Ed Miliband plots £13billion energy overhaul to create 'zero bill' homes

In a major shift in policy the warm homes fund will invest billions of pounds into solar energy alongside batteries, and heat pumps.

Ministers anticipate that some households could end up paying virtually nothing for their energy, while others would see substantial reductions in their annual costs.

The initiative targets carbon emissions from the UK's 30 million residential properties and represents what the government describes as the largest public investment ever made to upgrade homes and address fuel poverty.

This approach marks a significant departure from previous government strategy, which concentrated billions of pounds on improving energy efficiency through insulation and double-glazing programmes.

Experts now contend that such measures fail to deliver value for money, arguing that homeowners would achieve greater savings by fitting solar panels rather than undertaking costly and disruptive insulation work.

The government is also expected to remove restrictions on plug-in solar units, which can be attached to balconies, patios and flat roofs without requiring professional installation.

These portable panels, priced between £180 and £300, could reduce household electricity costs by £115 to £180 annually.

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Following Germany's relaxation of similar regulations, more than one million homes purchased such units within two years.

Octopus Energy, Britain's biggest energy supplier, estimates that households could trim their monthly electricity costs by £60 on average, with some achieving savings of up to £90.

The company's technical director, Nigel Banks, suggested that approximately one million properties with adequate insulation could eliminate their energy bills entirely by combining solar panels, batteries and heat pumps.

"With flexible energy tariffs, the opportunity is now there for homeowners to effectively pay no energy bills at all," he said.

Mr Banks added that even properties unable to reach zero bills would benefit, noting that loan repayments for the equipment would remain considerably lower than the savings achieved.

Data published in September revealed that British industry faces the highest electricity prices in the developed world, with costs 63 per cent above those in France and 27 per cent higher than Germany.

UK households fare little better, ranking as the second most expensive globally for domestic electricity after Slovakia, paying double the rates charged in the United States.

The Department for Energy Security and Net Zero confirmed its commitment to the programme, stating: "We are investing an additional £1.5billion into our warm homes plan, taking it to nearly £15billion the biggest ever public investment to upgrade homes and tackle fuel poverty ever."