There’s a smarter way to reduce social housing’s carbon footprint, writes Levelise’s Stephen Day
As the UK accelerates its drive toward net zero carbon emissions, one sector stands out as a critical opportunity and a major challenge: social housing.
Social housing represents one of the largest and most inefficient of the UK building stock. Much of it consists of older homes with outdated heating systems and low energy efficiency ratings, placing residents at higher risk of fuel poverty.
These homes are not only harder to heat and decarbonise, but their tenants are also disproportionately affected by rising energy bills.
Recognising this, the government has pledged a further £1.8bn to local authorities and social housing providers for home energy-saving upgrades from 2025, aiming to support up to 170,000 homes. Additionally, schemes like the Social Housing Decarbonisation Fund (SHDF) focus on reducing bills and carbon emissions for low-income households.
Among the most effective of these technologies is solar PV, which offers a clean, scalable way to reduce reliance on fossil fuels while generating long-term savings for residents. The government’s upcoming Future Homes Standard further reinforces this direction.
Aimed at ensuring all new homes are zero-carbon ready, it promotes the use of on-site renewable energy like solar power as a core strategy to eliminate carbon emissions from heating and power – helping to future-proof both new builds and retrofit projects across the social housing sector.
Why solar is only part of the answer
Among the most promising technologies in this space is solar PV. It’s widely available, well-understood, and increasingly affordable. Deployed effectively, solar can help reduce grid demand, lower household bills, and accelerate carbon reductions. But solar on its own isn’t enough.
Without complementary technologies like battery storage and smart energy management, much of the electricity generated by solar panels is exported when demand – and therefore value – is low. This is a missed opportunity, particularly in homes where every unit of saved or monetised energy can make a tangible difference to the resident.
Unlocking the value of smarter systems
Innovative solutions, such as Levelise, show that by integrating solar with intelligent battery storage, homes can store and release electricity in response to real-time grid signals. This turns passive consumers into active participants in the energy system, able to reduce their costs while contributing to grid stability.
Some social housing providers are already participating in virtual power plants, where networks of home batteries are coordinated to respond to national energy needs. When supply is tight or demand is high, these systems can be paid for providing flexibility – revenue that can be shared with tenants or used to offset service charges.
Integration heating into the solar equation
To truly maximise efficiency and savings, it’s not just about generating clean electricity, it’s also about using it wisely. That’s why smart heating systems are a key part of the net zero puzzle.
This is where integration becomes critical. For example, by pairing solar panels and heat pumps with smart thermostats, households can shift heating demand to when solar electricity is available, maximising self-consumption and minimising grid reliance.
New tools are emerging that do just this, using predictive data and automation to adjust heating schedules in real time. These systems don’t require major changes to behaviour or routines, just a willingness to let technology optimise energy use in the background. In doing so, they help lower bills while supporting broader decarbonisation goals.
Coordinated solutions from industry leaders
The complexity of decarbonising social housing means there is no one-size-fits-all solution. It requires a coordinated, whole-system approach from building fabric improvements to renewable generation, storage, heating, and energy management.
Companies working in the space, such as Power On, work with social housing associations to deliver low-carbon heating and hot water solutions that significantly reduce carbon emissions while also lowering costs for residents.
Social housing sits at the intersection of some of the UK’s most pressing challenges: climate change, inequality, and housing quality. If we are to meet our climate targets while ensuring a just transition, the sector should embrace smarter, more flexible energy systems to reduce emissions reduction and create fairer outcomes for the people who need them most.
Stephen Day is director at Levelise
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