Attributed to Mohamed Gaafar, CEO and Co-Founder of GRYD Energy

The clean energy transition has been steadily building momentum for years now, but this year solar’s ‘rooftop revolution’ is set to make particularly big political and economic waves. So, how will the construction industry rise to the occasion in 2025 and take advantage of the opportunity that the solar movement presents?

After years of debate and indecision, in 2025 the government will finally implement the Future Homes Standard, which will require new homes in England to produce 75–80% fewer carbon emissions. Details of the new regulations are yet to be confirmed, however the government has indicated they could mandate that low-carbon technologies such as solar panels and heat pumps are incorporated into all new homes.

Coupled with the new Warm Homes Plan, also due to be implemented in 2025, the construction industry is on the frontline of significant changes to prepare Britain’s housing stock for a zero-carbon future.

Many in the industry once regarded the Part L building requirements – Future Homes Standard’s predecessor – as just one more financial pressure and an inconvenient check box exercise; and did as much as they could to avoid it before it came into force.

In 2025, construction leaders must focus on understanding the investment required to move in lockstep with the green energy transition and not be left behind.

The Future Homes Standard will certainly bring challenges for builders – as new regulatory measures do for any sector. But the requirements outlined aren’t as intimidating or capital-intensive as they might first seem – innovative solutions are out there.

At GRYD Energy, we work with developers and housebuilders to deploy smart solar and battery systems onto homes at zero hardware cost to them, ensuring their housing developments are built for a net zero future – and won’t have to be retrofitted with the right technology in a matter of years.

Beyond the anticipated regulatory changes, shifting consumer trends will also impact construction. Homeowners don’t just want to live more sustainably – they’ve seen the demonstrable benefits of renewables and how this technology can shield them from energy price fluctuations and volatility in the wholesale market.

We’re seeing a notable uptick in demand for ‘behind the meter’ home renewables, such as solar panels and battery storage systems, that allow homeowners to generate and store energy on their own premises. These are increasingly intelligent systems that are optimised to work in tandem with other home clean energy devices like air source heat pumps and electric vehicles. Developers are taking notice of the trend and housebuilders must themselves be ready to respond to the demand, which is only set to accelerate in 2025.

While construction leaders adapt to these regulatory and commercial shifts, the valuation industry will grapple with how to update models to reflect the added value that onsite renewable systems such as solar deliver.

Some research shows that the benefits of a solar installation can increase the value of a UK home by up to 6.8%. However, the benefits of solar and other renewables are spread over a long period of time. In many cases, multiple homebuyers will benefit from the same clean energy systems as a property is bought and sold over the decades-long life cycle of that technology.

Updating valuation methods to accurately assess solar and other clean energy technologies is therefore a complex challenge. In the effort to embrace the renewables transition, we must avoid creating inflationary valuation models that needlessly push up housing prices and corner renewables as a ‘premium’ home feature. Given that much of the value derived from renewable technology is in energy bill savings, how this ‘premium’ is amortised for multiple homeowners must ensure those savings are not eroded if we are to democratise the benefits of solar for all Brits.

2025 will pose challenges for construction but also a host of economic opportunities. Innovators in the space are developing cutting-edge solutions that can enable everyone – from housebuilder to homeowner – to benefit from more renewables deployment and pave the way for Britain’s zero-carbon future. Let’s do it once and do it right.

Learn more about GRYD Energy at https://gryd.energy/.