Friday 17th January 2025
(3 days, 17 hours ago)
Commons ChamberNew Homes (Solar Generation) Bill 2024-26 Read Hansard Text Watch Debate
This text is a record of ministerial contributions to a debate held as part of the New Homes (Solar Generation) Bill 2024-26 passage through Parliament.
In 1993, the House of Lords Pepper vs. Hart decision provided that statements made by Government Ministers may be taken as illustrative of legislative intent as to the interpretation of law.
This extract highlights statements made by Government Ministers along with contextual remarks by other members. The full debate can be read here
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The Minister for Housing and Planning (Matthew Pennycook)
Let me start by sincerely thanking the hon. Member for Cheltenham (Max Wilkinson) for introducing the Bill, for the constructive spirit in which he has engaged with me on it, and for his laudable efforts outside the Chamber—including his efforts as a local councillor, before coming to this place—to promote the further growth of solar power. I know it is a cause that he cares about, and his passion and commitment were evident in his opening remarks. I also thank all the other Members who have spoken this morning for their thoughtful and well-informed contributions. It has been a wide-ranging debate and the quality has been high—although the same cannot be said, I am afraid, for many of the puns that have been made throughout.
The Government are extremely sympathetic to the intention behind the Bill, namely to significantly boost the deployment of rooftop solar. That aim is clearly shared widely across the House, and for good reason. Self-generation and consumption through solar PV panels not only decreases emissions and delivers bill savings for householders, but provides security from fluctuations in wholesale electricity prices. As solar technology becomes more efficient and affordable, installing panels during construction is increasingly more cost-effective than retrofitting, a point that many Members touched on. The Government are, therefore, in complete agreement with the hon. Gentleman that solar energy has an integral role to play in improving the energy efficiency and reducing the carbon emissions of new homes.
However, we cannot support the Bill today. That is because the Government already intend to amend building regulations later this year as part of the introduction of future standards that will set more ambitious energy efficiency and carbon emissions requirements for new homes. The new standards will ensure that all new homes are future-proof, with low-carbon heating and very high-quality building fabric. Not only will they help us to deliver our commitment to reach net-zero emissions by 2050, but they will reduce bills, tackle fuel poverty, grow skills, foster diverse job markets and make Britain energy secure.
Let me make this absolutely clear to the House and to those watching our proceedings: solar energy will have an extremely important role to play in these standards. The Government’s reservations about the Bill are not related to its objective; rather, they stem from recognition that the regulatory landscape being dealt with is incredibly complex and that we must take great care to get the technical detail right. My officials and I are working to develop the technical detail of the solar standards we intend to implement, with a view to ensuring that they are both ambitious and achievable. Our concern is that passing primary legislation that does not strike that balance correctly could have adverse effects, including on housing supply, the construction industry and local authorities.
Although the Bill is not inherently flawed, we are not convinced that it is the most appropriate means of proceeding, for reasons I shall set out shortly. None the less, the hon. Member for Cheltenham has done the House a great service by providing hon. Members with a valuable opportunity to debate this important issue. In the time available to me, I will try to give the House a sense of some of the practical challenges we have been wrestling with as we develop and refine our emerging proposals, and how they speak to potential weaknesses in the Bill.
As hon. Members will be aware, in December 2023 the previous Government published the future homes and buildings standards consultation, setting out proposals on what new standards should entail. The consultation closed in March last year. Over 2,000 responses were received, and some of the most detailed feedback the Department received related to the options set out in respect of solar. The hon. Gentleman has, I know, amassed a not inconsiderable amount of technical expertise when it comes to rooftop solar systems, and he has consulted with industry stakeholders, so he will be acutely aware that setting environmental standards for new homes is not something that Government can do in isolation. To succeed, we must take industry with us, and crucially, we must also ensure that the standards we set are achievable on all sites across the country.
While it is certainly not dictatorial, the expert feedback to the consultation as well as our ongoing work with the industry-led future homes hub, where we have been considering matters such as design flexibility, has been invaluable in shaping the Government’s thinking on what future standards should look like and how they should be implemented. The feedback to the consultation we received drew attention in particular to a number of practical considerations, which we believe it is essential to take into account when determining the precise role of solar in the new standards. I shall touch briefly on three, to illustrate the sort of practical issue my officials and I have been weighing up as we develop the forthcoming new standards, and in so doing give the House a sense of why we feel the Bill may not be the right way to achieve the objective we all share.
The first consideration relates to the ground floor area requirement. As hon. Members know, the future homes and buildings standards consultation set out two options for new homes; both included very high-quality building fabric and a heat pump. The first option also included several additional elements, notably solar panels equating to 40% of the ground-floor area. While respondents were very supportive of the inclusion of solar panels, widespread concerns were raised about the proposed level of solar coverage, which many argued would be virtually impossible to achieve on certain types of home—for example, those with dormer windows.
Clause 1(2) of the Bill sets out a requirement for the same level of solar coverage as was proposed in the consultation. Having thoroughly explored the evidence submitted during the consultation process, the Government have concluded that this level of ground-floor area coverage, rather than just being challenging for a small proportion of new supply, is simply not feasible for many new homes. Importantly, our concern is that setting a requirement at this level in law would result in a significant number of homes needing to apply for an exemption to the standards, which in turn could cause unmanageable workloads in local authorities, lead to significant bottlenecks in housing supply, and ultimately reduce the speed at which rooftop solar on new homes is rolled out.
Determining exemptions is by no means a trivial task. Solar panel systems must be designed carefully for each individual house, taking into account features such as roof shape and pitch, roof lights and dormers. As such, determining the number of solar panels a roof can reasonably accept is a technical design exercise for which many local planning authorities are simply not resourced to carry out in large numbers. Furthermore, any regulation would need to have an enforcement mechanism to deal with instances where unscrupulous developers simply did not comply. The Bill does not address that point, and again, we fear it could end up being another burden that will fall on overstretched local planning authorities. Alive as we are to these unintended consequences, the Government are determined to take an approach that is both ambitious and technically feasible so that widespread exemptions are not necessary.
The second issue relates to the timeframe for introducing the changes. Clause 1(1) stipulates that solar PV will be mandatory on new build homes from 1 October 2026. While that may seem some way into the future, the design and specification of new housing developments is typically set some considerable time prior to construction. As a result, the Bill’s proposed commencement date could risk a significant increase in costs and delays to housing delivery, as developers are forced to rapidly redesign, including sites already in train.
It is important to bear in mind that those in the industry cannot properly prepare for the new requirement until they have access to the final regulations and accompanying statutory guidance. Preparing the regulations and said guidance is not an insignificant task. They need to be drafted and consulted upon, with the consultation open for at least 12 weeks to align with standard protocol and to permit industry sufficient time to respond to such significant proposals.
Following the consultation, the regulations and guidance will need to be finalised and passed using the affirmative resolution process. It is therefore unlikely that the full detail will be available to the construction sector until the end of this year at the earliest, giving the sector only a few months to redesign and get supply chains prepared. These issues are particularly pertinent for small and medium-sized enterprises, which are less equipped to respond quickly. By potentially compressing this period to meet the proposed deadline, housing sites that are already under way may become unviable, leading to wasted investment, a negative impact on housing supply and disruption to numerous local communities across the country—outcomes that I am sure Members will agree we must try to avoid.
The third and final issue relates to transitional arrangements. Government typically minimise the disruption associated with the introduction of new building regulations by setting out associated transitional arrangements. These arrangements determine the limited conditions under which a building can be built to the previous standards. That gives industry time to adapt to new standards and allows work that is already under way to be completed without major disruption. When the 2021 standards were introduced, a six-month period was allowed between laying the regulations and the standards coming into force, followed by a 12-month transitional period. That meant the regulations were laid on 15 December 2021, with the transitional period ending on 15 June 2023.
This Bill does make provision for the Secretary of State to put in place transitional arrangements. However, our reading of the Bill is that those arrangements cannot contradict or override its main premise that new homes built from 1 October 2026 must be fitted with solar panels. As a result, we are concerned that there may not be sufficient time for appropriate transitional arrangements to be set. We believe it is vital that they are set, given that the construction sector typically plans ahead by at least two, if not three or even more, years. Providing merely a matter of weeks between publishing such significant legislation and its taking effect would not be realistic or fair, in our view.
Ellie Chowns (North Herefordshire) (Green)
I have been listening carefully to what the Minister has said. Does he agree that a vote on Second Reading is a vote on the principle of the Bill, and the objections that he has been raising are micro, technical ones? Does he not agree that the urgency of the climate crisis and the immense benefits associated with solar PV mean that he should stop raining on the parade of this Bill and give us the opportunity to vote on photons?
Matthew Pennycook
The hon. Lady makes a fair challenge, but the Government do not intend to proceed on the basis of primary legislation. She might find that the primary legislation route is ultimately slower than the way in which we intend to introduce the future standards later this year. Speed is absolutely an issue we are grappling with, but I gently challenge the idea that this private Member’s Bill is the fastest way to proceed, even leaving aside the points I have raised, which I do not consider to be minor or technical.
In contrast, the future homes standards consultation sets out two options for transitional arrangements, which we believe are far more robust. The first option involves a six-month period between the laying date of the regulations and the regulations coming into force. The second option involves a period of up to 12 months. That approach to transition will ensure that as many homes as possible are required to meet the new standards in a way that is structured and achievable.
It is our responsibility to ensure that the standards we set for new homes are ambitious, but also technically feasible and deliverable, as I have said. For the reasons I have set out, and others that I have not covered today, we believe that forthcoming future standards, developed as a clear and coherent response to the 2023 consultation, are a more appropriate and arguably faster means of achieving the Bill’s aims, which we fully share with the hon. Member for Cheltenham.
Nesil Caliskan
Reflecting on the point made by the hon. Member for Broxbourne (Lewis Cocking) about industry using excuses to push back on delivering homes, can the Minister give assurances that in their efforts the Government will push ahead with renewable energy, particularly solar, and do everything they can to ensure that industry and housing companies do not use viability as an excuse not to deliver the many new homes that we need?
Matthew Pennycook
My hon. Friend makes a good point. I am afraid that the time to go into it is not available to me, but I would mention the Government’s intention to revise viability guidance this year to strengthen the section 106 developer contributions system rather than implementing the infrastructure levy that the previous Government devised. In lots of different respects, this Government are absolutely ensuring that developers are held to the commitments they make, and, as she will know, we gave significant weight to the benefits of renewable and low-carbon energy proposals more generally in the NPPF.
As I was saying, maintaining consistency with the established direction of travel is vital. There is a history of environmental standards being committed to and then withdrawn by previous Governments, which has understandably left industry reluctant to invest in preparing for new standards. However, since its announcement in 2019, the future homes standard has become a world-recognised framework, giving industry time to develop the necessary supply chains, skills and construction practices, and many developers are already building to higher standards in anticipation of its roll-out. Introducing conflicting legislation at this stage could create significant confusion and risks reversing the confidence and momentum that we have worked hard to establish.
Let me reassure the House that it is our firm intention to legislate for future standards later this year, as I have made clear, and to increase rooftop solar deployment significantly as a result. I understand that hon. Members and industry will need more details about what the standards will entail before they can arrive at a judgment as to their efficacy. Although we need to take the necessary time to get that right, my intention is to set out further details as soon as I am able—in the not-too-distant future, I hope.
Ruth Cadbury
I understand that 1.5 million Germans live in flats that have solar panels on their balconies. Will the Minister consider that as an option, in both new and retrofitted housing, as he looks at this important work?
Matthew Pennycook
As I said, we will set out further details on the new standards in the not-too-distant future.
I reiterate my thanks to the hon. Member for Cheltenham for introducing this commendable Bill. Although the Government cannot support it for the reasons that I have given, we very much agree with the sentiment and ambition that have motivated it, and I recognise and appreciate all the dedicated work that I know he has put into it. For that reason, and assuming that he is willing, I would very much welcome an ongoing dialogue with him as the Government progress our work on the new standards, so that he has an opportunity to build on the important contribution that he has made in introducing this legislation, and to work closely with me and my officials prior to the introduction of our legislation so that his work and the views he has developed are properly incorporated and taken into account. On that basis, and given the widespread consensus on the objectives of the Bill, I hope that he will not seek to divide the House on its Second Reading.