Future Homes Standard to mandate solar panels for all new homes

This initiative is part of the Future Homes Standard, which aims to ensure that new homes are modern, net zero carbon ready and capable of reducing bills while boosting the nation’s energy security with clean, homegrown power. So, what does this mean for the energy sector? How much power could be generated, and will this impact the delivery of energy?

Currently, the details are vague. However, the Government’s stated intention is for 1.5 million new homes, which equates to potential for up to 5.25GW of solar power to be deployed. This estimate assumes each home will have a system of 3.5kW, which is the average domestic size in the UK, according to Government statistics. However, it is important to note that shading, roof orientation and the available roof space of each individual unit will impact this number. 

Consumer benefits

If all 5.25 GW of solar power is deployed, it has the potential to provide approximately 5 TWh of energy annually, calculated using the UK average solarisation figure of 950 kWh/kWp. This means that for every kWp installed, 950 kWh of energy is generated. This translates to around 3,300 kWh per household each year, which exceeds the typical electricity requirement of an average two to three bedroom house.

Homeowners could benefit significantly from this clean, green power, reducing their energy bills. The UK Government estimates that installing rooftop solar could save a typical existing home around £530 annually, based on the current energy price cap.

Savills research finds that equipping 1.5 million homes with solar panels could save consumers approximately three-quarters of a billion pounds by 2030. With the average household energy bill for gas and electricity at £1,800, these savings represent a significant 30% reduction and a substantial financial boost to homeowners.

Key considerations

While the mandate to include solar panels on all new build homes under the Future Homes Standard offers clear benefits to consumers and the environment, it also presents several important considerations and potential challenges that need to be addressed from various perspectives, including developers, consumers and the supply chain.

With solar panels mandated on new homes, the grid must manage two-way energy flows as households export surplus power. This requires upgrades to local distribution networks to prevent overloads during peak generation. Solar-rich areas, such as southern England, may face localised grid congestion, requiring reinforcement of substations and power lines. Additionally, if zonal pricing is implemented, could localised congestion increase price volatility? Current grid connection backlogs, which can be up to a decade in some areas, could worsen without reform.

The delivery of homes with rooftop solar may also stall if grid upgrades remain developer-funded. Without mandated home batteries, excess solar may strain the grid during sunny periods, requiring utility scale storage investments.

Operationally, the widespread installation of domestic solar panels could affect the economic benefits of export tariffs (SEG/PPA) for homeowners. Will the national grid have sufficient capacity to handle the increased export? An increase in supply may drive export prices down.

The future

If these considerations are addressed and each stakeholder group is considered, the mandate could be highly beneficial for homeowners and the environment. It would promote the clean use of energy and result in more money in people’s pockets, contributing to a sustainable and more prosperous future.

Further information

Contact Henry Cody

Earth Day 2025: Our Power, Our Planet