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Grid Guru May 2026 Newsletter

Solar & Heat Pump Industry Updates


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UK Solar & Heat Pump Industry Update — May 2026


From Neil Avery at Grid Guru — renewable energy compliance specialists for MCS-certified solar PV and heat pump installers across the UK.


May 2026 has been one of the busiest months for regulatory change in recent memory. The BUS amended regulations came into force on 28 April. The Future Homes Standard Approved Documents have been published. MCS 020 rules for heat pump permitted development changed on 28 May. And rooftop solar installs are up 173% on the same period last year. Here's everything you need to know.



REGULATION & POLICY



BUS Amended Regulations In Force From 28 April - Two Rule Sets Now Running


From 28 April 2026, any BUS application made on or after that date is processed under the amended regulations. Earlier applications continue under Version 4.2 of the Ofgem installer guidance. If you have live jobs straddling this date, you may be operating under two different rule sets at the same time.


The most significant practical change is the relaxation of the EPC requirement. Properties no longer need a valid EPC to apply. Where none exists, installers must provide alternative evidence — a recent utility bill and photographs of the existing heating system. Build this into your site survey checklist now.


The regulations also formalise that the grant value must be deducted from the customer's invoice upfront, not treated as a post-installation rebate.


What to do: Label every BUS job clearly with which version of the rules applies — clear record-keeping is your protection if Ofgem queries an application. Grid Guru handles BUS application preparation and compliance documentation. Find out more: https://www.gridguru.co.uk/services/government-boiler-upgrade-scheme-(bus)-grant-application-service



£2,500 Air-to-Air Grant Now Live - Oil and LPG Homes Attract £9,000


Air-to-air heat pumps now attract a £2,500 BUS grant in England and Wales — the first time this technology has been included in the scheme. The installation must replace an existing fossil fuel system, the old boiler must be fully removed, and the installer must be MCS-certified. Air-to-water and ground source heat pumps continue to attract the higher £7,500 grant.


The BUS grant for oil and LPG-heated homes has risen to £9,000, up from £7,500. For installers working in rural areas where oil heating remains common, this significantly improves the customer cost conversation.


MCS is updating MCS 007, MCS 031, MIS 3005-D and MIS 3005-I to cover air-to-air product and installation requirements. Heat battery grants of £2,500 are anticipated during 2026/27 once the relevant product and installation standards are in force.



FHS Approved Documents Published - Solar PV and Heat Pumps Legally Required in New Builds From 2027


The final Approved Documents for the Future Homes and Buildings Standards were published on 24 March 2026 (SI 2026/335). Regulations come into force on 24 March 2027, with a 12-month transitional period for developers with projects already underway.


Gas boilers cannot meet the 75–80% carbon reduction target versus the 2013 baseline, making heat pumps the effective default in new residential construction. The new Requirement L3 makes on-site renewable generation a legal functional requirement — solar PV must cover at least 40% of the dwelling's ground floor area, using panels of at least 0.22 kWp/m² oriented south-east to south-west at 45°.


The FHS Impact Assessment puts additional build cost at around £4,350 per dwelling, driven by heat pumps, solar PV, enhanced insulation and mechanical ventilation. SAP 10.3 is the mandatory compliance calculation methodology at launch, with the Home Energy Model (HEM) to follow.


For installers: New-build pipeline volumes for both heat pumps and solar PV will grow substantially ahead of 2027. DNOs are being put on notice — they'll need to prepare for significantly higher distributed generation from residential developments. Early engagement with house builders now is key. If you're starting to work with developers and need G98/G99 applications and MCS handover documentation handled at volume, get in touch: neil@gridguru.co.uk



MCS 020 Now the Only Permitted Development Standard for ASHPs 1-Metre Rule Removed


From 28 May 2026, MCS 020 is the sole permitted certification scheme for air source heat pumps installed under permitted development in England. The grace period allowing equivalent standards is now closed.


The updated standard splits into two parts: MCS 020 a) covers air source heat pumps with a revised noise calculation methodology, and MCS 020 b) covers wind turbines. Compliance with MCS 020 a) applies regardless of whether the installation itself is MCS-certified.


The 1-metre boundary rule has been removed. Heat pumps can now be sited right up to the property line, provided the outdoor unit does not exceed 1.5 m³ on a house or 0.6 m³ on a flat. Air-to-air systems are now included under permitted development for the first time, subject to the same noise standards — a significant win for terraced houses and tight plots.



MCS SCHEME UPDATE



MCS Transition Continues — Most Installers Moving Across Throughout 2026


The MCS Redeveloped Installer Scheme is in active rollout. Certification Bodies are contacting installers in phases — your CB will reach out when your transition window opens. MCS recorded 369,000 certified installations in 2025, and the new scheme is designed to support continued growth while reducing administrative burden for compliant businesses.


Key changes to understand now:


- Risk-based assessments — installers with a clean compliance record may only need a site visit every three years, not annually

- Certificate creation window extended to 30 days, up from 14 — a practical win for busy pipelines

- MCS-approved financial protection products are now mandatory per installation; Consumer Code membership (RECC, HIES etc.) becomes voluntary post-transition

- Centralised complaints management — MCS takes a more direct role, reducing the burden on installers when disputes arise


If you are doing BUS-funded work, maintain your Consumer Code membership for now — DESNZ is still reviewing this position. The MCS Customer Commitment is being assessed for approval as the alternative consumer protection route for BUS. Watch your inbox from both MCS and your Certification Body.



TECHNOLOGY & INDUSTRY



UK Rooftop Solar Is Booming — Installs Up 173% in Early 2026


The residential solar market is accelerating fast. Solar panel installs jumped 173% in the first three months of 2026 compared to the same period last year, with 2025 itself recording the best year ever for accredited rooftop installations across both domestic and commercial sites. UK installed solar capacity now stands at over 21.6 GW, up 13.6% on 2024.


New builds are a significant driver — 35% of all MCS-certified solar installations in 2025 went onto new build properties, a figure set to rise sharply once the Future Homes Standard comes into force in 2027. The South West leads the UK on percentage of homes with solar installed at 8.5%, followed by Wales at 7.2%.


The main constraint on further growth is skills and grid capacity — not consumer demand. The industry needs a sustained increase in trained MCS-certified installers. If you're already certified and looking to scale up, Grid Guru can handle the compliance and application side so you can focus on installation volume: https://www.gridguru.co.uk



Plug-In Solar Panels Legalised — Sub-800W Systems Expected on Shelves This Summer


The government has confirmed that plug-in solar panels under 800W will no longer require installation by a qualified electrician. Legal retail sales are expected to begin summer 2026, with discussions underway with retailers including Lidl and Amazon.


A £25 million government pilot programme will fund street-by-street deployment via local authorities, targeting low-income households that couldn't previously access solar. Renters and flat-dwellers represent a significant new market beginning to open up.


For MCS-certified installers the direct commercial impact on core residential work is limited — these are small, balcony-scale systems. The broader effect is likely positive: plug-in solar acts as a consumer gateway, building familiarity with self-generation and creating a natural pipeline toward full roof-mounted, MCS-certified installs.



SEG Rates Have Moved — Worth Briefing Customers Before You Commission


Smart Export Guarantee rates shifted in March 2026. Octopus Energy's Outgoing Octopus tariff dropped from 15p/kWh to 12p/kWh from 1 March 2026. Across the market, fixed rates currently range from around 3p to 16.5p/kWh, with variable and time-of-use tariffs reaching higher for customers with battery storage who can target peak export windows.


The difference between the best and worst available SEG tariff is over £200 per year for a typical 4kW system — a meaningful figure over a 25-year system lifetime. Customers do not need to use the same supplier for import and export, giving them full flexibility to choose the highest-paying SEG tariff independently.


MCS certification is the gateway to SEG — suppliers will not pay export income without an MCS installation certificate. It's worth reminding customers of this at handover and signposting them to compare current rates at Ofgem's SEG register. If your handover documentation isn't watertight, your customer can't register for SEG. See how Grid Guru handles MCS handover packs: https://www.gridguru.co.uk/services/mcs-compliant-solar-pv-handover-packs



QUESTION FROM AN INSTALLER THIS MONTH


"We've started getting more jobs with battery storage added to existing solar installs. Do we need a new G98 for the battery, or does the original notification cover it?"


Good question — and one that trips up a lot of installers. The original G98 covers the solar PV generation only. Adding battery storage changes the export behaviour of the installation and in most cases requires a new or updated notification.


If the combined system capacity remains under the G98 threshold and the battery is AC-coupled with no change to the generation system, a new G98 notification is typically required for the storage device. If the combined export pushes above the G99 threshold — which adding a hybrid inverter or larger battery often does — you'll need a full G99 application.


Not sure which applies to your job? Send us the details and we'll tell you exactly what's needed — no charge for the advice: neil@gridguru.co.uk



HOW GRID GURU CAN HELP


Six services, one point of contact. Trusted by MCS-certified installers across the UK — same-day G98 turnaround, G99 applications within 3–5 working days.


G98 DNO Notifications — Solar PV G98 notifications, all networks


G99 DNO Applications — Full G99 applications and DNO approvals


Solar PV Design — String sizing, shading analysis, technical specifications


Heat Pump Design — MCS-compliant ASHP design including MCS 021 documentation


MCS Handover Packs — Compliant solar PV and heat pump handover documentation


BUS Applications — Full BUS grant application and compliance support


Consultancy — Regulatory guidance, compliance queries and project support



SOURCES & FURTHER READING



BUS Amended Regulations & Grant Expansions



Future Homes Standard



Permitted Development & MCS 020



MCS Redeveloped Installer Scheme



Rooftop Solar Boom & Market Data



Plug-In Solar & SEG Rates



All sources are publicly available UK government, MCS, Energy Networks Association and industry publications. Always verify with the relevant body before acting on regulatory changes.



How Grid Guru Can Help


We provide a complete compliance and design service for installers:


Contact Grid Guru today and we’ll walk you through it.


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