Hometree secures £250 million for affordable energy installations in British households

Hometree, a British home energy services company, has secured a £250 million ($316.98 million) asset-backed debt facility from Barclays to help British homeowners finance the installation of solar panels, battery storage systems and heat pumps through a range of leasing and loan products.

No-deposit payment options aim to revitalize the nation’s renewable energy market by helping homeowners transition to green energy. Many homeowners will be able to ‘pay as you save’ and will make projected savings from reduced energy bills in excess of their monthly payments from day one.

According to Hometree, although energy bills have fallen since the peak in April and October 2022, they are still 59% higher than in winter 2021/22, leaving households over-income. The company said that as a result, “consumer interest in renewable energy systems is at an all-time high, with over 220,000 heat pump and solar PV installations in UK homes by 2023.”

The average cost of installing solar and battery systems is £13,600 and £12,700-31,500 for air source and ground source heat pumps respectively. Hometree aims to leverage financial products to make installation more financially viable than current market rates.

At the point of sale, the company offers low-interest leasing and no-deposit loans, 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 installation costs over the life of the equipment.

The company aims to install more than 28,000 renewable energy systems over the next two years.

Simon Phelan, founder and CEO of Hometree, said: “Many home owners naturally want to invest in renewable technologies but are put off by the extremely high up-front costs. That’s why we’re focused on removing barriers to help more households take control of their energy bills and greenhouse gas emissions.”

Hometree’s financing options come at a time of growth in clean energy investment. According to the International Energy Agency, global investment in clean energy technologies and infrastructure will reach $2 trillion in 2024, twice the amount allocated to fossil fuels. UK households will want to ride this wave.

‘Hometree secures £250 million for affordable energy installations in UK households’ was originally created and published by Power Technology, a brand of GlobalData.

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