The House Builders Association (HBA) has warned that mandating solar panels on new homes without reforming grid funding risks driving small and medium-sized builders out of the industry.
Although the Government has not confirmed a legal requirement, media reports suggest all new builds from 2027 may need solar coverage equal to 40% of ground area.
A Downing Street spokesperson recently said, “Of course, we want to see solar panels on as many new homes as possible.”
However, the HBA insists the energy sector should fund off-site grid connections and reinforcement, while developers pay for the panels.
Without this split, SME builders will face unpredictable delays, rising infrastructure costs and unviable projects.
“Would you buy a home with a temporary connection to the grid? Would you spend £150,000 to go through the planning process, then not be able to sell a home because you can’t get a grid connection?” the HBA asks.
Grid upgrade delays already stall electrified housing projects, with some connections deferred by up to 11 years.
Transformer prices have surged 60–80%, making temporary connections costly and unreliable.
The HBA highlighted one member’s 70-home project delayed since 2019 due to a required substation.
In 2023, a partial, temporary connection was arranged at significant expense, with no clarity on when full upgrades will be delivered.
If grid costs remain with developers, the HBA warns solar mandates will render starter homes unviable, delay house sales and force more SMEs out of business.
“The only fair approach is for the energy sector to pay for connections and infrastructure and the developers to pay for panels. Do that, and every new build roof could be one giant solar panel.”
