Energy supplier Octopus Energy has secured a massive £100 million funding injection that will enable more than 1,000 households to enjoy completely free energy bills for up to a decade in what's being hailed as a world-first initiative.
Revolutionary Zero Bills Scheme Expands
The substantial funding package, announced just before Christmas, includes £50 million from the Scottish National Investment Bank and has been raised through Octopus Capital's Affordable Housing Fund. This financial boost will accelerate the creation of affordable and intermediate rental properties where residents are guaranteed not to pay a single penny for their home energy consumption.
Launched initially in 2022, Octopus Energy's Zero Bills tariff represents a groundbreaking approach to household energy. The scheme allows customers to move into properties equipped with state-of-the-art green technology, including heat pumps, batteries and solar panels, completely eliminating energy bills for between five and ten years.
Partnerships Driving Widespread Adoption
Octopus Energy has already established collaborations with over 60 property developers to bring this vision to life. Major partners include Vistry, The Hill Group, Wates Residential, Thakeham, Lloyds Living, Aviva Investors - Packaged Living, Urban & Civic, Clarion Housing Association, Platform Housing Group and SNG.
The company's ambitious expansion plans have already seen approval for over 5,000 Zero Bills homes through partnerships with leading developers. These properties cover various housing types including affordable and private rent options, plus private and shared ownership properties.
Nigel Banks, Zero Bills Director at Octopus Energy, emphasised the transformative potential of the initiative: "For too long, people have had to choose between affordability and sustainability. Zero Bills homes remove that trade-off - they're cheaper to live in, better for the planet, and powered by the latest clean tech."
Global Ambitions and Local Impact
Octopus Energy has set an ambitious target to deliver 100,000 Zero Bills homes by 2030, demonstrating the company's long-term commitment to revolutionising how people consume and pay for energy. The initiative has already expanded beyond UK borders, with successful rollouts in Germany, France and New Zealand.
Jack Burnham, Head of Affordable Housing at Octopus Capital, highlighted the strategic importance of the funding: "Our aim for this year was to double the size of our Affordable Housing Fund, and we're so pleased to welcome our new investors, enabling us to close in on our next £500m milestone."
He added: "Tackling long-term fuel poverty by focusing on reducing energy usage in affordable homes, and radically increasing the amount of on-site generation is critical to our affordable housing strategy, so it's great to be collaborating with Octopus Energy to make this a reality."
The substantial investment represents a significant step forward in addressing both the cost of living crisis and environmental concerns, offering households genuine relief from soaring energy costs while promoting sustainable living through cutting-edge technology.
