Octopus Energy Social Housing Tariff and Social Housing Savings: The Complete Guide

Octopus Energy’s social housing tariff—called Tenant Power—is a specialist electricity tariff that gives social housing tenants discounted bills while giving landlords a return on solar and battery investments. Tenants in eligible homes can save around £200 per year on average, and up to £432 per year when a heat pump is also installed, compared with a standard variable tariff.

What is the Octopus Energy social housing tariff?

The Octopus Energy social housing tariff is called Tenant Power. It is a fixed-discount electricity tariff for social, affordable and shared‑ownership homes with solar panels and an Octopus‑optimised battery. Tenants receive a lower unit rate, while landlords earn income from exported solar power.

Tenant Power is the UK’s first tariff explicitly designed to share the financial benefits of on‑site renewable energy between social housing landlords and their tenants. Before Tenant Power, many tenants in social housing could not benefit fully from solar or battery installations because the tariff structure did not pass savings through, or landlords received no return on their investment.

Tenant Power is available only to homes that have:

• Solar PV panels on the roof, and
• An Octopus‑optimised battery storage system.

The scheme is open to social housing, affordable housing and shared‑ownership properties managed by housing associations, local councils or similar landlords.

How does the Tenant Power tariff work?

Tenant Power works in four steps: the landlord installs solar and a battery, the tenant switches to the Tenant Power tariff, the tenant immediately pays a lower electricity unit rate, and the landlord receives monthly income reports to invoice against. The discount is fixed and shared fairly across all eligible tenants.

The mechanism is intentionally simple so it can be scaled across thousands of homes:

1. Landlord installs solar panels and a battery
   The landlord (for example a housing association) installs solar PV and an Octopus‑optimised battery in eligible properties. These systems generate and store electricity from sunlight.
2. Tenant joins the Tenant Power tariff
   The tenant switches their electricity supply to Octopus Energy and enrolls on the Tenant Power tariff. The property must have solar and battery to qualify.
3. Tenant saves money immediately
   The tenant’s electricity bill uses a discounted unit rate rather than the standard variable tariff (SVT). This discount is fixed for the year, so it acts as a buffer when energy prices rise.
4. Landlord receives income from exports
   Extra solar energy that is not used on‑site is automatically exported to the grid at peak times. Octopus pays the landlord for these exports, creating a revenue stream that can fund further retrofits.

The discount rate is agreed on a case‑by‑case basis with the landlord and depends on:

• The number of solar panels,
• The size of the battery, and
• The share of benefits taken by the landlord.

Savings also depend on the tenant remaining on the Tenant Power tariff, which allows Octopus Energy to smart‑control the solar and battery system for optimal performance.

How much can social housing tenants save with Tenant Power?

Tenants on Tenant Power can save around £200 per year on average compared with a standard variable tariff. If a heat pump is also installed, average savings can rise to about £432 per year. Exact savings depend on system size and the agreed discount rate.

Octopus Energy states that a 25% discount off the SVT unit rate would save roughly £200 annually, based on price cap rates at the time of the announcement. The discount itself is not fixed at 25% for all homes; it is negotiated between Octopus and the landlord depending on:

• The size of the solar array,
• The battery capacity, and
• How much of the export income the landlord retains.

For homes that also replace gas heating with a smart heat pump, average tenant savings can reach around £432 per year. This higher figure reflects:

• Lower electricity unit rates via Tenant Power, and
• Reduced heating costs compared with gas boilers, as heat pumps are more efficient and run on the discounted electricity tariff.

These savings are relative to a standard variable tariff and assume:

• The tenant remains on Tenant Power, and
• The solar and battery systems operate as designed.

Which homes and landlords are eligible for Tenant Power?

Tenant Power is available to social, affordable and shared‑ownership homes with solar panels and an Octopus‑optimised battery. Eligible landlords include housing associations, local councils and other social housing providers.

The tariff is not available to private renters or owner‑occupiers. It is specifically targeted at:

• Social housing ( council and housing association homes),
• Affordable housing (intermediate rent or shared ownership), and
• Shared‑ownership properties managed by qualifying landlords.

Eligible properties must meet technical requirements:

• Installed solar PV panels, and
• An Octopus‑optimised battery storage system.

The first rollout phases have included:

• 1,500 homes in northern England with Together Housing Group,
• Properties in areas such as Lancashire, Manchester, Yorkshire and the East Riding of Yorkshire.
• A pilot with four properties in Wales with United Welsh, the first Welsh housing association to join.

Octopus Energy has stated a target of enrolling 10,000 homes by the end of 2026, indicating a planned expansion beyond the initial pilots.

How does Tenant Power share benefits between landlords and tenants?

Tenant Power is designed so tenants get a fixed discount on their electricity bills, while landlords earn income from exported solar power. This creates a shared financial incentive to install more solar and batteries.

Before Tenant Power, there were two common problems:

1. Tenants did not benefit from installed low‑carbon tech because tariffs did not pass savings through.
2. Landlords received no return on their investment in solar and batteries, making it harder to justify further upgrades.

Tenant Power addresses both issues:

• For tenants:
  The discounted unit rate reduces their electricity bill regardless of roof orientation or sunshine levels. The discount is the same for all tenants with solar and batteries in the same scheme, so savings are fair and predictable.
• For landlords:
  Landlords receive payment for excess solar energy exported to the grid. This income can be used to fund further retrofits, such as more solar, batteries, insulation, or heat pumps.

This model aligns incentives:

• Landlords are more willing to invest in green tech because they see a clear financial return.
• Tenants are more willing to switch to the tariff because they see immediate bill savings.

What technology is required for Tenant Power?

Tenant Power requires solar PV panels and an Octopus‑optimised battery. Additional low‑carbon tech such as smart heat pumps can increase tenant savings but are not mandatory for the basic tariff.

The core technology stack is:

1. Solar PV panels
   These generate electricity from sunlight during the day. The electricity can be used directly in the home, stored in the battery, or exported to the grid.
2. Octopus‑optimised battery
   This stores excess solar energy for use later in the day or at night. Octopus uses smart controls to decide when to store, use, or export electricity to maximise value for both tenant and landlord.

Optional but impactful additions:

• Smart heat pumps
  When a heat pump replaces a gas boiler, the home’s heating runs on electricity rather than gas. Combined with the Tenant Power discount, this can raise average tenant savings to around £432 per year.
• Other energy efficiency measures
  Insulation, efficient windows, and smart controls reduce overall demand, making the solar and battery system more effective.

Tenant Power is specifically designed to work with Octopus’s smart platform, which can:

• Predict solar generation,
• Manage battery charging and discharging, and
• Export electricity at times when it is most valuable to the grid.

How does Tenant Power compare with other social tariffs and energy support?

Tenant Power is a technology‑based tariff that requires solar and a battery. It differs from proposed government “social tariffs” that would give means‑tested price cuts to low‑income households regardless of technology.

There are two distinct concepts often discussed under “social tariff”:

1. Octopus Tenant Power (technology‑based)
   • Requires solar panels and a battery.
   • Gives a fixed discount on electricity unit rates.
   • Benefits landlords through export income.
   • Available only to social, affordable and shared‑ownership homes that meet the technical criteria.
2. Proposed government social tariff (means‑tested support)
   • Aims to help low‑income households with fuel poverty.
   • Would provide a percentage discount on gas and electricity bills based on income, not on technology.
   • Has been discussed as a 21% cut for households earning under around £38,000 (before housing costs).
   • Does not require solar or batteries and is not tied to a specific supplier.

Tenant Power is therefore a supplier‑led, technology‑led solution, while government‑style social tariffs are income‑based safety nets. The two can coexist: a low‑income tenant in a solar‑equipped social home could in principle benefit from both a technology discount and a means‑tested social tariff if such a scheme were introduced.

What role does Tenant Power play in wider social housing decarbonisation?

Tenant Power supports the UK’s decarbonisation of social housing by creating a financial model that encourages landlords to install solar, batteries and heat pumps. It complements government funds such as the Warm Homes: Social Housing Fund.

Social housing decarbonisation aims to:

• Reduce carbon emissions from heating and electricity,
• Lower fuel poverty by cutting bills, and
• Improve comfort and energy efficiency in older homes.

Tenant Power contributes by:

• Making solar and battery installations financially viable for landlords through export income.
• Giving tenants visible bill savings, which builds support for further upgrades.
• Creating a scalable model that can be rolled out across thousands of homes without requiring direct subsidies for each property.

The Warm Homes: Social Housing Fund has allocated £1.29 billion to upgrade social housing stock with:

• Energy efficiency measures (solar PV, insulation), and
• Low carbon heating technologies (heat pumps).

Tenant Power can be layered on top of these investments:

• Funded upgrades install solar, batteries and heat pumps.
• Tenant Power then ensures tenants and landlords both share the ongoing financial benefits.

How can tenants and landlords get started with Tenant Power?

Tenants should ask their landlord if they are interested in joining Tenant Power, and landlords should contact Octopus Energy to discuss pilot schemes and rollout plans. Octopus provides an email template tenants can use to make this request.

For tenants:

1. Check whether your home is in social, affordable or shared‑ownership housing.
2. Ask your landlord whether they have solar panels and batteries installed or plan to install them.
3. If yes, ask whether they are considering or already participating in Tenant Power.
4. If your landlord is not yet aware, you can send them an email using Octopus’s template, which explains the tariff and asks them to consider joining.

For landlords:

1. Contact Octopus Energy via the dedicated hello@octopus.energy address or press contacts listed in official announcements.
2. Discuss which properties are eligible and what technology is already in place.
3. Plan installation of solar and batteries where needed, potentially using funds such as the Warm Homes: Social Housing Fund.
4. Roll out Tenant Power to eligible tenants in phases, starting with a pilot group if desired.

Octopus has indicated that the scheme is designed to be scalable, with a target of 10,000 homes by the end of 2026, suggesting that more housing associations and councils will be able to join in the coming months.
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What are the limitations and conditions of Tenant Power?

Tenant Power is limited to homes with solar and an Octopus battery, and savings depend on the agreed discount rate and on tenants staying on the tariff. It is not a universal social tariff and does not replace broader fuel poverty support.

Key limitations include:

• Technology requirement:
  Homes must have solar panels and an Octopus‑optimised battery. Properties without these cannot join Tenant Power.
• Discount variability:
  The exact discount and resulting savings depend on system size and the landlord’s agreed share. Not every tenant will save exactly £200; some may save more or less.
• Tariff commitment:
  Savings assume the tenant remains on Tenant Power, which allows Octopus to manage the solar and battery system. Switching away may remove the discount.
• Eligibility scope:
  The tariff is only for social, affordable and shared‑ownership homes, not private rentals or owner‑occupied houses.

Tenant Power should be viewed as:

• A targeted, technology‑driven solution for social housing, and
• One part of a broader ecosystem that includes energy efficiency upgrades, government funding, and potentially wider social tariffs for low‑income households.

Why does Tenant Power matter for the future of energy and housing?

Tenant Power matters because it shows a practical way to align landlord and tenant interests in decarbonisation, creating a scalable model for affordable, green energy in social housing.

The broader context includes:

• Rising energy prices and persistent fuel poverty in the UK, particularly in older, inefficient homes.
• The need to decarbonise heating and electricity in line with net zero targets.
• A historical mismatch where landlords invest in green tech but tenants see little benefit, or vice versa.

Tenant Power addresses this by:

• Creating a fair revenue‑sharing model that makes sense for both parties.
• Demonstrating that smart tariffs can turn distributed solar and batteries into real bill savings for vulnerable households.
• Providing a blueprint that other suppliers and governments could adapt for different contexts, such as private rentals or public buildings.

As more social housing providers adopt similar models, the approach could:

• Accelerate the rollout of solar, batteries and heat pumps in social housing,
• Reduce long‑term reliance on fossil fuels for heating and electricity, and
• Help ensure that the benefits of the energy transition are shared more evenly across society.

For tenants, landlords and policymakers, Octopus Energy’s social housing tariff shows that technical innovation, commercial design and social policy can work together to deliver measurable savings and a cleaner energy system without requiring every household to pay upfront for new technology.