What we know about plans to install solar panels on all new homes

Solar panels will be installed on practically all new homes in England by 2027 under plans to be announced by the government, it has been reported.

The move will help the government deliver on ambitious plans to switch the UK entirely to clean energy by 2030 – and could cut bills for households.

Housebuilders will be required to install new solar panels on most homes by 2027, The Times reported.

The plans will see 80% of new homes have panels equal to 40% of the building’s ground area, while 19% will have a smaller area, and 1% of homes will have no solar panels.

An official told the paper: “We believe this proposal has the benefits of ensuring that the majority of new homes will be built with solar panels but that there is flexibility for legitimate cases when reduced or no solar panel coverage is appropriate.”

Roughly 1.5 million homes have solar panels installed today, and Labour is targeting a further 1.5 million by the end of this decade, with the move forming a key part of net zero plans and the government’s plan to cut energy bills.

By 2030, the government aims for 100% of British electricity to come from ‘clean’ sources, and solar will be a vital part of this.

How much does it cost to install solar panels?

Adding solar panels to every new home would add about £3,000 to the cost of a semi-detached or terraced house and £4,000 to the cost of a detached property, the government report suggests.

The key to cutting costs is to add solar panels at the design phase of new builds.

Nick Spicer, co-founder and CEO at renewable energy installation company Your Eco, says that installation costs range between £800 and £1,200 per kilowatt (roughly two solar panels), with retrofits tending to be more expensive.

“Installing them during construction is far more efficient and cost-effective than retrofitting later, with scaffolding and wiring already in place,” he says.

“Innovations like building-integrated photovoltaics can even offset roofing costs, while solar energy offers a clear route to cutting carbon emissions and lowering energy bills over time.”

Dr Renuka Thakore, director for the Centre for Socio-Legal Studies and Lead for Sustainable Development strand at the University of Central Lancashire told Yahoo News that when homeowners come to sell a property, having solar panels will increase their value.

How much money can it save people?

The government estimates that installing solar panels could save households up to £440 a year on energy bills. If homeowners have surplus energy, they can sell it back to the grid.

Panels typically pay for themselves within four to eight years, and then yield return on investment of 15-30% thereafter, Spicer says.

Savings on the current cost of electricity are typically 20-25p per kilowatt-hour, and selling electricity to the grid typically yields 5-10p per kilowatt-hour.

Dr Thakore says that current tariffs mean that this is not always a significant source of income.

She told Yahoo News: “Solar panels have a range of benefits. By using a sustainable energy source, they can slash energy bills for households, whilst also contributing to the UK’s net-zero targets. This could have significant ripple effects in sustainable practices when spread around the country.

“For individual households, solar panels provide greater energy independence and resilience against rising energy prices. In the current economic landscape, this can be a huge and underestimated benefit. And when owners look to sell, solar panels also increase the value of a property.

How do you install them?

Generally speaking, homeowners do not need planning permission to install solar panels on their roof (unless doing so is part of other works such as an extension).

Solar panels come under “permitted development” generally speaking, but it’s worth speaking to local authorities if you’re in a listed building or conservation area, or if you are installing ground-based solar panels.

Accredited solar installers will be aware of regulations and will be able to offer advice.

Dr Thakore says that new panels are much easier to install, and the technology is “almost a DIY job”.

Are there any grants?

There are several grants and incentives homeowners can use to cover some or all of the cost of solar panels in the UK.

These vary by region, with some targeted at lower income households, and some taking the form of loans.

Solar installers will be able to offer area-specific information on what grants are available.

For instance, the Energy Company Obligation 4 and LA Flex are typically available to low-income households, along with the Warm Homes Nest Scheme and the Home Upgrade Scheme.

The Solar Together is a group buying scheme which is increasingly popular and can save up to 35% of the cost of solar panels, according to the Federation of Master Builders (FMB).

The FMB – a trade body for the construction industry in the UK – also offers a detailed guide to solar grants.