The Labour government is poised to publish its long-awaited Future Homes Standard (FHS) in early 2026, but ministers are expected to remove a key green technology mandate for new homes in England. In a significant concession to housebuilders, the regulations are unlikely to require the installation of home battery storage systems.
A Climbdown on Carbon-Cutting Tech
Exclusive reporting reveals that while the standard will still enforce robust measures like solar panels on nearly all new houses and high insulation standards, the omission of batteries represents a notable policy retreat. The FHS, which will govern the construction of all new homes from 2027, was anticipated to be a cornerstone of the UK's net-zero housing strategy.
Jess Ralston, head of energy at the Energy and Climate Intelligence Unit, criticised the decision. "Batteries are really useful for ensuring that homes can use as much of their own power as possible – and that lowers bills," she stated. "New-builds being built from 2027 without the latest cost-saving net zero tech may mean we’re not making the most of our own power, increasing bills and meaning we need more gas from abroad."
The Cost of a Missed Opportunity
Despite a dramatic fall in price, the upfront cost of batteries—estimated at £2,000 to £5,000 per new home—has been a sticking point for developers. However, research by the MCS Foundation charity indicates substantial long-term savings for homeowners. Their analysis found that a typical three-bedroom semi-detached home equipped with a heat pump, solar panels, and a battery could save around £1,350 a year on energy bills.
Professor Jan Rosenow of Oxford’s Environmental Change Institute called the move a "missed opportunity," noting that "installing a battery at the point of construction is cheaper and less disruptive than retrofitting later." He pointed to a pattern of housebuilder resistance to enhanced energy performance standards.
Grid Implications and Industry Pushback
The decision also carries consequences for the national electricity grid. Building the 1.5 million new homes pledged by Labour without integrated battery storage forfeits a chance to create a large, distributed reserve of power. This could have helped balance supply and demand, a function becoming increasingly vital as the UK relies more on intermittent solar and wind power.
The Home Builders Federation has lobbied against the mandate. Its technical director, Rhodri Williams, argued builders prefer alternatives like 'switch valves' or using excess solar to heat water. He emphasised that new-build homes already emit a third of the carbon of older properties on average.
Garry Felgate, chief executive of the MCS Foundation, acknowledged the FHS "could be a gamechanger" even without batteries, potentially generating as much power as two nuclear stations. He urged the government to accompany the standard with clearer plans to phase out fossil fuel boilers and decommission the gas grid.
The Department for Housing, Communities and Local Government confirmed the standard is in development for publication early next year, stating it will ensure new homes are "warmer and more affordable" and help meet the UK's 2050 net zero target.
