This paper evaluates the operational performance of Smart Grid Ready (SG-ready) heat pumps integrated with rooftop photovoltaic (PV) systems for a single-family prosumer dwelling. A rule-based control logic is developed to dynamically determine the operating mode of the heat pump (Enhanced, Normal, or Off) as well as the room temperature setpoint based on the grid tariff, thermal requirements, and PV availability. In particular, the rule-based framework governs the routing of PV generation; deciding when to store excess as thermal energy and when to export to the grid. It also influences the amount of load drawn from the grid and at what time-of-day tariffs. Five different rules are considered spanning various combinations of SG-ready mode activation points and choice of room setpoints. Simulation of these five strategies over the winter period (December to February) for four cities – London, Oslo, Tokyo, and Berlin – is reported here. The dynamic use of SG-ready modes for the heat pump combined with setback temperature strategies and PV use reduces costs by nearly 13 to 50% in our simulations across the considered locations. The maximum savings are observed in the strategy that uses SG-ready modes and uses higher setpoints at night and lower setpoints during the day to utilize solar heat gain. Results underscore the influence of local climate, electricity tariffs, and solar availability on system performance. This study demonstrates that integrating rule-based control with SG-ready capabilities significantly improves flexibility and operational efficiency in PV-enabled residential heating systems.