ALL new homes must have solar panels and heat pumps under Government's eco plan: What you need to know
- Do solar panels save you money on bills? Editor@thisismoney.co.uk
All new homes built in England must generate their own green energy from 2028, under new rules implemented by the Government today.
In practice, it means no new-build homes will have gas boilers, and most will have to come equipped with solar panels and heat pumps.
Heat pumps are an alternative to a traditional gas boiler that use electricity to transfer heat from the air or ground to the home.
The Government said it would save families up to £830 per year on their energy bills.
Energy secretary Ed Miliband said: '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.'
However, critics have pointed out that these plans won't help the vast majority of Britons who don't live in a new-build home, while developers have warned that the panels will add to the cost of building homes and aren't suitable for many properties.
Here is what you need to know about solar panels, heat pumps and what to expect from 2028.
Going green: Solar panels will be fitted on most new homes from 2028 under new rules
What are these new plans?
The requirement for homes to generate their own green power is known as the Future Homes Standard.
This means that from 2028, newly-built homes will no longer have gas boilers and instead must be fitted with heat pumps or linked to heating networks.
In addition, most new homes must be built with renewable electricity generation on site.
Generally this will mean being fitted with solar panels. Homes must have solar panels on their roofs covering an area equivalent to 40 per cent of the ground floor space.
Developers have warned that solar panels on this scale could be a challenge for some homes.
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The last major update to energy efficiency requirements for new homes was in 2013, when housebuilders became subject to new standards on insulation, heating, and ventilation.
Also today, the Government is enabling energy companies to offer discounted energy bills to customers who live near wind farms on windy days, rather than continuing the previous default practice of paying wind turbines to turn off.
This will mainly benefit those living in Scotland and the East of England where more turbines are located.
How will the rules be enforced?
Renewable energy generation will now be a requirement under the section of the Building Regulations which sets out rules for sustainability and energy efficiency.
These are legal standards that housebuilders have to meet. If they don't, they could be forced by the local council to knock the properties down.
Will it make homes more expensive?
It is estimated that the cost to developers of complying with the new rules could be £10,000 per home on average, according to the BBC.
This is a cost they would probably pass on to buyers of the new-build homes. It could be recouped over the long term in the form of cheaper energy bills, but this would take years.
Pushing up costs? Installing solar panels and heat pumps (pictured) on new homes could add £10,00 to the price, estimates suggest
What are the building challenges?
Housing experts have also warned that it is not always easy to install solar panels on homes, and that the new rule could slow down the building of new homes.
Neil Jefferson, chief executive of the Home Builders Federation, told the BBC: 'The Government has really pushed the number of solar panels that are required on rooftops right to the limit, we think 60 per cent of homes can't actually reach that standard.
He added: 'Each home will have to be looked at individually. There are some challenges within the process [and] we don't want bottlenecks.'
How much money do solar panels save?
A family moving into a new-build home kitted out with a heat pump and solar panels could notice substantial savings on their bills.
However, this will all depend on how energy-efficient their previous home was. Someone coming from a draughty Victorian house could see a big difference, while someone moving from a well-insulated, fairly new home might not notice a big change.
Announcing the policy, the Department for Energy Security and Net Zero estimated that its new measures could save a typical household £830 a year on its energy bills.
This is compared to a standard home with an energy performance certificate rating of C. EPC ratings go from A (the best) to G (the worst) and the average home is rated D.
According to solar panels installer Sunsave, some customers save £90 per month on their energy bills when they have the panels installed.
Savings can also depend on how much sun your home gets, and at what times.
This is why solar panels can save homeowners much more money if they have a battery system installed.
A battery also means that they can store solar energy when it is sunny, and use it later on. They can also export excess energy back to the grid and get paid for it.
Without a battery, the solar energy can't be used at night and so households will need to use energy from the grid, limiting their savings.
Nigel Banks, zero bills director at Octopus Energy, said: 'Heat pumps and solar panels slash bills - so it makes sense to build them into new homes from day one.
'And with a battery added to the mix, some homes could even pay nothing at all for their home energy.'
However, installing a battery system adds to the overall cost. According to The Renewable Energy Hub, a standard solar system costs between £5,000 and £8,000, but adding a battery can increase this to between £8,000 and £14,000.
How many homes already have solar panels?
Estimates from 2025 suggest around 1.5million households in the UK have solar panels. However, early reports indicate interest from homeowners could be rising because of the conflict in the Middle East.
On 17 March, supplier Octopus Energy said it had seen a 27 per cent rise in solar installation enquiries since the war began.
Some energy experts have pointed out that today's announcement won't help the majority of Britons who don't live in a new-build home, however.
From Ben Graves, co-founder of Sunsave, said: 'Millions of UK households have rooftops that could be generating their own electricity right now, yet the upfront cost of a typical solar system remains around £10,000.
'That's out of reach for most people, meaning solar savings remain locked away from the households who need them most.'
On the rise: More homeowners have enquired about getting solar panels since the start of the Middle East crisis, according to Octopus
Are there any exceptions?
High-rise buildings won't be subject to the new rules due to logistical challenges. Solar panels on the roof of an apartment block could not generate enough energy to power all the flats.
A lack of space can limit flat owners' ability to use an air source heat pump, although versions that can be installed on balconies are available. Some blocks of flats also have a communal ground source heat pump.
There are also exceptions where the home's size or design doesn't allow for the requirement that the panels cover the equivalent of 40 per cent of the floor space.
What about plug-in solar panels?
Alongside today's Future Homes Standard announcement, the Government also said it would make it easier for people to buy plug-in solar panels that could be installed on a balcony for example.
These are set to be available in supermarkets such as Lidl and on Amazon.
They are cheaper versions of solar panels which are already available in other European countries. In Germany, almost half a million new devices are plugged in every year.
However, they haven't previously been available in the UK because of electrical safety regulations.
Luke Osborne, technical director of Electrical Safety First said that its investigations had concluded that 'at present, plug-in solar systems supply power to household circuits in a way currently not permitted by regulations.'
The Government plans to introduce new safety standards before the panels are made available to the public, which the charity said it welcomed.
However, Osborne added: 'With the introduction of any new technology comes the risk of substandard versions making their way onto the market through unscrupulous sellers, and we continue to call for online marketplaces to be better regulated, to prevent unsafe products being available to households now and in the future.'
