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Emerging Home Energy Technology in England

Can I get paid for a heat pump or solar panels where I live? Who decides if I am allowed to fit them? And why do the rules seem to change from one area to the next?

Grants, planning permission and local rules often pull in different directions, so what you can install and claim for depends on where you are and who signs it off.

A small model of a solar panel and a model of an air source heat pump stand side by side on a table beside blank application paperwork, a plain envelope, a stack of coins and a desk calendar, all arranged as a household weighing up new energy technology.
In this guide
  1. English Figures
  2. Drivers of Activity
  3. England vs Other Nations
  4. Rules for Unproven Products
  5. Household Energy Independence

England carries the largest share of UK home energy demonstration activity, and it also carries the most layered set of rules. A household in England that wants to install an unproven product is dealing with three separate things at once: a funding or payment scheme administered by Ofgem, a building control regime set by the Building Regulations, and a planning position that depends on the property and the local authority. None of those three moves at the same speed.

The payment side is the most concrete. The Feed-in Tariffs scheme was designed to encourage uptake of small-scale renewable and low-carbon technologies in England, Wales and Scotland, and England accounted for 77.80 per cent of installed capacity over the scheme lifetime1. The Smart Export Guarantee replaced it for new applicants and enables small-scale low-carbon electricity generators in Great Britain to receive payments from suppliers2. Both are Ofgem-administered, and both are about electricity rather than heat.

The rules side is where England differs most sharply from the other nations. Building Regulations Part L (Conservation of Fuel and Power) sets standards for energy performance, impacting underfloor heating choices and requiring effective controls and insulation3. Homes are built to higher standards of air tightness under Part L, and on a new build property a maximum permeability rate of 8.0m3 (h-m2) @ 50Pa applies, against around 10m3 (h-m2) @ 50Pa expected on an existing property retrofitted with energy efficiency measures3. From March 2028, new-build homes in England will be required to have on-site renewable energy generation and a low-carbon heating system3. Those are standards for the fabric and the heating system, not an approval of any particular product.

What the English figures actually show

The headline numbers for England are a mix of scheme statistics and national energy statistics, and they answer different questions. The Feed-in Tariffs capacity share is a scheme statistic: 77.80 per cent of installed capacity under that scheme sat in England1. That figure describes where subsidised small-scale generation was built, not where the energy need is greatest.

The national statistics are broader. Between 2023 and 2024 final energy consumption in the UK increased by 2.6 per cent to 128.1 million tonnes of oil equivalent4. That is a UK figure and it covers all end uses, not homes alone. On the generation side, the Scottish Government's annual energy statement puts renewable electricity generation at 29.3 per cent for the UK as a whole, or 25.6 per cent for the rest of the UK excluding Scotland5. Those two figures are not measuring the same thing: one is all final energy consumption, the other is electricity generation, and the share differs depending on which measure is used.

For a household, the practical figure is the one attached to the property. The English Housing Survey 2021 to 2022 energy release is accredited official statistics and covers the English stock8. The energy efficiency characteristics of new dwellings release covers new dwellings in England and those built to the Part L 2021 Standard, and it is published as Official Statistics In Development rather than as accredited statistics. That distinction matters: the new dwellings data is still being developed, so a figure drawn from it carries less weight than one from an accredited release.

What drives English demonstration activity

Three forces push demonstration activity in England: the funding architecture, the building regulations, and the supplier obligations that sit behind smart metering and consumer protection.

The [Energy Bill [HL] 2022-23](/emerging-tech/innovation-funding-for-home-energy-technology/) is the clearest statement of intent. It is centred around three pillars: leveraging investment in clean technologies, reforming the UK's energy system and protecting consumers, and maintaining the safety, security and resilience of the energy systems across the UK9. Those pillars explain why so much demonstration money goes to system-level projects rather than to individual homes. A trial that proves a technology can be coordinated at network level is worth more to the system than a single installation.

The solar roadmap adds a specific commitment. Action 30 states that the UK Government will consider the case to further support companies looking to scale up production of innovative solar technologies, processes and balance of system components10. That is a consideration, not a funding commitment, and it is aimed at manufacturers rather than at householders.

Supplier behaviour is the third driver. Ofgem's consumer vulnerability strategy progress report records that So Energy and Scottish Power both described taking a deliberate approach to innovation, where new tools are intended to support staff decision-making and improve visibility of need, rather than acting as standalone solutions or replacing existing support channels11. That is a useful corrective to the assumption that a new tool automatically improves an outcome. The same report notes that energy suppliers are already testing and trialling the new technology, a statement made in the context of smart metering12.

On the generation side, the Contracts for Difference scheme is the UK Government's main mechanism for supporting new low-carbon electricity generation projects in Great Britain10. It does not fund household equipment, but it sets the wholesale price environment that any home generation or storage economics sit inside.

A cutaway illustration of a house showing a heat pump, hot water cylinder and heating pipework running through the floors, with solar panels on the roof
A cutaway illustration of a house showing a heat pump, hot water cylinder and heating pipework running through the floors, with solar panels on the roof. Image: wolf.eu

How England differs from Scotland, Wales and Northern Ireland

A simple exterior view of a hydrogen-retrofitted terraced house in Wales, drawn as one home in a short terrace, with a few small simplified visitor figures standing outside near the front door as if arriving for an open day.
A terraced house like the hydrogen retrofit home

Energy efficiency is a reserved matter, so the Minimum Energy Efficiency Standards are set by the UK Government13. Housing and building standards are devolved, which is why the four nations diverge on what a home must achieve and on what can be installed without planning permission.

Scotland published new energy standards on 15 June 202214 and consulted on permitted development rights for non-domestic solar panels and domestic air source heat pumps15. The Scottish Government's own annual energy statement gives the renewable generation comparison that puts the UK at 29.3 per cent and the rest of the UK excluding Scotland at 25.6 per cent5. Scotland also set out UK-wide hydrogen trial commitments in its Draft Heat in Buildings Strategy, supporting industry to begin a Neighbourhood trial by 2023 and a large Hydrogen Village trial by 2025, as well as a Hydrogen Town before the end of the decade16. Those were UK Government commitments expressed through a Scottish consultation, and the neighbourhood and village stages were subsequently cancelled.

Wales has run its own local energy work. The Energy Local trial, announced on 15 September 2016, was described as the first UK trial of a local energy market model, supported with £90,00017. Wales also hosts the Cartrefi Hydrogen Homes project, a UK-first hydrogen retrofit of a terraced home opened to visitors on 20 May 2026.

Northern Ireland sits outside the Feed-in Tariffs and Smart Export Guarantee geography. NIE Energy's social action plan records new technology trials including domestic CHP and solar water heating18. Northern Ireland also appears in the heat pump investment roadmap, which refers to bringing 100 new green jobs to Northern Ireland10.

NationPayment scheme geographyDistinctive position
EnglandFeed-in Tariffs and Smart Export Guarantee1Feasibility duty for high-efficiency alternative systems in new buildings3
ScotlandFeed-in Tariffs and Smart Export Guarantee1New energy standards published 15 June 202214
WalesFeed-in Tariffs and Smart Export Guarantee1Energy Local trial, first UK local energy market trial17
Northern IrelandOutside both schemes2NIE Energy trials including domestic CHP and solar water heating18

The rules that bear on an unproven product in England

The English rulebook for a new product has four layers: the Building Regulations, the approved calculation methodology, permitted development rights, and VAT treatment.

Part L is the first layer. Building Regulations Part L (Conservation of Fuel and Power) sets standards for energy performance, impacting underfloor heating choices and requiring effective controls and insulation3. The notice of approval sets out the approved calculation methodologies for calculating the energy performance of new buildings, and it does so under regulations 24 and 25 of the Building Regulations 20106. The National Calculation Methodology for buildings other than dwellings in England was approved in a 2026 version dated 24 March 20266.

The UK Government has proposed replacing the Standard Assessment Procedure with a new methodology, the home energy model, for England and Wales6. That proposal is not yet the operative method, and any product claim resting on a future methodology is resting on something that has not been settled.

Permitted development rights are the second layer and they are narrower than most householders expect. A 2009 consultation on development rights for small-scale renewable and low-carbon energy technologies and electric vehicle charging infrastructure applied to England19. A 2014 consultation on non-domestic solar panels proposed a capacity limit of 1 megawatt instead of 45 kilowatts, in the context of the UK Government's solar strategy15. Neither of those is a current permission; both show how the limits have been argued over.

VAT treatment is the third layer and it has moved. Water turbines were reinstated as energy-saving materials in Great Britain with effect from 1 April 202220. The UK was also required to exclude wind and water turbines from the list of qualifying energy-saving materials in the 2019 changes20. A product's VAT position therefore depends on which list it currently sits on, and that list has changed more than once.

Local designations add a fourth constraint that no national rule overrides. A local listed building consent order, such as the Clifton Local Listed Building Consent Order guidance, sets out what can be done to a listed building in that area21. For a listed property, the local order governs, not the national permitted development position.

A building control approval notice pinned to a site noticeboard beside a fenced new-build dwelling plot, with a small isometric figure of a site visitor pausing to look at the notice, the unfinished house and its foundations visible behind.
Building control approval for a new dwelling in England turns on the approved calculation methodology, not on the product's marketing. Image: Illustration

What this means for a household's energy independence

The honest position is that England's emerging technology landscape gives a household more options and more obligations, but not independence in the sense of disconnection. Every route described here still terminates at a grid connection and a licensed supplier.

The supply side is licensed and territorial. Tesla Energy Ventures Limited was granted an electricity supply licence, and the new licence applies to electricity supply activities in Great Britain only22. That is a reminder that even a new entrant with a strong brand operates inside a licensing boundary, and that Northern Ireland is outside it.

The system side is being reorganised at national level. Great British Energy was launched on 30 October 2024, announced in the Autumn Budget 20247. Great British Nuclear was launched in March 2023 to support new nuclear builds23. Both are public bodies aimed at generation and system resilience. Neither changes what a household can install, what it can claim, or what happens when a product's maker stops trading.

What a household can actually hold is narrower and more useful: a payment for exported electricity under the Smart Export Guarantee, a building that meets the approved calculation methodology, and a product that sits on the correct VAT list. Those are real, and they are worth having. They are also all conditional on a scheme, a regulation or a list that someone else controls.

"The Bill is centred around three pillars"
Energy Bill [HL] 2022-23 research briefing9

The three pillars are leveraging investment in clean technologies, reforming the UK's energy system and protecting consumers, and maintaining the safety, security and resilience of the energy systems across the UK9. Read carefully, the third pillar is about the system's resilience, not the household's. That is the clearest available statement of where the boundary sits.

For a householder weighing an unproven product, the practical questions are whether the product depends on a scheme that could close, whether the maker will still exist to honour a warranty, and whether the installation needs a permission that the property does not have. The technology readiness and product claims page sets out how to read a maker's claim against the evidence behind it, and the demonstration and test homes page covers what a trial household actually experiences. For the wider picture across the UK, the full guide to emerging home energy technology is the starting point.

Sources23 cited
  1. Feed-in Tariffs annual report, scheme year 14, Ofgem, 2024
  2. Smart Export Guarantee annual report 2022-23, Ofgem, 2023
  3. Building Regulations 2010, Part 6, legislation.gov.uk, 2010
  4. Energy Consumption in the UK 2025, UK Government, 2026
  5. Annual energy statement 2019, Scottish Government, 2019
  6. Notice of approval of the methodologies of calculation of the energy performance of new buildings, UK Government, 2026
  7. Autumn Budget 2024, UK Government, 2024
  8. English Housing Survey 2021 to 2022: energy, UK Government, 2023
  9. [Energy Bill [HL] 2022-23](https://commonslibrary.parliament.uk/research-briefings/cbp-8830), House of Commons Library, 2026
  10. Heat pumps investment roadmap, UK Government, 2023
  11. Consumer vulnerability strategy progress report, Ofgem, 2026
  12. Second annual progress report on the roll out of smart meters, UK Government, 2013
  13. Decarbonising private housing: the net zero elephant in the energy inefficient room, Senedd Research, 2026
  14. Transforming heating in homes, Scottish Government, 2022
  15. Permitted development rights for non-domestic solar panels and domestic air source heat pumps, Scottish Government, 2015
  16. Draft Heat in Buildings Strategy, Scottish Government, 2021
  17. £90,000 to spark revolutionary local energy scheme, Welsh Government, 2016
  18. NIE Energy social action plan, Utility Regulator Northern Ireland, 2020
  19. Development rights for small-scale renewable and low-carbon energy technologies and electric vehicle charging infrastructure, UK Government, 2009
  20. VAT energy saving materials and grant funded heating supplies, HM Revenue and Customs, 2022
  21. Clifton local listed building consent order guidance, Bristol City Council, 2026
  22. Tesla Energy Ventures Limited granted electricity supply licence covering Great Britain, Ofgem, 2026
  23. Spring Budget 2023, UK Government, 2023

Brands in this guide

Questions

Answers here, and more on their own pages.

What is the short answer on emerging home energy technology in England?

England runs the largest share of UK demonstration activity, but the money and the rules come from several directions at once. Ofgem administers the Feed-in Tariffs scheme and the Smart Export Guarantee for England, Wales and Scotland, while the Building Regulations set what a new home must achieve. A household can host a trial product, but the grid connection, the tariff and the planning position usually sit with someone else.

Does England have its own hydrogen heating trial?

The hydrogen trial programme was designed UK-wide rather than for England alone. The Draft Heat in Buildings Strategy set out support for a Neighbourhood trial by 2023, a large Hydrogen Village trial by 2025 and a Hydrogen Town before the end of the decade. Those were UK Government commitments, and the neighbourhood and village stages were subsequently cancelled.

Which funding schemes cover England?

The Feed-in Tariffs scheme covered renewable and low-carbon electricity generation technologies in England, Wales and Scotland, and the Smart Export Guarantee enables small-scale low-carbon generators in Great Britain to receive payments from suppliers. Both are administered by Ofgem. England's share of installed capacity under the Feed-in Tariffs scheme was 77.80 per cent over the scheme lifetime.

How do English building rules treat an unproven product?

The Building Regulations require the person carrying out the work to analyse and take into account the technical, environmental and economic feasibility of high-efficiency alternative systems before construction of a new building starts. Those systems include decentralised energy supply based on renewable sources, cogeneration, district or block heating and cooling, and heat pumps. That is a feasibility duty, not an approval of any particular product.

Is the calculation method for new homes changing?

The UK Government has proposed replacing the Standard Assessment Procedure with a new methodology, the home energy model, for England and Wales. Separately, the National Calculation Methodology for buildings other than dwellings in England was approved in a 2026 version, dated 24 March 2026. Both sit under regulations 24 and 25 of the Building Regulations 2010.

What does a trial product do for a household's independence?

It can shift some supply and some control into the home, but it rarely removes dependence. A trial heat pump, battery or hydrogen appliance still needs a grid connection, a licensed supplier and, in most cases, a manufacturer that continues to exist and to honour a warranty. The Energy Bill's three pillars include maintaining the safety, security and resilience of energy systems across the UK, which is a system-level aim rather than a household one.

Are there English rules that differ from Scotland, Wales and Northern Ireland?

Yes. Energy efficiency is a reserved matter, so the Minimum Energy Efficiency Standards are set by the UK Government, but housing and building standards are devolved. Scotland published new energy standards on 15 June 2022 and consulted on permitted development rights for domestic air source heat pumps. Northern Ireland's NIE Energy ran its own new technology trials, including domestic CHP and solar water heating.

Where does Great British Energy fit in?

Great British Energy was launched on 30 October 2024, announced in the Autumn Budget 2024. It sits alongside Great British Nuclear, launched in March 2023 to support new nuclear builds. Both are public bodies aimed at the generation and system side of the energy transition rather than at individual households, so neither changes what a homeowner can install or claim.

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