Housebuilders Successfully Lobby to Remove Battery Storage from New Homes Environmental Standards

UK housebuilders have successfully persuaded the government to dilute proposed environmental requirements for new residential properties in England, according to recent reports. The revised version of the Future Homes Standard, scheduled for publication later this month, is not expected to mandate battery storage systems despite declining costs and potential household energy savings.

The updated regulations are anticipated to include requirements for solar panels and enhanced insulation standards. However, the absence of battery storage provisions represents a significant reduction in the scope of the environmental measures originally under consideration.

Battery storage systems enable homeowners to store excess energy generated by solar panels for later use rather than exporting it to the grid immediately. This capability provides dual benefits: reduced energy bills for households and enhanced stability for the broader electricity grid. Storage systems help to smooth demand fluctuations, reduce peak-time consumption and deliver additional grid stability advantages.

The building industry has opposed mandatory battery installation requirements, citing the upfront costs that developers would face. Household battery systems for energy storage typically range from £3,000 to over £10,000 including installation costs, with specific pricing dependent on brand selection and storage capacity. The Tesla Powerwall 3, for example, costs approximately £8,000 when fully installed.

Rhodri Williams, technical director at the Home Builders Federation, indicated that housebuilders support the zero-carbon agenda whilst favouring less expensive alternatives to battery systems for managing surplus solar energy. These alternatives, however, do not deliver the same range of benefits as battery storage solutions.

Environmental commentators have characterised the omission of battery requirements as a missed opportunity to enhance energy efficiency and reduce dependence on imported natural gas. Research indicates that a typical residence equipped with solar panels, a heat pump and battery storage could achieve annual energy bill savings of up to £1,350.

The decision to exclude battery storage from the Future Homes Standard raises questions about the government’s commitment to maximising the environmental and economic benefits of new housing stock. Whilst solar panels and improved insulation represent progress, the absence of storage capability limits the effectiveness of renewable energy generation at the household level.

The debate highlights the ongoing tension between construction costs and long-term sustainability objectives in the residential property sector. As battery technology continues to advance and costs decline further, the decision not to include storage requirements may prove shortsighted from both environmental and energy security perspectives.