 2030—a huge scale-up from 100k/year.
- Cost rationalisation: Reducing electricity tariffs is critical for maintaining momentum.
Conclusion
The computer in June 2025 requires a promising but challenging scenario. Heat pump installations are climbing, Solar PV expansion shows strong speed, and battery storage crosses a new threshold.
The government’s support is increasing through grants, construction rules, and installation programs. However, the cost of measures for electricity, consumer education intervals and necessary retrofitting in the house was established after the obstacles in 2016.
For the owners of the British house, the message is clear: affordable, talented and subsidized supported renewable systems are now possible. For installer programs, intensive skills and effective customer communication will be important as demand increases.
When the UK moves towards its clean zero, the trends in this 2025 report suggest a real change, but it will determine continuous policy, cost control and emergency preparation of the workforce.
Frequently Asked Questions
The establishment is increasing due to strong state support that requires low carbon heating in new homes such as boiler upgrade scheme, value added tax and new building rules. These steps make renewable energy systems more cheap and accessible.
The homeowner can get up to £ 7500 through the boiler upgrade form to install the heat pump. Smart Export Guaranty (SEM) as a VAT cut and encouragement for solar users, all aims to reduce advanced equipment and long-term costs.
Demand for a certified installation program is increasing rapidly. Training programs are expanded to fulfill the requirement, and MCS recognition is necessary to reach state grants. The installer must also address concerns about noise, costs and performance.
On average, the owners of the house in the new building can save around £ 530 per year on energy bills. With reduced installation costs, the Akshaya system becomes a smart long-term investment.
