Government Mandates Solar Panels for New Build Homes
The government has announced that solar panels will be required on the "vast majority" of new build homes in England, with Energy Secretary Ed Miliband confirming that the regulations will be published this autumn as part of the Future Homes Standard.
Under the new rules, developers will be legally required to fit solar panels to new homes unless specific exemptions apply, such as buildings covered by shade or other exceptional circumstances. This represents a significant shift from current building regulations, which do not compel developers to install solar panels.
The policy differs from the previous Conservative government's proposal, which would have required solar panels covering 40% of a building's ground area but allowed developers to install nothing if they couldn't meet this threshold. Instead, the new Labour approach mandates that even if developers cannot achieve full coverage, they must still install some solar panels except in rare cases.
Miliband stated that solar panels would save the typical household £500 annually on energy bills. However, industry estimates suggest the policy could add between £3,000 and £4,000 to the cost of building a home, though homeowners are expected to save more than £1,000 on their annual energy bills according to some reports.
When asked about potential cost increases for buyers, Miliband said he didn't expect the changes to affect house prices significantly.
Industry Response
The Home Builders Federation has expressed support for increased solar panel installation but warned against introducing "burdensome" administrative requirements that could hamper the government's target of building 1.5 million new homes by 2029. Neil Jefferson, head of the federation, noted that approximately two in five new homes already have solar panels and that the industry is "getting increasingly used to incorporating solar panels within the building of new homes."
However, Jefferson cautioned that requiring individual exemption applications for every home could slow the delivery of new housing due to administrative burdens.
Chris Hewett from Solar Energy UK suggested that local authorities would need to be "vigilant" in ensuring developers meet their obligations, though he described the rules as "quite easy to enforce." He estimates that around 90% of new build homes would need to comply with the new requirements.
The solar industry acknowledges the need to train more installers to meet increased demand, with Hewett confirming this is something the sector is actively working on.
The regulations will be included in the Future Homes Standard, expected to be published in autumn 2025, with a transitional period allowing developers to adjust to the new requirements. Full implementation is expected by 2027.
Environmental Context
The move forms part of the government's broader strategy to reduce carbon emissions and achieve net zero by 2050. Residential buildings currently account for 20% of the UK's greenhouse gas emissions, and the Climate Change Committee has stated that near complete decarbonisation of housing stock is essential to meet climate targets.
Solar power generation in the UK has reached record levels this year, with output between January and May 42% higher than the same period in 2024, though it remains the country's sixth largest electricity source.
What This Means for New Build Buyers
For those purchasing new build homes, this development means that solar panels will become a standard feature rather than an optional extra. While this may contribute to higher purchase prices, the long-term energy savings could offset initial costs. New homeowners should also be aware that the presence of solar panels may affect mortgage applications and insurance requirements.
The government has also indicated it will offer loans and grants for solar panel installation on existing homes, suggesting broader support for renewable energy adoption across the housing market.
