The National Federation of Builders (NFB) has warned that the Government’s plan to mandate solar panels on new-build homes under the Future Homes Standard could stall housing delivery unless urgent reforms to the UK’s electricity grid are prioritised.

Announced as part of updated building regulations, the new policy will require solar panels on most new homes — a move intended to support net-zero goals and lower household energy bills. However, the NFB says that without cost caps, reliable grid connections, and infrastructure guarantees, the policy could backfire.

NFB: Grid Costs and Delays Threaten Viability

While the NFB supports the ambition to increase rooftop solar, it says the biggest obstacles remain unresolved. Chief Executive Richard Beresford noted:

“The main barriers to mandating solar panels on all new buildings are grid costs and grid delays. Although not yet fully resolved, the Government has made real progress — particularly through planning reforms and connection changes — but more must be done.”

The Government says the typical UK household could save around £530 a year in energy bills through the rollout, and the Future Homes Standard will allow exemptions in cases of severe shading. But the NFB argues this flexibility does not go far enough in protecting smaller housebuilders.

Policy Risks Widening the Construction Skills and Delivery Gap

Rico Wojtulewicz, Head of Policy and Market Insight at the NFB and House Builders Association (HBA), warned that grid uncertainty and cost burdens could halt construction on thousands of homes:

“No housebuilder should face indefinite connection delays, be forced to pay twice for temporary and permanent grid access, or fund infrastructure that private energy firms profit from.”

He called for a solar installation cost cap similar to the one applied to electric vehicle charging, along with guarantees that the energy sector will cover excess grid costs or delays — particularly on constrained sites.

“Another tax on housebuilders is also a tax and burden on the entire construction industry, because contractors are paid by clients, who with shrinking levels of funding, pay less, pay late or scrap projects entirely,” Wojtulewicz added.

Impacts on Housing Delivery and Industry Stability

The NFB has repeatedly warned that grid and planning issues, combined with rising build costs and slower project approvals, are pushing the UK’s housing delivery targets further out of reach. The Federation says that unless the solar requirement is introduced alongside support measures, it risks deepening the housing and skills crises.

“Labour is trying to fix the mess the Conservatives left them,” Wojtulewicz said, “but without fair caveats to this policy, it will only weaken the broader construction industry and make the 1.5 million homes target even harder to hit.”

Read more from the NFB here: https://www.buildnews.co.uk/nfb-delegation-visits-finland-to-examine-ai-and-takt-based-construction-methods/