Octopus Energy and bond bank Perenna, have launched the ‘Zero Bills’ home mortgage, aimed at promoting sustainable homeownership across the UK.
This mortgage allows homeowners to live in properties equipped with green energy technologies, such as heat pumps and solar PV, without any energy bills for at least ten years.
The ‘Zero Bills’ initiative, developed by Octopus Energy, has been integrated into Perenna’s affordability calculations, resulting in a lower mortgage rate compared to their standard offerings.
This mortgage aims to make it easier for potential homeowners to purchase sustainable homes by reducing the necessary deposit and lowering barriers to owning greener properties.
Octopus Energy has already accredited over 1,000 homes in the UK through agreements with developers and housing providers.
These homes span various tenure types, including private, shared ownership, affordable, and social rent.
Octopus plans to deliver 50,000 ‘Zero Bills’ homes globally by the end of 2025, with Perenna’s mortgage expected to facilitate more purchases of these green homes in the UK.
Michael Cottrell, Zero Bills Homes Director at Octopus Energy, commented: “Our ‘Zero Bills’ homes guarantee no energy bills for ten years.
“We are delighted that Perenna is the first bank to acknowledge the value of green tech by offering a lower interest rate to ‘Zero Bills’ customers compared with their standard mortgages.”
Arjan Verbeek, Co-founder and Chief Executive Officer at Perenna, said: “Decarbonising UK homes is a massive challenge and requires collaboration.”
