Octopus Energy has introduced a new tariff designed to reduce electricity costs for social housing tenants while offering returns to landlords investing in green technology. The initiative is being piloted across several housing associations in Scotland.
The scheme, known as Tenant Power, aims to address a longstanding imbalance in the economics of renewable energy adoption in social housing. By linking bill reductions with revenue generation, it creates a shared financial incentive for both tenants and property owners.
A Shared Model for Savings and Investment
Tenant Power is described as the UK’s first energy tariff structured to benefit both tenants and landlords from renewable energy systems. According to reports, the model relies on homes fitted with solar panels and battery storage units that generate and store electricity on site.
Electricity not immediately used by tenants is stored and later exported to the grid during peak demand periods. This process helps stabilise the grid while generating income for landlords. At the same time, tenants benefit from lower unit electricity rates.
According to Octopus Energy, households on the tariff see electricity unit costs reduced by around 30%, equating to an annual saving of approximately £200 compared with a standard variable tariff. The company states that this dual benefit removes a key barrier that previously discouraged landlords from funding renewable installations, where tenants alone would have seen the financial gain.
Nigel Banks, zero bills director at Octopus Energy, said the economics of solar and battery systems had not previously worked well for social housing providers, but the new structure changes that balance by delivering returns alongside tenant savings.
Early Rollout across Scottish Housing Associations
The tariff is currently being introduced through partnerships with housing associations in Scotland, including West Highland Housing Association and Grampian Housing Association. The first phase with West Highland covers 132 homes, while Grampian’s initial rollout includes 114 properties with plans to expand further.
According to statements from the housing associations, the scheme aligns with broader efforts to manage affordability while improving sustainability across their housing stock. Brett Sadler, chief executive of West Highland Housing Association, noted that keeping living costs low remains a central priority, and the tariff provides a new mechanism to support that goal.
Grampian Housing Association has similarly indicated that the model enables investment in low-carbon technologies in a way that is financially viable for the organisation while delivering direct benefits to tenants.
Octopus Energy has set a target of enrolling 1,000 customers onto the Tenant Power tariff, with a further 10,000 homes already committed by the end of 2026. According to the company, the rollout forms part of a broader push towards decentralised energy systems and increased adoption of renewable technologies in residential settings.
The announcement comes at a time of continued pressure on household energy costs. Rising prices linked to global instability have contributed to concerns about declining living standards, reinforcing the relevance of schemes aimed at reducing domestic energy bills. Early feedback from tenants involved in the programme suggests the installation process has been straightforward, with some reporting noticeable reductions in their monthly costs alongside the environmental benefits of using solar energy.
