A whole lot of properties are set to get free power payments for 5 years beneath a scheme being rolled out by Octopus Power and housebuilders.
The ‘zero payments’ scheme sees homes get inexperienced expertise put in resembling a warmth pump, photo voltaic panels, good meter and residential battery, then signal as much as Octopus’s Zero power tariff.
Octopus ensures every property can pay nothing for power even when it makes use of greater than it generates.
Every house solely will get a restricted quantity of free electrical energy per yr earlier than being charged, however the common family could be very unlikely to exceed this.
Massive fan?: Many properties can pay nothing for power for 5 years beneath the Octopus scheme
Electrical energy is generated by photo voltaic panels fitted to every house and managed by Octopus’s Kraken system.
Any surplus power a house generates shall be siphoned off by Octopus.
The zero payments scheme began small, with three eligible properties made by Bellway in Stafford’s Victoria Gate property.
However the scheme is now being expanded, with 250 extra Bellway properties in Bedfordshire. Octopus desires to have 100,000 zero payments properties by 2030.
The typical house within the UK pays power payments of £1,568 a yr, as a result of rise to £1,717 on 1 October – the extent of the Ofgem value cap.
Which households can enroll?
At present the zero payments scheme solely works with new construct properties which were designed across the specs of the Zero tariff.
However sooner or later Octopus hopes to have the ability to develop the scheme to any house with photo voltaic panels, a warmth pump and residential batteries.
Octopus estimates that 500,000 UK properties constructed since 2013 might be eligible to be upgraded to zero payments requirements.
Regional housebuilders Verto and GS8 have mentioned 100 per cent of their future properties shall be zero payments.
Different smaller builders, together with Thakeham, Edenstone, and Hill Group are additionally signed up.
Zero payments properties are additionally out there for hire and shared possession by housing associations Platform, Clarion and SNG, alongside personal rental suppliers Citra and Packaged Residing.
Octopus founder Greg Jackson mentioned: ‘This new goal for our zero payments venture is one thing that has by no means been finished earlier than.
‘In simply six years, 100,000 owners, households and {couples} might be dwelling with out ever having to think about an power invoice.’
Is the power actually free?
Sure – however there are some caveats.
Firstly, you get 10 megawatt-hours (MWh) of free electrical energy a yr, and Octopus will cost you for something you utilize over that stage.
Power regulator Ofgem says the typical three-bedroom family makes use of round 14.2 MWh of power a yr, or virtually 50 per cent greater than Octopus would enable beneath its zero payments scheme.
Nonetheless, Octopus estimates {that a} three-bedroom house signed as much as its zero payments scheme would solely use 6 MWh of electrical energy, properly under the cap.
It’s because these properties could be properly insulated and fitted with a warmth pump, serving to to maintain electrical energy use down.
The Octopus tariff additionally doesn’t enable electrical automobiles to be charged totally free, and this should be paid for too.
There aren’t any standing costs with Octopus Zero tariffs.
