Barclays confirms new partnership to accelerate green home improvements
The leading national bank have joined forces with Hometree who have raised £250m of debt financing to help homeowners install solar panels, battery storage systems and heat humps into their properties.
Through patterning with Barclays, Hometree – the leading residential energy services company – has created the ‘pay as you save’ programme, which is designed to help homeowners sustainably upgrade their home. Through the scheme, people can take out loans to fund the installation of solar panels, battery storage systems and heat pumps.
The idea of a loan in the current climate is frightening to say the least, with interest rates being the highest since 2008. However, Hometree’s scheme offers zero-deposit payment options that are designed for the domestic renewable energy market.
In addition, various 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.
Arguably the introduction of this scheme couldn’t have come at a better time. Although energy bills have fallen since their peak in April and October 2022, research shows they are still 59% higher than winter 2021/2022. As a result, consumer interest in renewable energy systems is at an all-time high with over 220,000 heat pumps and solar installations taking place in UK homes in 2023, a record-breaking 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 £12,700 to £31,500 for air source and ground source heat pumps. According to new figures from LCP Delta, 28% of solar panel customers used high-interest personal loans or credit cards to fund the installation, which risks adding further strain on household budgets.
Commenting on the news of the new programme, Simon Phelan, CEO and founder 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 take control of their energy bills and carbon emissions. We’re delighted to be working with Barclays to help us develop and scale flexible finance solutions with all-inclusive cover built-in, to enable homeowners to make the switch to clean, green energy with confidence.’
Matt Boyes, Co-MD of Hometree Finance, added: ‘The UK has some of the world’s most expensive homes to heat and power and it is costing homeowners dearly. Yet until now, there hasn’t been an easy, affordable way to finance the green energy upgrades that will benefit homeowners’ wallets and the planet. This new partnership with Barclays means it will be just as easy to install solar panels or a heat pump as it is to lease or buy a new car on finance.’
Image: Martin Adams
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