London-based Hometree, a residential energy services company, has raised £250 million of debt financing from Barclays, which recently backed WealthOS and Liberis.
Ambitious plan ahead
This deal will finance the installation of solar panels, battery storage systems and heat pumps through a range of industry-leading lease and loan products.
The company is aiming to install over 28,000 renewable energy systems in the next two years.
What challenge does it tackle?
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 this 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.
Hometree plays a major role here with its finance products designed to make renewable technologies accessible and affordable for more homeowners.
Green energy transition made affordable
Simon Phelan with a private equity background and a wealth of expertise in engineering and finance founded Hometree to help people look after their homes and accelerate the transition to net-zero.
The company offers zero-deposit leases and loans with low interest rates and long terms for solar panels and battery systems, with heat pump options coming during the summer.
The payment plans are available for up to 25 years for solar panels, giving customers the option to spread the installation cost across the lifespan of the hardware. Customers will benefit from lower monthly payments and in many cases, they can “pay as they save”, making a net saving with the forecasted energy savings exceeding their payments.
Like how low-cost car finance galvanised the new motor vehicle sector, Hometree believes affordable finance for home energy systems will play a crucial role in helping homeowners make the transition to renewable energy.
Hometree’s leases include an ongoing service and maintenance guarantee as standard, bringing added peace of mind and certainty around costs.
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.”
What do we think about Hometree?
The startup is revolutionising access to green energy with its financing solutions. By offering zero-deposit leases and long-term, low-interest loans for solar panels and heat pumps, the company makes renewable energy systems affordable for more households. This approach supports the transition to net-zero, alleviates energy cost pressures, and ensures service and maintenance for customers.
