News

Hometree secures £250m to finance green home upgrades

Hometree, the residential energy services company, has raised £250m of debt financing from Barclays to help homeowners finance the installation of solar panels, battery storage systems and heat pumps through a range of industry-leading lease and loan products. 

Image features four members of the Hometree team sitting.

Zero-deposit payment options tailored for the domestic renewable energy market, offering system monitoring and repairs to support homeowners in transitioning to green power. The pay as you save plan allows many homeowners to offset their monthly payments with the savings gained from reduced energy bills from the outset.

Growing demand to go green 

Although energy bills have fallen since their peak in April and October 2022, they are still 59% higher than winter 2021/22, continuing to put pressure on already stretched household budgets as the Cost of Living Crisis continues. As a result, consumer interest in renewable energy systems is at an all-time high with over 220,000 heat pumps & 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 respectively. Last year, 28% of solar panel customers used high-interest personal loans or credit cards to fund the installation according to LCP Delta, which risks putting further strain on household finances at a time when interest rates and inflation remain high.

Focusing on removing barriers

Simon Phelan, founder and CEO 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, said: “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: Hometree