Andrew Woodruff, Managing Director of Arrow Energy Solutions, an installer covering the South and Southwest, explores the question.
With our national commitment to improving our sustainability, underpinned by the UK government’s ambitious net zero target, it is perhaps surprising that, even now, the overwhelming majority of homes in the UK don’t have solar panels – and that includes our new build homes too.
While some house builders are making strides in this direction – Taylor Wimpey, for example, reported that in 2023, “20% of our homes integrated on site PV panels”, the fact remains that solar systems remain the exception, rather than the norm, on new homes.
With the clear benefits not only for the planet but for homeowners’ bills, what is holding us back? And what needs to change?
The legislative landscape
At the moment, there are minimum standards for energy efficiency new builds must comply with. The most recent version of the Building Regulations, which came into force in June 2022, requires Standard Assessment Procedure (SAP) calculation and a predicted Energy Performance Certificate (EPC) to be submitted before construction begins.
While including energy-saving measures enables developers to comply with minimum standards, the specifics are left to their discretion – there is no mandatory requirement for new builds to include solar panels.
There are precedents for this out there though. Tokyo, one of the world’s most populous cities, will require solar panels on all new homes from 2025. And in March 2024, Members of European Parliament (MEPs) voted to adopt the EU Solar Standard, which will require the installation of solar on buildings across EU member states.
Scotland’s stricter rules on carbon reduction in new homes introduced in 2016 have also proven effective. The proportion of new builds with solar panels in Scotland increased from 10% in 2016 to 70% – demonstrating the efficacy of a robust regulatory environment in driving the adoption of solar technology.
Andrew underscores the missed opportunities in the UK’s current approach: “The standards we set for new homes can put us on the right path to net zero by 2050, but we need decisive action.
“The advantages of solar are a no-brainer in the vast majority of new homes – it should be a standard practice, not an optional extra, but with any big change in practice in any industry, change is too slow without a legislative nudge in the right direction.
“The new standards coming in 2025 are a step in the right direction but the systems minimum standard will be too small for most residents, who in turn will have to discard and upgrade the inverters and add batteries for it to be of value.
“Bear in mind that new homes will be built with air source heat pumps which are high energy users and their consumption will need to be offset with solar energy. An ASHP almost doubles a home’s energy consumption. Combine that with general home usage, and charging electric cars and the system should not be minimum spec.”
New standards coming
Up until now, the Government has held back from requiring developers to install solar panels, despite support for the idea. The response from the then Government Department for Levelling Up, Housing and Communities, to a petition calling for mandatory solar on new builds explained its position: while they expected “most developers will use solar panels to meet the recent uplift in energy efficiency” they stopped short of making it a requirement to do so in order to “enable innovation and tailoring to individual sites”.
Currently under development, the 2025 Future Homes and Buildings Standard will deliver even higher energy efficiency standards. The aim is that, from next year, new homes and buildings should be ‘zero carbon ready’, with no retrofit work for energy efficiency necessary to enable them to become zero-carbon.
However, the latest consultation document, published earlier this year under the previous government, consulted on two options – one with and one without solar PV panels.
Option 1 includes “high-efficiency solar PV panels covering the equivalent of 40% of the home’s ground floor area” along with a wastewater heat recovery system, increased airtightness and a decentralised mechanical ventilation (dMEV) system.
Option 2, which does not include those elements, would have lower additional build costs but be less beneficial in terms of consumer bills.
Both include, “a high-efficiency air source heat pump and good fabric standards to minimise heat loss from windows, walls, floors and roofs and high performance standards for domestic hot water storage.”
The consultation sets out that option 2 is the minimal approach to achieve ‘zero-carbon ready’ homes that deliver at least 75% carbon savings compared to 2013 energy efficiency requirements. However, it is essential, believes Andrew, that option one is what is taken forward: “The time for half measures is over. We need a clear mandate for solar panels on new builds. The technology is there, the benefits are clear, and the need is urgent. It’s time to act.”
Challenges and incentives
Despite the clear advantages, several factors contribute to the reluctance in making solar panels mandatory. One significant barrier is the initial cost. Installing solar panels can increase construction costs by an estimated £6,200 per home. However, this upfront investment is offset by substantial long-term savings on energy bills, estimated between £910 and £2,120 per year. Over a solar panel system’s lifetime, savings can reach up to £40,000 for a mid-terrace home and upwards of £200,000 for a detached house, a report by Solar Energy UK found.
The same analysis found it was 10% cheaper to install a residential solar system on a new build than to retrofit one. A solar system embedded from the start can also mean greater efficiency can be achieved, with insulation, orientation, and airflow able to be considered during the design phase.
Then there are the obvious benefits in terms of sustainability. The Energy Saving Trust estimates that the average UK home with a solar PV system can reduce carbon emissions by between 1.3 to 1.6 tonnes per year.
The installation of solar panels also aligns with broader trends in the housing market. A survey by Landlord Today found that nearly three-quarters of respondents wanted their properties to be more eco-friendly. More than half of the participants said they would specifically seek out properties with eco-friendly features, and two-thirds indicated they would prefer to buy or rent a property with these attributes. Similarly, Legal & General research shows that 13% of renters are willing to pay a premium for a low-carbon property.
Now is the time
With the rising tide of consumer demand, there is also increasing support within the home building sector. A coalition comprising the Good Homes Alliance and Bioregional, backed by the UK Green Building Council and LETI, wrote an open letter to the Government, prior to the election, urging them to be more ambitious with the Future Homes Standards, highlighting, in particular, the omission of solar panels in the Option 2 notional specifications, and demanding that all new homes incorporate integrated solar PV as a standard feature.
The Local Government Association (LGA) has also come out in support adding: “We strongly support solar PV on the roof tops of all new homes as it can reduce the amount of land required for ground mounted solar.”
There appears to be some political will at national government level too. A survey conducted by YouGov during initial consultation on the new standards, reported that seven out of ten MPs would support the introduction of mandatory solar panels on new builds as part of the Future Homes Standard. Only 13% (just over one in ten) said they would oppose this.
With the new Labour government announcing plans to build 1.5million new homes within five years, and reinstate housing targets for local authorities, now is the time is now to legislate, Andrew believes.
“Labour has been clear about its ambitions to get Britain building homes again with plans for 1.5 million new homes in five years to tackle the acute housing crisis – but I would argue this is also an opportunity and a pivotal moment to tackle the climate and energy crisis.
“We have a unique opportunity to set a strong foundation for the future. However, while a great deal has been said about the huge expansion of housebuilding and an immediate blitz of planning reform, the language of “low carbon” and “net zero” were conspicuous in their absence from these particular announcements. The two must go hand in hand.
“I am still waiting for the ’penny drop’ moment when there is collective recognition of the long-term benefits of integrating solar panels into new builds. The rationale for doing so is clear – not only do they enhance energy efficiency and reduce carbon footprints, but they also make homes more attractive to environmentally conscious buyers and renters, potentially commanding a higher sales price, and saving homeowners money in running costs.
“We already have a huge mountain to climb in terms of improving the current housing stock, so it seems madness to me that we are not moving faster to ensure new homes are properly equipped to be net zero, even net contributors to the decarbonised grid – and for that, solar is the obvious choice.
“We have already seen this with insulation. Only in recent years have new homes had a focus on genuinely insulating homes. We have been retrofitting insulation to old housing stock for years because this was not addressed correctly.
“With home building currently so high on the political agenda, and a surge in building on the horizon, now is the moment to get this right.”
Image credit: Arrow Energy Solutions
