The government has published its long-awaited Future Homes Standard, though you might be forgiven for mistaking the announcement as an advert for ‘plug and play’ solar panels, such was the emphasis placed on the consumer technology.
Energy security, in the context of Israel’s and the United State’s ongoing war on Iran, looms large over this week’s announcement, inevitably. With or without this geopolitical dimension, solar and renewable sources are obvious platforms for addressing not only Net Zero concerns, but also cost of living issues around the impact of energy prices on household bills.
However, solar panels historically involve large upfront costs that can be off-putting – indeed, out of reach – for many households. That’s where the new ‘plug in’ solar panels come in.
The government intends to drive the rollout of the technology – low-cost panels that can be placed on balconies or in outdoor spaces – through retailers in the coming months. According to the Ministry of Housing, Communities & Local Government (MHCLG), these devices have a good track record in Europe.
The panels are said to be easy to install and can be used directly through a main socket like any other device without the installation costs involved with traditional rooftop arrays. It’s claimed the technology will result in less electricity drawn from the grid, and cut domestic energy bills.
Energy Secretary Ed Miliband said: “The government is determined to fight people’s corner in this crisis, which is why we have acted to prevent unfair practices like price gouging and provided immediate help for the most vulnerable facing spiralling heating oil prices.
“The Iran War has once again shown our drive for clean power is essential for our energy security so we can escape the grip of fossil fuel markets we don’t control.
“Whether through solar panels fitted as standard on new homes or making it possible for people to purchase plug-in solar in shops, we are determined to roll out clean power so we can give our country energy sovereignty.”
Steve Reed, the housing secretary, added: “Building 1.5m new homes also means building high-quality homes that are cheaper to run and warmer to live in.
“As we make the switch to clean, home-grown energy, [this] standard is what the future of housing can and should look like. Not only will these changes protect hardworking families from shocks abroad but will also slash hundreds of pounds off their energy bills every year.”
While there will be some exceptions, including high-rise buildings, the Future Homes Standard introduces a functional requirement to Building Regulations that all new-build homes must include on-site renewable electricity systems. The government anticipates that most of them will be solar.
The Future Homes Standard will also see homes built with low-carbon heating such as heat pumps and heat networks.
Alongside this week’s announcement, the government has also confirmed the technical details of the Home Energy Model (HEM). This is the new, independently quality-assured methodology that MHCLG says will become one of the “approved calculation methodologies” to demonstrate compliance with the Future Homes Standard.
This will support innovation in new-build products, best-practice heat-pump installation, and recognise smart, zero-bills technologies.
The government has also launched a call for evidence on the next steps for the £5bn Warm Homes Fund, as part of the roll out of the £15bn Warm Homes Plan. The fund includes £1.7bn already allocated to consumer loans for clean energy technology, supported by £300m capital investment.
As set out in the Warm Homes Plan, the remaining £3.3bn will be available as “innovative finance” for investments and loans in the building upgrade and retrofit sector, including £600m to be allocated to support low-income homes.
Ed Lockhart, chief executive of the Future Homes Hub, said: “The publication of the Future Homes Standard isn’t just about a change in regulation – it’s a promise to consumers that new homes will be more comfortable, more efficient, and more secure against the volatility of unstable fossil fuel markets.
“[The] announcement sets the timeline for all new homes to meet these higher standards from 2028. The Future Homes Hub is facilitating partnership across the whole housing ecosystem including sharing solutions between homebuilders, housing associations and developers of all sizes to ensure residents feel the full benefits, starting with the Future Homes Standard Ready campaign.”
Matthew Scott, policy manager at the Chartered Institute of Housing (CIH), said: “[The] publication of the Future Homes Standard is the final piece of the jigsaw that will give housing professionals the certainty they need to expand their housebuilding programmes.
“We welcome the government’s decision that all new homes will be built with low-carbon technology and higher levels of fabric performance, which will future-proof current and future generations from fuel poverty.”
Richard Cook, chief development officer at Clarion Housing Group, said: “We welcome the publication of the Future Homes Standard as an important step forward for the sector, providing greater clarity on how we collectively deliver the low carbon homes the country needs.
“At Latimer, this is something we have been actively preparing for over a number of years. Today, the majority of the homes we deliver achieve EPC A or B ratings, and over the past year more than 95% of new homes we’ve completed are fossil fuel free. We have also worked closely with the Future Homes Hub and industry partners ensuring that we continue to learn and adapt ahead of regulation.
“While we will take time to review the detail of the Standard, its direction of travel is clear. We remain committed to working with partners across the sector to deliver high-quality, sustainable homes that are not only better for the environment, but more affordable to run for our residents.”
Jonathan Layzell, chief executive, Stonewater, said: “The Future Homes Standard is an important step towards improving the quality and performance of new homes. For customers, this is about real, practical outcomes – homes that are warmer, more comfortable and cheaper to run from the moment they move in.
“Across our newest developments, customers are already telling us about the difference energy-efficient design makes. Families moving from older, less efficient homes have seen energy bills fall significantly, in some cases nearly halved, helping to reduce financial pressure while improving day-to-day comfort and well-being.
“That is why sustainability and environmental efficiency underpin every new home we develop. By prioritising fabric-first design, low-carbon heating and smart technologies that help customers understand and manage their energy use, we are reducing energy demand at source and helping people feel the benefits in their everyday lives.
“With the right clarity on implementation, the Future Homes Standard can embed energy-efficiency across the sector, ensuring more people can move into homes that are affordable to live in and built for the future.”
Simon McWhirter, chief executive at the UK Green Building Council, said: “We welcome the government’s decision to adopt the more ambitious Future Homes Standard, putting new homes firmly on a path away from fossil fuels and ensuring rooftop solar and improved levels of energy efficiency are the new norm. This will help lower household energy bills, reduce pressure on the electricity system, and give industry the confidence to invest in skills, supply chains and innovation.”
Dr David Crosthwaite, chief economist at BCIS, said: “The Future Homes and Buildings Standards are vital yet ambitious, aiming to deliver energy-secure, lower-carbon buildings that can generate value for occupants and owners, without undermining developer viability.
“Achieving this balance will be challenging. Larger developers may be better placed to absorb additional capital costs through economies of scale, but for SMEs, managing these requirements may prove more difficult, particularly in a housing market sensitive to changing economic conditions and consumer demand.
“Flexibilities, such as solar exemptions for higher-risk buildings, may provide some relief, but protecting business margins will require coordinated action to ease cost pressures across the supply chain.”
He added: “Set against ongoing geopolitical uncertainty, the government must pull every available lever. This includes maximising energy cost reductions for materials and product manufacturers to strengthen the Building Safety Regulator’s capacity.
“Doing so could be key to avoiding unintended strain on delivery, particularly for smaller developers. At the same time, businesses can take greater control by using robust, up-to-date data and benchmarks to model project costs in a way that reflects the realities of these new standards.”
Dhara Vyas, Energy UK’s chief executive, said: “The Future Homes Standard is a landmark moment for clean energy in Britain. New homes built under this standard will benefit from clean heating solutions and solar, protecting households from volatile gas prices and putting energy security within the home itself.
“Combined with higher fabric efficiency standards, these homes will be warmer and cheaper to run – offering real and tangible change in people’s homes.
“Critically, plans for rooftop solar with the possibility for households to export excess energy back to the grid mark a genuine shift in how people can engage with the energy transition, easily allowing them to save money from an increasingly flexible energy system.
“The Future Homes Standard gives businesses the long-term certainty they need to invest in manufacturing, scale up supply chains, and build the skilled workforce that will make the targets set in the Warm Homes Plan a reality.”
Chris Hewett, chief executive, Solar Energy UK, said: “Expanding solar energy and battery storage is a rapid and inexpensive solution to the looming energy crisis – for cutting bills, for the economy and for our nation’s energy security. From the largest installations to the smallest domestic systems, every battery and panel counts towards weaning us off reliance on imported and polluting fossil fuels.”
Read next: Newcastle welcomes £80m investment in communities
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