The government published its consultation on the Future Homes Standard and Future Buildings Standard on 13 December 2023, setting out two options for new homes in England and recommending solar PV on new non-domestic buildings1. The consultation covers the energy efficiency of homes and buildings in England and is effectively a replacement for the Zero Carbon Homes policy, announced by then-chancellor Gordon Brown in 2006, which would have required new homes to generate at least as much energy as they consumed for heating, hot water, ventilation and lighting from 2016, but was scrapped by David Cameron in 2015 following lobbying by the building sector1.
Both options for homes feature a high-efficiency air source heat pump and good fabric standards to minimise heat loss from windows, walls, floors and roofs1. Option 1 includes high-efficiency solar PV panels covering the equivalent of 40% of the home's ground floor area, alongside a wastewater heat recovery system, increased airtightness and a decentralised mechanical ventilation (dMEV) system1. Option 2 does not include those elements1. The consultation does not state explicitly which option is preferred, although it describes not adopting solar energy as the "minimal option"1.
The two options differ in build cost and running cost savings:
| Option | Additional build cost | Annual heating and hot water bill saving |
|---|---|---|
| Option 1 | £6,200 on average | £910 to £2,120 |
| Option 2 | About £1,000 above the current baseline | £210 to £1,420 |
A lower electricity bill would come on top of the option 1 savings, though it is not described in the consultation1. For context, the cost to retrofit a typical existing home to net zero standards, before subsidies are considered, would be about £12,000, or more if fabric upgrades are needed1.
The performance standards are based on "notional buildings", a model of energy performance, using air-source heat pumps or high-efficiency fourth-generation heat networks, amendments to which are being consulted on separately1. On fossil fuels, the consultation states:
"We found no practical way to allow the installation of fossil fuel boilers while also delivering significant carbon savings and 'zero-carbon ready' homes. As such, we do not expect fossil fuel heating, such as gas, hybrid heat pumps and hydrogen-ready boilers, will meet these standards. The standards proposed are also unlikely to allow the installation of biofuel systems, including wood and manufactured solid fuels"
For non-domestic buildings, the consultation recommends solar PV spanning 40% of the building's foundation area and heat pump heating for buildings lit from the side, such as offices, hotels and schools, or 75% for top-lit spaces such as warehouses and sports halls, with radiant electric heating1. Cost increases would be small: 2.1% for option 1 or 1.9% for option 2 for an air-conditioned office, while adopting option 1 for warehouses would add almost 6% to costs1.
Chris Hewett, Chief Executive of trade association Solar Energy UK, said a heat pump and a solar installation make a great pairing, and that the association's Value of New Build Solar report illustrates savings of up to £40,000 over their lifetime for a mid-terrace home, or upwards of £200,000 for a detached house1. He said it is shocking that not making solar effectively mandatory on new homes is even on the table1.
Why it matters for households
The standards would shape what a new home in England comes with as built, and therefore what a household would otherwise have to add later. Under option 1, solar PV and a heat pump would be part of the package, with the estimated bill savings above; under option 2, the same heating technology would apply but without the solar, wastewater heat recovery, airtightness and dMEV elements, and with lower build costs and lower running cost savings1. The consultation's position that fossil fuel heating, including gas, hybrid heat pumps and hydrogen-ready boilers, is not expected to meet the standards indicates the direction for heating and hot water in new homes1. The comparison with retrofit costs, at about £12,000 for a typical existing home before subsidies, sets out the difference between building these measures in and adding them afterwards1.
What happens next
Implementing regulations are expected to be published next year, to enter into force in 20251. The consultation on the Future Homes Standard and Future Buildings Standard is open, and the separate consultation on the Home Energy Model, the replacement for SAP, is running alongside it1. The two options for new homes are set out in the consultation, and the carbon reduction expected under the standard is among the matters it addresses. The proposals apply to England; energy and buildings policy in Wales, Scotland and privately rented homes in Scotland are handled separately. The department responsible is DESNZ.
Sources1 cited
- Solar panels set to be standard on new homes and buildings • Solar Energy UK, solarenergyuk.org