Budget 2025: What It Means for Solar, Heat Pumps & Home Energy Upgrades in the South West

The 2025 Budget has landed — and while there were no headline-grabbing new grants for solar or heat pumps, there were several important updates that directly affect homeowners across Cornwall, Devon, and the wider South West.

In this simple explainer, we break down what’s changed, what’s stayed the same, and what it means for anyone planning solar, heat pump, or battery upgrades in 2025.

More Funding for the Warm Homes Plan – A Boost for Renewable Heating

The biggest announcement affecting home energy upgrades is the increase in funding for the Warm Homes Plan — the government’s long-term scheme replacing ECO4.

What this means for South West households

• More support available for low-income and hard-to-heat homes.
• More funding for insulation, energy-efficiency measures, and eligible heating upgrades.
• Greater certainty for installers and homeowners planning projects into 2026 and beyond.

While the Warm Homes Plan does not replace the Boiler Upgrade Scheme (BUS), it adds extra funding routes for households that previously may not have qualified for help.

This means homeowners in Cornwall and Devon considering energy upgrades now benefit from a more stable and better-funded overall landscape.

Heat Pumps Gain More Advantage as Energy Pricing Shifts in 2025

The Budget confirmed continued adjustments to electricity and gas pricing structures. Although not dramatic, the changes make running a heat pump even more cost-effective compared to oil, LPG and mains gas.

Electricity pricing update

Electricity costs are expected to fall slightly over the next 12 months, continuing the trend from 2024. This benefits heat pump homes the most — especially those pairing a heat pump with solar PV or battery storage.

Gas & oil outlook

Gas remains volatile, and oil prices continue to swing with global markets. For many South West homes still on oil or LPG, a heat pump supported by the £7,500 BUS voucher is now even more financially attractive.

No New Solar Grants — But Solar Remains a Strong 2025 Investment

There were rumours before the Budget that new solar incentives might appear — but none made it into the final document.

However, nothing negative was announced either, meaning:

• 0% VAT on solar and battery installations continues
• Grid connection reform continues to move forward
• Solar demand remains strong across the South West

H3: How the Budget impacts solar payback

With electricity rates adjusting, solar PV payback periods may shift slightly — but overall:

• Solar still offers excellent returns
• Battery storage continues to shorten payback even further
• Homeowners in Cornwall benefit from some of the highest solar yields in the UK

Search volumes for “solar grants 2025 UK” have spiked since the Budget, showing strong public interest — but homeowners should know that the most important support already exists: VAT relief, strong generation, and falling equipment costs.

What About Solar in Cornwall & Devon Specifically?

The South West continues to be one of the UK’s strongest regions for solar PV.

H3: Why solar remains especially worthwhile in the South West

• Higher average annual sunshine hours
• Good payback even without new grants
• Ideal conditions for pairing solar with heat pumps and batteries
• Large rural areas with high oil/LPG usage — perfect for full electrification

For anyone searching for Solar Panels in Cornwall or Devon, the message is simple: the Budget doesn’t slow things down — if anything, it strengthens the long-term case.

The Boiler Upgrade Scheme (BUS) Remains Unchanged — Still £7,500 Off Heat Pumps

The BUS remains one of the strongest renewable incentives in the UK — and nothing in the Budget reduces or threatens it.

The government confirmed:

• Funding continues into 2026
• The £7,500 upfront grant stays in place
• No changes to eligibility

This stability is great news for South West homeowners considering switching from oil, LPG, or older gas boilers.

Should You Wait or Go Ahead in 2025?

For most households, the Budget reinforces the case for not waiting.

Solar

✔ Good payback
✔ No negative policy changes
✔ Demand and prices stable

Heat Pumps

✔ £7,500 BUS still available
✔ Electricity costs improving
✔ Warm Homes Plan creates extra support routes

Batteries

✔ Remain one of the best ways to reduce grid reliance
✔ Huge benefit when paired with heat pumps

If you’re planning a low-carbon upgrade in 2025, the Budget helps provide confidence and clarity.

Get Personalised Advice for Your Home

Every home is different — roof size, insulation, heating type, usage patterns.
GreenGenUK’s award-winning team can show you exactly what the Budget changes mean for your home.

Whether you’re at the very beginning of your research or ready to take the next step, our expert team is here to help.

Fill in our form here, call us on 0800 093 3299 or email us at [email protected]

Our team covers The entire South West – Cornwall, Devon, Somerset, Dorset, Bristol and now Gloucestshire, with award-winning expertise in heat pump design and solar installation.