Power for new homes is a major problem – does the solution lie off-grid?

This isn’t just about demand for electricity. According to Ofgem, the backlog of renewable energy projects in the grid queue totals 701 gigawatts, more than double the UK’s current electricity demand. 

While the government is taking steps to address this through new measures in the Planning and Infrastructure Bill, this bottleneck of existing projects has the potential to disrupt Labour’s housing targets, making timely grid connections just as critical as land and planning permissions.  

Forward-thinking investors and developers are increasingly looking to decentralised energy solutions as a way to create more resilient developments. 

Rather than relying solely on grid connections, new towns and large-scale housing projects should plan holistic energy strategies from the outset – incorporating solutions such as microgrids, on-site battery storage, and local renewable generation to complement grid supply and enhance resilience. By adopting decentralised energy solutions, developers can reduce their dependence on the central grid and avoid getting caught in that constraint. 

One example already in progress is Otterpool Park, a new garden town centred around the historic Westenhanger Castle near Hythe in Kent, which exemplifies how decentralised energy systems play a crucial role in enabling developments to thrive. 

The town, which will include at least 8,500 homes, is powered by a combination of a solar farm and rooftop solar panels, connected to a smart grid with battery storage, aiming for sustainable power and reduced energy tariffs for residents.

By embedding decentralised systems into the design of new developments, we can create housing that is not only more self-sufficient but also energy-resilient. This approach also aligns with the UK’s net zero ambitions, reducing reliance on fossil fuel-based grid power.  

Decentralised energy isn’t just a way to secure power, it’s also a game-changer for accelerating housing delivery and unlocking investment potential. The rise of ‘energy as a service’ model means developers no longer need to bear the full upfront cost of renewable energy infrastructure. 

Instead, private investors and energy firms are stepping in to fund and operate decentralised energy networks, providing long-term, stable returns through a service-based revenue model. 

This shift presents a win-win scenario: house builders can deliver projects faster without waiting for grid upgrades, while investors gain exposure to a growing market with predictable revenue streams. Moreover, residents benefit from lower energy costs and increased energy security.  

“Decentralised energy isn’t just a way to secure power, it’s also a game-changer for accelerating housing delivery”

The Future Homes Standard, set to take effect this year, already requires new homes to be ‘zero-carbon ready’, encouraging the adoption of decentralised energy solutions such as heat pumps and solar panels. The Planning and Infrastructure Bill, combined with this policy shift, presents a real opportunity to rethink how housing and energy are delivered together. 

Deputy prime minister and housing secretary Angela Rayner’s Planning and Infrastructure Bill is a crucial step in accelerating housing delivery and bringing forward vital affordable housing, but it is vital to tackle the parallel challenge of energy capacity. In doing so, we can help tackle the acute shortage of genuinely affordable homes across the country  

Decentralised energy and microgrids offer a practical, scalable solution to this problem – one that can unlock housing growth while aligning with the UK’s net zero ambitions. Unless housing, infrastructure and energy policy are aligned, thousands of planned homes risk becoming unviable before they’re even built.

Aligning housing, infrastructure and energy policy will be key to avoiding future delivery challenges for planned developments. 

Ben Bowler, technical director, Stantec