Even with the AC on full blast, electricity bill is 'zero'... The secret behind 10 years of 'free power' from this company [Tech Talk]

100,000 Zero Bill Homes to Be Supplied by 2030
The 18 Trillion-Won AI "Kraken" Is the Core

What if you could run your air conditioner as much as you want and still pay zero for electricity? In the UK, this has now become a reality. This is thanks to the 'Zero Bill (Zero bill·free charge)' homes developed by Octopus Energy, which has emerged as the UK's number one power distribution company just ten years after its founding in 2015.

Homes with No Electricity Bills, 100,000 to Be Supplied by 2030

'Zero Bill Home' service provided by Octopus Energy. Octopus Energy website

Zero Bill Homes are equipped with residential solar panels, energy storage systems, and Octopus's AI-powered energy management system. After construction companies build the houses, Octopus employees retrofit them to meet Zero Bill standards.

The first Zero Bill Homes were unveiled in the UK in March 2025, and currently, about 130 homes are in operation. Octopus plans to supply 100,000 Zero Bill Homes in the UK by 2030. The company is also expanding its business to other countries, including Germany and New Zealand.

Zero Bill Homes guarantee residents free electricity for at least ten years. This does not mean Octopus is running its business at a loss. By optimizing the solar panels, energy storage systems, and AI-powered distribution network installed in each home, Octopus reduces electricity waste to zero and earns profits from the surplus electricity generated.

A zero-energy house complex with solar panels installed. Octopus Energy website

In fact, it is already possible to reduce electricity bills with residential solar panels in South Korea. If a household installs a 'mini solar module' of 1 to 3 kilowatts (kW) or more, Korea Electric Power Corporation deducts electricity charges based on the amount of power generated. Octopus's Zero Bill Homes use a similar approach but take it a step further.

In the UK, about 52% of total electricity production in 2023 came from wind and solar power. This means that when there is a lot of wind or strong sunlight, electricity production increases and prices drop, while the opposite happens when conditions are less favorable. The energy storage systems installed in Zero Bill Homes store energy when electricity prices are low and send it back to the grid when prices rise, generating a profit. This is how the electricity bill is reduced to zero. All of this complex grid operation is managed entirely by Octopus's AI system.

The 18 Trillion-Won AI 'Kraken' Is the Core

Octopus Energy's power grid distribution service managed by the Kraken AI system. Octopus Energy website

Octopus's AI system that manages Zero Bill Homes is called 'Kraken.' In fact, Kraken began as proprietary software (SW) that automated customer electricity bill management and call center operations. As Octopus grew, Kraken was able to collect electricity demand data from millions of households, and the AI trained on this data was then deployed to manage the power grid.

Octopus is also actively developing future AI technologies. At the 'Centre for Net Zero,' established by Octopus, a project called 'Faraday' is underway, which generates various virtual scenarios of electricity demand and supply for Kraken to train on.

Once trained, Kraken can manage the grid even more efficiently and develop the ability to respond to unexpected situations, such as an oversupply or shortage of energy. Previously, in 2017, Google's AI subsidiary DeepMind also attempted to develop an AI to optimize electricity demand and supply in partnership with the UK grid operator National Grid, but the project was abandoned after three years of trial and error.

According to Octopus, as of early 2025, Kraken manages the electricity for 70 million households worldwide. Thanks to its advanced technology, even competing energy companies such as the US branch of EDF Energy, Tokyo Gas, and the North American branch of National Grid have adopted and are using Kraken. British media estimate the value of Kraken at over 10 billion pounds (about 18.6 trillion won), and report that Octopus aims to spin off Kraken as an independent subsidiary within the next year.