Buyers of newbuilds will see bills “slashed” as new rules make heat pumps and solar panels standard – but the regulations will not be fully in force for two years.
For some buyers of new homes, though, “zero bills” are already an option as Octopus Energy teams up with developers to deliver houses with heat pumps, solar panels and batteries where residents are guaranteed to pay nothing for at least five years.
Under the new “future homes standard” confirmed on Tuesday, new homes will have to have clean heating – either heat pumps or plugging into a wider heat network – alongside requirements for insulation and energy efficiency.
And they will need to have renewable electricity generation onsite, with some exceptions, with the majority of those installations expected to be solar photovoltaic panels.
The Government said the new standards would save homeowners £830 a year on bills compared to a standard energy performance certificate (EPC) C dwelling.
The new rules come a decade after previous regulations that aimed to slash the carbon emissions and energy use of homes were scrapped, and will not be fully implemented until 2028.
Garry Felgate, chief executive of the MCS Foundation, which certifies for renewables in homes, said the move was “very good news” for energy security and “countless” households that will benefit as a result, with the organisation’s research suggesting a saving of more than £1,000 for a typical family.
It will also mean a major uplift in clean technologies, in particular heat pumps.
While Government figures show around 142,000 new homes were built to completion in 2025, MCS figures show only around 4,500 newbuilds had accredited heat pumps installed – though others may have had non-accredited tech put in – and nearly 98,000 accredited solar arrays were installed.
The new rules have also been welcomed by environmental and anti-fuel poverty campaigners, who warn the Iran War shows the need to shift away from reliance on expensive, volatile and imported fossil fuels.
Ed Matthew, UK director of climate think tank E3G, said: “It is a critical step in helping the British people to take back control of their energy from fossil fuel dictators.
“But the Government should have introduced these reforms faster.”
Simon Francis, coordinator of the End Fuel Poverty Coalition, said that the measures should have happened “years ago”.
“For the households who benefit, it will mean warmer homes and permanently lower bills, while reducing our exposure to volatile oil and gas markets,” he said, but added it needed to be matched by a nationwide programme to upgrade existing cold, damp homes to protect families from rising bills.
Octopus Energy’s zero bills director Nigel Banks said the future homes standard was a “huge step towards greener, cheaper living” and less reliance on fossil fuels.
“Heat pumps and solar panels slash bills, so it makes sense to build them into new homes from day one. And with a battery added to the mix some homes could even pay nothing at all for their home energy,” he said.
The energy company’s “zero bills” initiative sees primarily new homes installed with heat pumps, solar panels and batteries to store excess power and export it to the grid, so homeowners can be given a guarantee of paying nothing on bills for at least five or 10 years.
At a new housing estate of 89 private and affordable homes in the village of Newport, Essex, Octopus Energy has teamed up with developers Hill Group for their zero bills offer.
Roofs glint with integrated solar panels, heat pumps are placed discreetly around the side of houses or behind garages, and the inside elements of the heating system and batteries are tucked in landing and hallway cupboards with room spare to hang coats.
Alan Paske, sales executive for the Hill Group told the Press Association he tells prospective buyers: “You’re generating power, you use what you generate, what you don’t use charges the battery, when it’s full it goes into the grid, you get nothing for it.
“But in the winter months, you’re using more than you generate and you pull from the grid and you pay nothing for it.”
Andrew Day, sustainability director at the Hill Group, told the Press Association the company pivoted towards air source heat pumps in 2021, and last financial year to March 2025, had installed heat pumps in 53% of its newbuilds.
The zero bills offer had allowed the company to innovate and trial technologies ahead of the future homes standard, which is lower than the level at the Hollymead Square development as it does not include batteries, he said.
He said: “What’s happening with Iran at the moment lends itself even more to future-proof our customers’ homes.
“Pivoting away from fossil fuel sources and using renewable sources, whether it be the sun, below ground heat pumps or wind at a macro scale, securing our energy future on these shores is incredibly important and we want to play a part in that,” he said.
Hannah McCarthy, head of partnerships for new homes at Octopus, added: “The zero bills aspect guarantees that customer is protected against price rises, which has never been more important.”
She added that some people were nervous of new technology of heat pumps and batteries, but the “beauty” of zero bills was the company took care of the battery flexibility to ensure the zero cost to the customer.