Rishi Sunak explains why energy rebate is paid per household
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As the country grapples with a crippling crisis due to the spiralling global cost of gas, Britain has been scrambling to wean itself off fossil fuels so consumers can avoid forking out extra cash. Now, a renewable project between Octopus and Ilker will let homebuyers purchase homes with solar panels, battery storage and air source heat pumps so that they are self-sufficient.
This means the homes will not be powered by gas, and in turn, homeowners would only have to pay energy bills if they use over 10MWh of energy.
But Octopus Energy’s CEO Greg Jackson estimates that this is treble the annual usage that standard households use.
And any excess energy will be able to be fed back to the grid too.
Giles Carter, Ilke’s chief executive, said that buyers will have to pay an extra £8,000-£9,000 for these renewable installations.
The project will be piloted with a pair of two-bedroom, semi-detached family homes in Essex.
But by 2030, the companies plan to extend the scheme to more than 10,000 homes.
Mr Jackson said: “We think [the homes] could be self-sufficient forever. That’s a blueprint.
“Sooner or later, you start to be able to transform an energy system when you are doing that.”
While Octopus is guarantying zero bills for a 12-month period, both company heads expect that the zero tariff will become permanent further down the line.
Mr Carter said: “By 2030, we hope there is zero incremental cost.”
This comes after it was revealed that the energy price cap (maximum annual tariff) is expected to soar to £2,800 in October.
Industry regulator Ofgem has said that this could push a further 12 million people into fuel poverty.
But as the spiralling costs of wholesale gas are the main fuel for the crisis, this new scheme could be a saving grace that would be very convincing for struggling households.
Mr Carter said: “The most powerful word in marketing is free. How do we create a carbon transition?
“We create a proposition that consumers can engage with. If you can offer zero bills and save the planet as well, then you’re on the right track.”
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And cutting emissions to help slash bills has been a key part of new Government strategies.
Several Government initiatives, such as the £1billion Net Zero Innovation Portfolio and the £505million BEIS Energy Innovation Programme (EIP), are addressing this.
The EIP involves a range of investments into a number of clean energy technologies such as smart systems, carbon capture and storage and nuclear innovation.
The Net Zero Innovation Portfolio funding is also geared towards low-carbon technologies.
And on May 31, the Government also announced that it will provide a further £31million of new funding to help industry slash its reliance on fossil fuels while also helping to cut bills.
Energy and Climate Change Minister Greg Hands said: “As we accelerate the UK’s energy independence by boosting clean, home-grown, affordable energy, it’s crucial that our industries reduce their reliance on fossil fuels.
“This investment will help them to not only cut emissions, but also save money on energy bills, on top of supporting jobs by encouraging green innovation across the UK.”
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