Perenna and Octopus (l)ink arms to offer world-first ‘Zero Bills’ mortgage

  • Innovative lender Perenna is first to unlock lower rates for ‘Zero Bills’ homes
  • New mortgage recognises the value of clean tech in homes, removing the cost of energy bills
  • Research shows two-thirds of adults below the age of 30 consider sustainability an important factor when looking for a home - ‘Zero Bills’ homes enables them to benefit from the green dividend

London, 17 May 2024 - Octopus Energy and the UK’s first covered bond bank, Perenna, today launch the world’s first ‘Zero Bills’ home mortgage, unlocking sustainable homeownership for many more people across the country.

‘Zero Bills’ is a cutting-edge smart initiative created by Octopus that allows customers to move into homes that are kitted out with green energy technology, such as heat pumps and solar PV, and with no energy bills for at least ten years.

Perenna is the first bank to factor the value of Octopus’ ‘Zero Bills’ initiative into its affordability calculations. The ‘Zero Bills Mortgage’ offers a lower rate than Perenna’s standard mortgages, rewarding customers for buying a sustainable home.

Perenna will give potential homeowners much greater purchasing power, reducing the deposit needed and driving down the barriers to buying greener homes.

Octopus Energy has already accredited over 1,000 homes across the UK through contracts with developers and housing providers. Accredited plots span a range of tenure types, including private and shared ownership, as well as affordable and social rent.

Octopus plans to deliver 50,000 ‘Zero Bills’ homes globally by the end of 2025. Perenna’s ‘Zero Bills Mortgage’ will allow even more homes in the UK to be bought and sold by green-minded homeowners.

Research from Make UK Modular shows two-thirds of adults below the age of 30 consider sustainability to be an important factor when looking for a home*.

Michael Cottrell, Zero Bills Homes Director at Octopus Energy, comments: “Our ‘Zero Bills’ homes guarantee no energy bills for 10 years. We're 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. And we’ll keep innovating and partnering with like-minded companies to further speed up the move towards affordable, cleaner living.”

Arjan Verbeek, Co-founder and Chief Executive Officer at Perenna, says: “Decarbonising UK homes is a massive challenge and requires collaboration. We’re glad to partner with Octopus Energy who want to solve structural issues and take ambitious steps to deliver them. The ‘Zero Bills’ initiative is a testament to how forward-thinking Octopus Energy is. We can’t wait to unlock ‘Zero Bills’ homes for more people through our innovative mortgage offer.

Rachael Hunnisett, Associate Director for Built Environment at the Green Finance Institute, says: “The Green Finance Institute is proud to have enabled the Octopus and Perenna collaboration, two organisations familiar with challenging the norm in the pursuit of market-leading innovation. Recognising the impact of energy costs on homeowners and reflecting this in borrowing amounts is a pioneering step forward for the mortgage industry. Collaboration and innovation – ensuring that changing customer needs are at the heart of product design – is the key to transitioning the UK housing stock towards net zero.”


Notes to editors:

* Make Modular Green Shoots Report 2023. Representative survey of 2,300 adults in the UK.

Press Contacts

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About Octopus Energy Group

Octopus Energy is a global energy and technology group, driving the affordable, green energy system of the future. Its operations span 17 countries and the entire energy value chain. The group invests in, builds and flexibly manages renewable energy, operating a £7 billion portfolio of projects – one of Europe’s largest.

Octopus serves 7.8 million customers through its retail arm, and has licensed its advanced data and machine learning platform, Kraken, to support over 54 million customer accounts worldwide through licensing deals with energy companies, including EDF, E.ON and Origin Energy.

Kraken enables Octopus to drive the electrification of heat and transport through smart tariffs and innovative cleantech. Backed by pension funds, investors and energy giants, Octopus Energy Group businesses deliver cheaper, greener energy and cutting-edge tech to countries and customers worldwide. For more information, check out our website.

About Perenna

Perenna is an innovative bank with an ambition to change the UK mortgage market. Putting customer’s needs at the heart of its proposition, Perenna believes that everyone that can afford a home, should be able to own one. Combining security and flexibility, a Perenna mortgage allows borrowers to lock in their monthly payments for the whole mortgage term. No new deals, no rising rates, no shocks. Providing an offering that can be as attractive to first time buyers as it is to those wanting to borrow into retirement, Perenna is on a mission to create a nation of happy homeowners.

For more information, check out our website.

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