Fast-growing home energy services company Hometree is teaming up with Barclays to raise £250m in debt financing to help homeowners finance the installation of solar panels, battery storage systems and heat pumps through a range of industry-leading leasing and loan products.
The no-deposit payment options are designed specifically for the domestic renewable energy market and plans include system monitoring and repairs to help homeowners safely switch to green energy. Many homeowners will even be able to “pay as you save,” with the projected savings they realize from lower energy bills exceeding their monthly payments from day one.
Growing demand for environmental friendliness
Although energy bills have fallen since their peak in April and October 2022, they are still 59% higher than in winter 2021/22, continuing to put pressure on already stretched household budgets amid the ongoing cost of living crisis. As a result, consumer interest in renewable energy systems is at an all-time high, with over 220,000 heat pumps and solar panels being installed in UK homes in 2023, a record increase, according to data from MCS.
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 is £12,700 to £31,500. According to LCP Delta, last year 28% of solar panel customers used high-interest personal loans or credit cards to finance installation, risking further strain on household finances at a time when interest rates and inflation remain high.
Democratizing green energy installation
Hometree’s groundbreaking financial products are designed to make renewable technologies accessible and affordable to more homeowners. Available at the point of sale through accredited installers, the company offers deposit-free leases and loans with low interest rates and long terms for solar panels and battery systems. There are also heat pump options in the summer. The company aims to install over 28,000 renewable energy systems in the next two years.
Payment plans are available for solar panels for up to 25 years, giving customers the option to spread installation costs over the life of the hardware. This means customers can benefit from lower monthly payments and in many cases “pay as you save”, ultimately resulting in a net saving as projected energy savings exceed their payments.
Just as low-cost car finance has boosted the new motor vehicle sector, Hometree believes affordable finance for home energy systems will play a crucial role in helping homeowners transition to renewable energy. Hometree’s rental agreements 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 exceptionally high upfront costs. That’s why we’re focused on removing barriers to help more households take control of their energy bills and carbon emissions. We are pleased to work with Barclays to help us develop and scale flexible financing solutions with built-in all-inclusive protection so homeowners can transition to clean, green energy with confidence.”
Matt Boyes, co-director of Hometree Finance, said: “The UK has some of the most expensive homes in the world for heat and electricity and this is costing homeowners dearly.” But until now there has been no easy and affordable way to upgrade to finance green energy that would benefit homeowners’ wallets and the planet. Through this new partnership with Barclays, installing solar panels or a heat pump will be as easy as leasing or buying a new car on finance.”
