Hometree to offer £250m in loans and leases for solar panels and batteries
Hometree to offer £250m in loans and leases for solar panels and batteries
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Updated on 20 June 2024
Barclays agrees deal for 28,000 solar panels, batteries and heat pumps
The agreement is a UK first
Hometree will offer zero-deposit leases and low interest loans
The deal is a first for the UK green technology market
Hometree, a residential energy services company, has secured a £250m asset-backed debt facility from Barclays to finance more than 28,000 residential solar panel systems, batteries and heat pumps in the UK over the next two years.
This deal means the company will offer zero-deposit leases and loans with low interest rates and terms of up to 25 years, available on solar panels and battery systems, with plans to expand to heat pumps soon.
In addition to removing financial barriers to installing green technology, the financial options will help the company meet its ambition to decarbonise more than 1 million homes by 2030 through hardware installation, financing, repairs and ongoing maintenance.
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 because they want more certainty and lower energy bills.”
Phelan described the upfront installation costs of solar panels and heat pumps as “unaffordable for most people” and help from the financial industry as “fundamental to accelerating” residential decarbonisation.
The move is part of the UK’s first residential renewable securitisation, which has become commonplace in the US for residential renewable loans and leases since SolarCity, founded by Elon Musk, carried out the first solar securitisation in 2013.
Since then, according to Hometree, the US has boasted an aggregate solar-ABS issuance volume of more than $20bn.
Securitisation has grown as a means of financing renewable energy installation as banks and capital market investors are primarily exposed to associated risks with renewable loans and leases, allowing them to focus on the risk of a homeowner defaulting, not risk to the installer.
Gordon Beck, head of European Corporate & Sustainable Securitisation at Barclays, said: “Supporting fast-growing renewable energy clients like Hometree is a key part of Barclays’ strategy to facilitate $1 trillion in green and sustainable finance by 2030.
“This innovative financial structure is the first of its kind in the UK and will enable our client Hometree to offer a more affordable way for UK homeowners to install solar panels and other renewable technologies. Retrofitting UK homes is an important part of making progress on the path to net zero, and we’re excited to play a key role in that.”
Written by
Tamara BirchSenior Writer
Tamara is a London-based journalist and has written about environmental topics for more than four years. This includes advising small business owners on cost-effective ways, like solar panels and energy-efficient products, to help them become more sustainable.
She has used her journalist and research skills to become highly knowledgeable on sustainable initiatives, issues, and solutions to help consumers do their bit for the environment - all while reducing monthly costs.
In addition to adopting sustainable practices in her personal life, Tamara has worked in the retail B2B space to help independent retailers think about their environmental choices and how they can help improve their business. She now uses this knowledge to help consumers do the same.
Her passion for sustainability and eco-friendly solutions stems from a long obsession with nature and animals and ensuring they feel looked after. In her free time, Tamara enjoys reading fantasy novels, visiting the gym, and going on long walks in new areas.
You can get in touch with Tamara via email at tamara.birch@mvfglobal.com.
Max joined The Eco Experts as content manager in February 2024. He has written about sustainability issues across numerous industries, including maritime, supply chain, finance, mining, and retail. He has also written extensively for consumer titles like City AM, The Morning Star, and The Daily Express.
In 2020, he covered in detail the International Maritime Organisation’s (IMO) legislation on sulphur emissions and its effects on the global container shipping market as online editor of Port Technology International.
He also explored the initiatives major container ports and terminals have launched in order to ship vital goods across the world without polluting the environment.
Since then, he has reported heavily on the impact made by environmental, social, and governance (ESG) practices on the supply chain of minerals, with a particular focus on rare earth mining in Africa.
As part of this, in 2022 Max visited mines and ports in Angola to hone in on the challenges being faced by one of the world’s biggest producers of rare earth minerals.
His most recent sustainability-related work came much closer to home, as he investigated the eco-challenges faced by independent retailers in the UK, specifically looking at how they can cut emissions and continue to thrive.
Max lives in South London and is an avid reader of books on modern history and ghost stories. He has also recently learned to play the game Mahjong and takes every opportunity to do so. He is also yet to find a sport he doesn’t enjoy watching.
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