Thousands of homebuyers offered lifeline as 'zero-bills' scheme promises no energy costs for up to 10 years

Properties are signed up to a fixed tariff, which promises that any electricity used beyond what the home generates will still be covered for a minimum of five and up to ten years.

Chartered building surveyor Mark Puddicombe moved into his new smart home in Exeter in 2023. Unlike the detached period property he previously lived in, his new house can be fully controlled via an app.

He said: "It was more the renewables and smart home element. I really like gadgets and stuff, so all of that appeals to me. I was quite keen to have a smart home.

"The zero bills element came later on when there was an option to talk about having the battery pack and everything else. That's certainly been a positive."

Since moving in, Puddicombe has paid nothing towards electricity. His monthly usage updates confirm a bill of zero, thanks to staying within the fair usage policy of 10 megawatt hours (MWh) per year.

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"I literally get a zero bill every month. I haven't gone beyond the fair usage policy, it would be way more than I'd be using it," he said.

Electric vehicle charging is excluded from the allowance. According to energy regulator Ofgem, the average three-bedroom home uses around 14.2MWh annually.

Octopus Energy, which runs the scheme, estimates its properties typically consume less than 6MWh. In 2024, they kicked off a new mission to build 100,000 Zero Bills homes by 2030.

The smart home technology allows Puddicombe to manage heating and lighting via his phone. "It knows I've got my phone with me, so if I come home at night and it's after dark, then the app starts and the lights will come on for a couple of minutes before I get into the house," he said.

His four-bedroom property includes triple-glazed windows and an advanced mechanical ventilation and heat recovery system. "Even if I were paying for the energy, I'd still be paying a lot less proportionately than if I were in a traditional, older home," he added.

The zero-bills scheme currently only applies to newly built homes designed specifically for the tariff. Octopus has partnered with developers including Bellway, Vistry and Persimmon, with a 130-home development planned in Bedfordshire.

Octopus says it can make the model work financially by exporting excess energy generated by homes back to the grid. It currently guarantees zero bills for between five and ten years.

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Around 1,200 homes are already accredited, and the firm aims to build 100,000 zero-bill homes by 2030.

In a recent demonstration, Octopus partnered with modular house builder Starship and the Liverpool City Region Combined Authority to construct a smart home in just two days during the Labour Party Conference

The company said the rapid build highlighted how quickly a home can be created that generates and stores its own energy, offering residents the ability to live comfortably without energy costs for at least a decade.

It described the initiative as "an exciting glimpse of what the future holds."

While setup costs can range between £5,000 and £20,000 depending on home size and existing infrastructure, the scheme offers long-term savings and energy independence.

An estimated 500,000 homes built since 2013 could be upgraded to meet the standard and benefit from the zero-bills model.

Puddicombe says the biggest appeal goes beyond financial savings: "I like the design as well, they're nice, modern-looking places."