New research shows that households living in a typical semi-detached new build would save an average of £1,342 a year, if the Government mandates solar panels, heat pumps and battery storage for all new homes.   

The cumulative savings on energy bills for an average three-bed semi-detached home with solar panels, heat pump and battery storage would be £46,612 over a 25-year mortgage term, according to the modelling.  

The Government is considering options for updated building, due to come into effect next year. The options currently being considered for the Future Homes Standard include the following:  

• Option 1: Requiring solar panels as well as heat pumps or low-carbon heat networks for all new builds.  

• Option 2: Requiring heat pumps or low-carbon heat networks for all new builds, but without solar panels.  

The MCS Foundation commissioned detailed modelling of the energy bills and savings associated with these two options, as well as a third option which would mandate battery storage alongside solar panels and heat pumps, in a variety of housing archetypes.  

Government estimates suggest that adding additional renewable energy technologies into new build homes would increase development costs by just over £5,000 for an average home. However, The MCS Foundation’s new report shows this upfront cost is far outweighed by the savings for homeowners thanks to reduced energy bills.   

Crucially, the benefits for both carbon reduction and energy bills are greatest when renewable energy technologies are combined, rather than installed in isolation. Installing solar panels as well as a heat pump would result in energy bills nearly three times lower than installing a heat pump only.   

Having a meaningful array of solar panels, as well as a heat pump would deliver up to £1,040 of savings for an average semi-detached home. Add in battery storage, and yearly savings rise to £1,342, with cumulative savings rising to £46,612 for a three-bed semi-detached home.  

The report shows that all housing archetypes from flats to large, detached properties would see energy bills savings with a meaningful array of solar panels, battery storage and heat pumps.

Despite the significant benefits for households of installing solar panels and batteries in new builds, the previous Conservative government designated Option 2 as its preferred option for the Future Homes Standard which would not mandate solar panels. It did not propose any option that would have included battery storage.   

The MCS Foundation is calling for the new Labour Government to mandate solar panels and battery storage as well as heat pumps in new build homes.   

David Cowdrey, Acting Chief Executive of The MCS Foundation, said: “With many people once again facing the worry of rising energy bills this winter, the Government has an opportunity to ensure that new homes are insulated from future energy price shocks.   

“Installing the full range of solar panels, heat pumps, and battery storage in new homes at the point of construction will lock in low bills and low carbon emissions. Crucially, missing out any one of these technologies will result in unnecessarily higher energy bills. 

“We should not be building homes in 2025 that need to be retrofitted, at much greater cost, in ten years’ time and so a forward-looking Future Homes Standard should be implemented in full and without delay.”  

Gemma Grimes, Director of Policy and Delivery at trade association Solar Energy UK, said: “Requiring newbuild homes to have solar, heat pumps and battery storage would be a welcome triple whammy in the fight against high energy bills. Doing so would also improve national energy security and boost economic growth. Although we have every expectation that solar and heat pumps will be mandated, The MCS Foundation is right to demand that the new Labour Government urgently reconsiders excluding batteries from the Future Homes Standard.”  

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Notes to editors  

• The report can be read here: https://mcsfoundation.org.uk/wp-content/uploads/2024/09/MCSF-Future-Homes-Savings-Report-FINAL.pdf   

• YouGov surveys on behalf of The MCS Foundation have found that eight in ten UK adults believe solar panels should be mandatory on all new-build homes.