Summary

Centralised energy systems built around fossil fuels are making way for decentralised grids powered by variable renewable generation. To harness the power of the sun and wind to meet increasing use of clean electricity, we need grids that are not just bigger, but smarter - capable of matching demand to supply, as well as vice versa.

Rather than firing up or down a generator, smart energy systems will depend on managing multi-directional flows of energy from more varied participants. Our homes and businesses will no longer be passive recipients of energy, but active participants in the system providing flexible electricity demand.

We therefore need to fundamentally rethink building performance and look beyond simply the capacity to reduce demand. We need to measure capacity for demand flexibility, and explore ways to use these metrics to incentivise 'smart' building upgrades and unlock demand flexibility capacity at scale.

To this end, backed by a cross-industry coalition, Centre for Net Zero and Energy Systems Catapult are calling for a new demand flexibility metric in the UK: the Smart Building Rating (SBR). We have launched a proof-of-concept tool to help demonstrate its value, especially to the consumer in improving their home and cutting their bills.

This report outlines the SBR’s use cases and technical requirements, while proposing a vision for building metrics that are fit for net zero.

We have also published a technical annex that sits alongside this report.

Key recommendations

① Introduce the Smart Building Rating (SBR) as a demand flexibility metric, as part of its reforms to the EPC and Future Homes Standard in 2025.

② Evolve the Energy Performance Certificate (EPC) into a holistic suite of metrics for different aspects of building performance, including flexibility, efficiency, cost and climate impact.

③ Develop the demand flexibility metric as a ‘wrapper’ to the new Home Energy Model, using the dynamic simulation modelling engine.

④ Encourage Distribution Network Operators to use a Connection Readiness Indicator (CRI) to smooth the consumer journey for low-carbon technologies and proactively prepare networks for electrification.

⑤ Integrate all metrics into a digital building profile that allows easier tracking of progress towards net zero.

⑥ Digitise all building metrics, drawing on developing data systems; support interactive formats and user input in the interim, while requiring validation at key points, such as selling a property.

⑦ Develop in-use metrics using novel methods to measure actual energy use; these can underpin behavioural incentives, including of demand flexibility.