What is the MHHS Government Programme?

MHHS Programme

Market-wide Half-Hourly Settlement (MHHS) is a government mandate that requires UK energy suppliers to settle energy trades and payments every half hour (MHHS Programme).

Save Money and Cut Carbon: How the 2025 MHHS Reforms Make Heat Pumps, Solar PV, and Batteries a No-Brainer

As energy prices soar and concerns about climate change grow, homeowners are increasingly seeking ways to cut costs and reduce their carbon footprint. For many, the solution lies in renewable energy technologies like heat pumps, solar PV, and battery storage. At Boxergy, we specialise in installing and optimising these systems to maximise savings for our customers while making energy greener and smarter for all. Starting in September 2025, the UK’s energy market will undergo a revolutionary change with the introduction of the Market-Wide Half-Hourly Settlement (MHHS) reforms. These changes will bring even greater benefits to homeowners with renewable energy systems, making now the perfect time to invest in heat pumps, solar PV, and batteries. In this blog, we’ll explore the current and future advantages of these technologies, showing you how they can save you money and slash your carbon emissions.

The Current Benefits of Heat Pumps, Solar PV, and Batteries

1. Substantial Cost Savings One of the biggest advantages of renewable energy systems is the potential for significant cost savings. Let’s take a real-life example:Annual Energy Usage: A home using 12,000 kWh per year, with 7,000 kWh generated by solar PV, and a 27 kWh battery to store excess solar or charge during off-peak grid hours.Smart Tariffs: By leveraging time-of-use tariffs, the homeowner charges their battery and heats their water during cheap off-peak periods (midnight to 05:30 a.m.), reducing reliance on expensive peak electricity.Cost Comparison:Renewables: Annual energy bill of £850.Conventional Power: Using a petrol car, gas heating, and standard grid electricity would cost £3,729 per year.That’s a saving of nearly £2,880 every year just by switching to renewables.
2. Dramatic Carbon Savings In addition to financial benefits, renewable systems dramatically reduce your carbon footprint:Renewable System CO₂ Emissions: 280 kg/year (mainly from grid electricity imports).Conventional System CO₂ Emissions: 5,400 kg/year (from petrol, gas, and grid electricity).Carbon Reduction: Switching to renewables cuts emissions by 95%, saving over 5,100 kg of CO₂ per year. That’s equivalent to planting more than 200 trees annually.
3. Energy Independence and Stability Solar PV and batteries give homeowners greater control over their energy use:Daytime Solar Usage: Power your home during the day with free solar energy.Battery Storage: Store excess solar power for use during the evening or charge your battery from the grid during off-peak hours to avoid high tariffs.Export Income: Earn money by exporting surplus solar energy back to the grid at rates of around 15p/kWh.

MHHS Programme: What’s Changing in 2025?

The Market-Wide Half-Hourly Settlement (MHHS) reforms, starting in September 2025, will transform the way electricity costs are calculated and billed in the UK. Under this system, energy suppliers will be required to settle their costs with the grid based on actual half-hourly consumption data from smart meters.

Key Features of MHHS:

1. Accurate Billing: Bills will reflect real-time energy usage instead of relying on estimated consumption profiles.
2. Time-of-Use Tariffs: More suppliers will offer tariffs that encourage shifting energy use to off-peak times, saving you money.
3. Demand Response Programs: Homeowners can earn rewards or discounts by reducing or shifting energy use during peak demand periods.

Future Benefits Under MHHS Programme:

1. Enhanced Cost Savings With MHHS, time-of-use tariffs will become even more beneficial for renewable-ready homes:Optimised Battery Use: Store cheap electricity during off-peak hours and use it during peak times when prices are highest.Smart Scheduling: Heat your water or charge your EV during low-cost periods, further reducing your bills
2. Participation in Demand Response Programs Homeowners can actively participate in grid stability by:Reducing energy use during peak periods in exchange for financial incentives.Using battery storage to avoid peak-time grid reliance, helping to balance supply and demand.
3. Increased Competition and Better Tariffs MHHS will encourage energy suppliers to develop innovative tariffs, creating more options tailored to renewable-ready homes. This competition will drive down costs and offer better value for consumers.

MHHS Programme: Real Challenges and How Boxergy Helps

1. Space Constraints for Heat Pumps Switching to a heat pump often requires installing a hot water cylinder, which takes up significant space (typically 1m x 1m footprint). In smaller homes, this can be challenging.Boxergy Solution: We design systems that fit your space and minimise inefficiencies, ensuring your cylinder placement maximises performance and keeps costs low.
2. Upfront CostsThe initial investment in heat pumps, solar PV, and batteries can seem daunting. However, the long-term savings and government incentives make it worthwhile. Boxergy Solution: We help you access grants and provide tailored systems to maximise your return on investment.

MHHS Programme: Why Act Now?

1. Rising Energy Prices Delaying your switch to renewables could cost you thousands of pounds in the long term. With energy prices continuing to rise, the financial case for heat pumps, solar PV, and batteries has never been stronger.
2. Get Ahead of MHHS Reforms By installing a renewable energy system now, you’ll be perfectly positioned to benefit from the additional cost savings and incentives coming with the MHHS reforms in 2025.

Case Study: A Homeowner’s Energy Transformation

Before:

• Petrol car, gas heating, and grid electricity.
• Annual costs: £3,729.
• CO₂ emissions: 5,400 kg/year.

After:

• Heat pump, solar PV, battery storage, and EV.
• Annual costs: £850.
• CO₂ emissions: 280 kg/year.

Savings:

Financial: £2,880/year. Carbon: 5,120 kg/year.

At Boxergy, we’re passionate about helping homeowners save money and reduce their carbon footprint. Our comprehensive service packages include:

• Expert installation of heat pumps, solar PV, batteries, and EV chargers.
• Maintenance and care packages to keep your system running efficiently.
• Smart tariff advice to maximise your savings.

Contact us today to book a consultation and discover how we can transform your home energy system, saving you money and cutting your carbon emissions – both now and under the exciting new MHHS reforms.

Author: Jim Laidlaw, CEO & Founder at Boxergy

Visit Jim’s LinkedIn profile.