Residential energy services company Hometree has secured a £250 million asset-backed debt facility from Barclays to finance over 28,000 residential solar PV systems, battery storage and heat pumps across the UK over the next two years.
The partnership will support Hometree in achieving its 2030 target to decarbonise over one million homes by 2030. According to the organisation, consumers looking to install renewable energy assets face challenges in the UK and across Europe.
Research by Nottingham Trent University in the UK indicates that up to one-third of UK households can’t afford renewable energy technology and that UK government support schemes are waning.
Across the Channel, LCP Delta revealed that last year, 43% of European solar customers bought a solar PV system on finance. However, finance products specific to this market in Europe have been extremely limited until now. Instead, consumers rely on personal loans and credit cards to finance installations, often not purpose-built for renewables and thus with high interest rates.
It is worth noting that Hometree Finance is already offering leases on solar and batteries and will begin offering finance for heat pumps later this year whilst also releasing an unsecured loan product targeted for Q3 2024. The company also expects to undertake the first UK residential renewables public market transaction within two years.
Simon Phelan, founder and CEO of Hometree, said: “Homeowners across the UK want to decarbonise their homes not only because it’s good for the planet but also because they want more certainty and lower energy bills. However, the upfront installation costs are unaffordable for most people, despite the benefits solar panels, batteries, and heat pumps can bring. We are excited to solve this at Hometree.
“The participation of the financial industry is fundamental to accelerating the enormous infrastructure upgrade our homes need to reduce their carbon emissions, and this transaction enables us to offer our customers a unique solution that otherwise would not be available in the UK market.”
This article first appeared on our sister publication Current±.
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