The introduction of more stringent rules on energy efficiency for new homes in England has driven a surge in solar panel installations.
The proportion of new homes and buildings that come with solar photovoltaic panels included has risen by more than three times in the last twelve months.
Solar PV Ltd estimates that 45,070 newbuild homes were completed in England over the fourth quarter of last year, the latest for which figures are available.[1] Figures from the Microgeneration Certification Scheme (MCS), the standards body for smaller-scale sustainable energy systems, say that 18,954 installations were made on newbuild properties over the same period. Assuming that all of these were on homes indicates that 42% of these new homes are solar-powered.
That is a dramatic jump compared to only 5,731 of 44,310 newbuilds sporting solar panels in the last quarter of 2023 – only 13%.
“It’s a reasonable assumption that at least 40% of new English homes now have solar power, given the clear trend in the data. It will certainly be a much higher proportion by the end of the year, when the transition to an upgraded energy efficiency requirement under the Building Regulations should be complete. Comparable rules in Scotland led to 80% of new homes having panels fitted.
“There has been much attention lately on the next iteration of the Building Regulations, the Future Homes Standard, which we expect will all but mandate substantial solar installations on new homes. But is important to recognise how the existing rules are driving growth in the industry, while cutting emissions and bills for homeowners. The numbers demolish any suggestion that the solar industry would be unable to scale up to meet even greater demand under the forthcoming standard,” he added.
The recent increase results from revised ‘Part L’ rules on residential energy efficiency, which have applied in full since June 2023. Although welcome, a consequent fall in the average size of systems is rather less so.
“Before the new rules, fitting solar power to new homes in England was driven by either local planning requirements or the preference of self-builders. Planning conditions were applied on a site-wide basis and tended to mean that solar installations were concentrated on a few homes, to comply in the most convenient and cost-effective way. In contrast, self-builders would ensure that their installation was of the right size to make a cost-effective contribution towards meeting their own energy requirements,” said Stuart Elmes, Chief Executive of roof-integrated solar manufacturer Viridian Solar.
So, as the proportion of new homes with solar photovoltaic panels built by private developers has risen, average capacity for newbuilds has declined, going from about four kilowatts at the end of 2023 to only 2.4kW in Q4 this year.
James Bull, Founder and Sales Director at newbuild PV specialist UPOWA said: “Solar PV panels are one of the most reliable and cost-effective technologies available that deliver proven energy and carbon savings for new build homes. It’s no surprise then that we’re seeing more and more housebuilders choose solar as their preferred renewable energy solution to future-proof residential developments to meet the changing Building Regulations landscape.”
“We’ve also seen a rise in interest from our housebuilder customers who now offer battery storage and PV array upgrades when bought off plan. Integrating battery storage at the point of the construction is not only easier to install and more economical, but it also helps housebuilders go one step further to creating zero-carbon-ready homes that are fit for the future,” he added.
Meanwhile, the number of solar retrofits to existing homes has hovered around 8,000 to 10,000 each month in England for more than a year. Driven by a combination of high energy prices, low installation costs and environmental concerns, the number remains far greater than before the energy price crisis.
Both newbuild and retrofit aspects of the market have driven the number of rooftops with smaller-scale solar installations across the UK to over 1.6m – over 180,000 in 2024 alone. For England, the figure stands at 1.3m, 169,000 of them coming since January 2024.
Most MCS-scale installations, below 50 kilowatts’ capacity, are mounted on home roofs, with a smaller proportion being fitted to schools, small businesses, community buildings and the like. A typical residential installation is around 4kW.
“The rapid increase of solar PV installations in new builds over the past year highlights the importance of strong regulation in driving sector growth and demonstrates the industry’s capability to step up to meet rising demand. As the market for solar PV in new builds continues to grow, it’s crucial that we maintain this momentum through the Future Homes Standard, ensuring that both solar PV and low-carbon heating become standard features in all new homes. Without continued regulatory support, the significant progress made in the sector over the past year is at risk of being undermined,” said David Cowdrey, Acting Chief Executive of the MCS Foundation.
Commercial-scale arrays above 50kW, such as on warehouses, factories and supermarkets, are excluded from the MCS figures. Although precise numbers are hard to track, the commercial-scale market is known to be similarly healthy, with around 500 megawatts of capacity built last year, according to Solar Media Analyst Josh Cornes,. A record 31-megawatt project was announced at the Port of Liverpool last year, five times larger than the current 6.5MW record holder at the Port of Hull.
