Hometree, a UK residential energy services company, has secured a £250m ($316.98m) asset-backed debt facility from Barclays to help UK homeowners finance the installation of solar panels, battery storage systems and heat pumps through a range of lease and loan products.
The zero-deposit payment options are designed to boost the domestic renewable energy market, helping homeowners switch to green power. Many homeowners will be able to “pay as they save”, with the forecasted savings they make through reduced energy bills exceeding their monthly payments from day one.
According to Hometree, although energy bills have fallen since their peak in April and October 2022, they are still 59% higher than winter 2021/22, stretching household incomes. The company said that as a result, “consumer interest in renewable energy systems is at an all-time high with over 220,000 heat pumps and solar installations in UK homes in 2023”.
The average cost to install solar and battery systems is £13,600, and £12,700–£31,500 for air source and ground source heat pumps, respectively. Hometree aims to use financing products to make installation more financially viable than these current market rates.
At the point of sale, the company offers zero-deposit leases and loans with low interest rates as well as long-term contracts for solar panels and battery systems, with heat pump options coming this summer. Customers will have up to 25 years to pay for the solar panels, spreading the cost of installation across the lifespan of the hardware.
The company aims to install more than 28,000 renewable energy systems in the next two years.
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 is why we are focused on removing barriers to help more households take control of their energy bills and carbon emissions.”
Hometree’s finance options come at a time when clean energy investment ramps up. According to the International Energy Agency, global investment in clean energy technology and infrastructure is set to reach $2trn in 2024, twice the amount going into fossil fuels. UK households will want to ride this wave.
