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Solar and heat pump jargon explained: a plain-English glossary

kWp, SEG, MCS, G98, DNO, BUS: the terms you'll meet in a solar or heat pump quote, each explained in a sentence or two, with links to our full guides.

The short answer

Quotes for solar panels and heat pumps are full of abbreviations. This glossary explains each one in plain English, so you can read a quote with confidence and ask the right questions. Terms are grouped by topic.

Solar panels and electricity

  • kW (kilowatt): a measure of power, how fast electricity is made or used at a moment in time.
  • kWh (kilowatt hour): a measure of energy, the amount of electricity made or used over time. Your bill charges you per kWh.
  • kWp (kilowatt peak): the most power a set of panels can make in ideal conditions. It is how system size is described: a typical home system is about 4.5kWp, roughly 12 panels. See how many panels you need.
  • Inverter: the box that turns the electricity your panels make (direct current) into the kind your home uses (alternating current). It usually needs replacing once during the life of the panels.
  • Hybrid inverter: an inverter that can also charge and run a battery.
  • Self-consumption: the share of your solar electricity you use yourself rather than export. A battery raises it a lot.
  • Battery capacity (kWh): how much electricity a battery can store. The Energy Saving Trust says a typical home battery might be 10kWh. See is a battery worth it?
  • Payback period: how many years the savings take to cover the cost of the system. Try our solar savings calculator.

Getting paid and your bills

  • SEG (Smart Export Guarantee): the scheme that requires larger energy suppliers to pay you for the solar electricity you send to the grid. Rates vary by supplier. See our SEG guide.
  • Export meter: a smart meter that records how much electricity you send to the grid, so you can be paid for it.
  • Price cap: the most suppliers can charge per kWh and per day on a standard variable tariff, set by Ofgem every three months.
  • Time-of-use tariff: a tariff where electricity costs less at certain times, often overnight. Useful with a battery or heat pump.

Standards, rules and paperwork

  • MCS (Microgeneration Certification Scheme): the standard for home solar, battery and heat pump installers. An MCS certificate for your system is usually needed for export payments and for government grants and loans.
  • RECC and HIES: consumer codes that MCS installers belong to. They set rules on how installers sell and protect your deposit and workmanship. See our checklist for comparing quotes.
  • DNO (distribution network operator): the company that runs the local electricity network. Your installer must tell them about your system.
  • G98: the simple process for smaller systems (up to 3.68kW of inverter output per phase on a typical home): the installer tells the DNO within 28 days of switching on.
  • G99: the process for larger systems, which need the DNO’s permission before installation.
  • Permitted development: the rules that let most homes in England fit solar panels without applying for planning permission. See do you need planning permission?
  • EPC (Energy Performance Certificate): a rating of your home’s energy efficiency from A to G. Some grants use it to decide who qualifies.

Grants, loans and tax

  • 0% VAT: solar panels, batteries and heat pumps installed in homes are zero-rated for VAT until 31 March 2027. See what ends in March 2027.
  • BUS (Boiler Upgrade Scheme): a grant of £7,500 off an air or ground source heat pump in England and Wales, or £9,000 until 31 March 2027 for homes heated by oil or LPG with no mains gas connection. See our Boiler Upgrade Scheme guide.
  • Warm Homes Loan Scheme: cheaper government-backed loans for solar panels, batteries and heat pumps, available through participating lenders.
  • Warm Homes: Local Grant: council-run grants in England for lower-income homes. See our guide to grants and loans.

Heat pumps

  • Air source heat pump: a unit outside your home that takes heat from the air to heat your home and hot water.
  • Ground source heat pump: takes heat from pipes buried in the ground, in trenches or a borehole.
  • SCOP (seasonal coefficient of performance): how much heat a heat pump gives out for each unit of electricity over a year. A SCOP of 3 means three units of heat for every one of electricity.
  • Hot water cylinder: a tank that stores hot water. Most heat pumps need one. See how much a heat pump costs.

What to do next

Ready to see what solar could do for your home? Get free solar quotes, or find out more about heat pumps.

Sources

  1. Energy Saving Trust: Solar panels (updated 1 Oct 2026)
  2. Ofgem: Smart Export Guarantee
  3. SSEN: Installations up to 3.68kW per phase (G98)
  4. GOV.UK: Boiler Upgrade Scheme, what you can get (updated 1 Oct 2026)
  5. GOV.UK: Extension of VAT energy-saving materials relief (11 Jan 2024)
  6. Energy Saving Trust: In-depth guide to heat pumps (16 July 2026)
  7. Energy Saving Trust: Solar panel battery storage (6 Oct 2026)
  8. Energy Saving Trust: Warm Homes Local Grant, a guide for local authorities
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