Hometree, the residential energy services company, has secured £250 million from Barclays to help homeowners finance the installation of solar panels, battery storage systems and heat pumps through a range of leasing and loan products.
The no-down payment options are designed for the domestic renewable energy market, and plans include system monitoring and repairs to help homeowners make the switch to green energy.
Many homeowners will be able to work on a ‘pay as they save’ basis, with expected savings from lower energy bills exceeding their monthly payments from day one, claims Hometree.
Although energy bills have fallen since their peak in April and October 2022, they are still 59% higher than in winter 2021/22 and continue to put pressure on household budgets as the cost of living crisis continues.
As a result, consumer interest in renewable energy systems is at an all-time high, with over 220,000 heat pumps and solar panels expected to be installed in UK homes by 2023 – a record-breaking increase, according to MCS data.
Despite increased demand, green energy solutions are still out of reach for many households. The average cost to install solar and battery systems is £13,600 and for air or ground source heat pumps, it ranges from £12,700 to £31,500.
According to LCP Delta, 28% of solar panel customers used high-interest personal loans or credit cards to finance the installation last year. In times of persistently high interest rates and inflation, this risks putting an additional strain on household finances.
Solar panel payment plans are available for up to 25 years, giving customers the opportunity to spread the installation costs over the lifetime of the hardware. This means customers can benefit from lower monthly payments and, in many cases, “pay as they save,” ultimately providing a net saving where projected energy savings exceed their payments.
Just as cheap car finance boosted the new car sector, Hometree believes that cheap finance for home energy systems will play a crucial role in helping homeowners make the transition to renewable energy. Hometree’s leases include an ongoing service and maintenance guarantee as standard, providing additional peace of mind and cost certainty.
Simon Phelan, Founder and CEO of Hometree, said: “Many homeowners naturally want to invest in renewable technologies but are put off by the extraordinarily high upfront costs. That’s why we’re focused on removing barriers to help more households get their energy bills and carbon emissions under control. We’re delighted to be working with Barclays to help us develop and scale flexible finance solutions with all-inclusive protection built in so homeowners can make the switch to clean, green energy with confidence.”
Matt Boyes, joint managing director of Hometree Finance, said: “In the UK, some homes have some of the highest heating and electricity bills in the world, and homeowners pay a high price for this. But until now there has been no easy, affordable way to finance green energy upgrades that benefit homeowners’ wallets and the planet. Thanks to this new partnership with Barclays, installing solar panels or a heat pump will be as easy as leasing or buying a new car on credit.”
