Zopa Bank enters the £23 billion renewable energy market

Zopa Bank has entered the £23 billion renewable energy market with Octopus and regulated BNPL services for customers across the UK.

Following this announcement, Zopa Bank has entered the £23 billion UK renewable energy market, which is expected to make its suite of fully integrated Buy Now, Pay Later (BNPL) and retail financial products available to Octopus Energy customers and clients across the UK.

In addition, both companies will focus on meeting the needs, preferences and demands of users in an ever-evolving market, while prioritizing compliance with local industry regulatory and legal requirements.

More information in the announcement

As part of the transaction, Zopa is expected to finance the purchase and installation of Octopus solar panels for the UK energy company’s customers. Additionally, the partnership will also enable funding for app-controlled electric vehicle charges that will be installed by Octopus engineers to quickly charge customers’ and users’ electric vehicles.

In January 2024, there were over 53,600 public charging points available across the UK region, an increase of 45% since the start of 2023. In addition, the Government is focusing on delivering 300,000 charging points by 2030 to match the growing demand for greener finances.

The partnership will allow users to reduce their electricity costs by up to 90% by switching to solar energy, and Zopa Bank is also expected to enable them to spread the upfront costs over 24-84 months. At the same time, Zopa Bank and Octopus Energy will expand the reach of green energy with financing solutions that put customers first and are fully regulated and secure.

Zopa Bank launched its regulated BNPL and retail finance products in August 2023, aiming to advance BNPL 2.0, as well as the ability to underwrite longer and larger loans in a way that meets today’s regulatory requirements and evolving customer needs. This process included conducting credit checks and affordability tests for all customers, as well as sharing data with credit reporting agencies (CRAs) to avoid the accumulation of unmanageable debt and borrowing cycles.

The UK Regional Energy and Clean Technology Association estimates that the total value of the renewable and clean technology sector could reach £46 billion by 2035.