Octopus Energy is redefining how social housing landlords approach renewable energy investment through its pioneering Tenant Power tariff. The UK’s largest energy supplier has partnered with Hammersmith & Fulham Council to deliver the innovative green energy solution to 52 social homes across the London borough. This groundbreaking tariff enables tenants to slash their electricity bills by around £200 annually while providing landlords with revenue streams that make clean technology upgrades economically viable. Hammersmith & Fulham Council has become the first local authority in London to implement the scheme, which addresses a longstanding barrier to renewable energy adoption in social housing.

Breaking The Landlord Tenant Energy Divide

The Tenant Power model tackles a fundamental challenge that has historically prevented green energy investment in rental properties. For years, social housing landlords faced a misaligned incentive structure where they bore the capital costs of installing solar panels and battery systems while tenants captured all the financial benefits through reduced energy bills.

Nigel Banks, Zero Bills Director at Octopus Energy, said:

“Solar panels and batteries should be a no‑brainer for social housing – but until now the economics haven’t worked well enough. Tenant Power solves this by cutting tenants’ bills while giving social housing landlords a return for investing in green tech.”

The tariff works by enabling buildings equipped with solar panels and compatible battery systems to generate their own renewable energy. Any excess energy is automatically stored in the battery and sold back to the grid during peak demand periods, creating revenue for landlords while tenants benefit from 30% lower electricity unit rates compared to standard variable tariffs.

London Council Leads Green Housing Initiative

Hammersmith & Fulham Council’s implementation of Tenant Power forms part of its broader £10 million programme to retrofit more than 500 council homes with energy-saving improvements. The 52 properties in the initial phase have been equipped with solar panels, battery storage systems, and heat pumps to maximise energy efficiency and cost savings for residents.

Cllr Frances Umeh, Hammersmith & Fulham Cabinet Member for Housing and Homelessness, said:

“Upgrading our homes with modern, energy-saving improvements is a practical way we can help residents cut bills and stay warm. These works will have a lasting impact by creating healthier homes and improving comfort for our residents.”

The council has ambitious plans to expand the programme further, building on its recent achievement of receiving the highest national rating for housing service from the Regulator of Social Housing. This positions Hammersmith & Fulham as one of just a few local authorities in the country to receive the top grade.

Tenant Experience And Market Response

Early adopters of the Tenant Power tariff report positive experiences with both the financial savings and environmental benefits. The programme has already demonstrated its appeal beyond London, with existing customers expressing satisfaction with the simplified process and meaningful impact on household budgets.

Richard, Tenant Power customer from Halifax, said:

“I love that my bills are lower thanks to Octopus’ initiatives – the process was quick and easy, and it really makes a huge difference. It’s a bonus knowing I’m making the most of the sunshine with solar panels, and doing something good for the planet too.”

The initiative comes amid surging interest in low carbon technology, driven partly by households seeking energy independence amid market volatility. Recent data from Octopus Energy reveals heat pump sales have increased by 103%, solar panel sales are up 78%, and electric vehicle charger enquiries have risen by 42% as more consumers prioritise energy security.

Scaling Sustainable Social Housing Solutions

Octopus Energy has set an ambitious target of securing commitments from 10,000 homes to the Tenant Power programme by the end of 2026. This expansion plan reflects the company’s confidence in the model’s ability to overcome traditional barriers to renewable energy adoption in the social housing sector.

The partnership with Hammersmith & Fulham Council demonstrates how local authorities can play a crucial role in accelerating the transition to cleaner, more affordable energy systems. By creating a win-win scenario for both landlords and tenants, the Tenant Power model offers a scalable solution that could transform energy provision across the UK’s social housing stock. The success of this London pilot programme may encourage other local authorities to adopt similar approaches, potentially delivering widespread benefits for social housing residents while advancing national climate objectives.