OCTOPUS Energy has announced it is expanding its world-first Zero Bills tariff into Scotland and people across the country will soon be able to benefit from moving into homes that promise no bills for at least 10 years.
It might sound too good to be true, but the scheme is now being rolled out with discussions well underway about upgrading homes under construction to the sufficient standard in the likes of Glasgow, Edinburgh and Dundee. It is hoped some customers will be making use of the tariff from later this year.
So how does this revolutionary initiative work? We spoke to Nigel Banks, Octopus Energy’s Zero Bills director, to find out more.
What is the “Zero Bills” tariff?
“A lot of people’s default view is that it might be hard to generate enough energy from solar panels in Scotland to cover your entire energy bill, but it absolutely is [possible] with the homes we’ve looked at so far,” said Banks.
That’s right. This tariff will enable people to move into homes that are fully kitted out with green technology including a heat pump, battery storage and solar panels, and it guarantees no energy bills for customers for at least 10 years.
The launch in Scotland follows the introduction of the New Build Heat Standard legislation in April 2024, requiring low-carbon heating systems in all new homes.
The energy provider aims to deliver 100,000 “Zero Bills” homes by 2030, and has already rolled out the initiative in England, Germany and New Zealand.
Banks (below) told The National Octopus has been in discussions with developers and social housing providers constructing homes in Dundee, Glasgow, Edinburgh and as far up as Aberdeen about installing the appropriate equipment so people can move into homes eligible for the tariff.
“From April last year, there was a new legislation in Scotland called the New Build Heat Standard that requires low carbon heating in all new homes so effectively the homes will already have the right levels of insulation, the right heating system in place, so the upgrade is just adding more solar panels on the roof if they haven’t got them and a home battery,” said Banks.
“In England, more homes are still being built on gas so that’s been a little bit harder as we do need electric heating systems that we can smart control.”
How does it work?
The concept of not paying for energy may seem alien, especially in a climate when standing charges are so high.
But the reality is, if we have the right technology, even in the frustrating way the energy market in the UK is designed, it is possible to make it work.
Banks explained Zero Bills homes are effectively mini power stations that generate and store their own energy, with customers not even having to think about when the best time is to turn their heating on and off.
“It has solar panels on the roof that is generating its own electricity. We store that electricity in the battery, so we’re minimising the amount of electricity we’re having to import from the grid year-round. These are also homes that are well-insulated so that reduces the amount of heating that’s required,” Banks explained.
“We can also optimise when we discharge and charge that battery. In a Zero Bills home you just set your thermostat and we will work out the best time to heat up your hot water, charge your battery.
"So when the grid is clean and the cost of energy is cheap, there’s excess wind being generated, or even the price of energy goes negative, we can fill up that battery with that clean, free or low cost energy.
“When the price of electricity is very high, particularly in the evenings, and when gas-fired power stations are coming on on the grid – if a gas-fired power station is required somewhere in the UK that sets the price for the whole of the UK – we can get effectively paid to put that electricity back into the electricity grid at that higher price.
“So we are generating enough revenue by putting power back into the grid at peak time to offset the cost of bringing power in from the grid.”
Addressing energy injustices in Scotland
A huge frustration Scots have is they are faced with some of the highest energy prices in Europe – often paying for gas power stations to be turned on in England while it is windy north of the Border – while Octopus Energy has argued they should be enjoying the opposite because of the renewable potential on their doorstep.
Banks said he was delighted to see the Zero Bills initiative being rolled out in Scotland so Octopus can make use of the huge amount of renewable energy that is on the grid in Scotland.
He said: “It does give us the opportunity to make use of that power when currently wind farms are being turned off, and support the grid to use more energy from what’s available locally.
“This is one way we can unlock and demonstrate the potential that is there with the technologies that are now commercially viable to get bills down, literally to zero.”
Do you get limitless free energy?
Many of you might be wondering does this scheme really give you as much free energy as you like, and the answer is … not quite.
Banks explained there is a fair use allowance which is set at twice the amount of energy the home would be expected to make use of. After that, you would have to pay any excess, but even this gives people more control than they currently have faced with sky-high standing charges.
“For the end consumer they can live in their home and not have to worry about paying an energy bill. In terms of stress, that has a massive impact on people particularly with prices going so high in the last few years,” Banks said.
