Barclays announces a fresh collaboration to speed up eco-friendly home renovations
Hometree and Barclays Partner to Launch 'Pay as You Save' Programme for Solar Panels and Heat Pumps
In a move aimed at making clean energy more accessible and affordable for homeowners, Barclays and Hometree have announced a new partnership to develop and scale flexible finance solutions for green energy upgrades. The partnership has created a 'pay as you save' programme, offering zero-deposit financing for solar panels, battery storage systems, and heat pumps.
Matt Boyes, Co-MD of Hometree Finance, explained that the UK has some of the most expensive homes to heat and power, and the new partnership with Barclays will make it easy and affordable to finance green energy upgrades. He added that the programme is designed to remove barriers for homeowners to invest in renewable technologies due to high upfront costs.
The 'pay as you save' programme offers an all-inclusive monthly payment plan starting from around £75 per month. This plan covers equipment, installation, system monitoring, maintenance, and unlimited repairs for the duration of the agreement, typically 5 to 25 years. Customers can spread the cost while benefiting from energy savings.
Key features of this programme include no upfront cost or deposit required, monthly payments that cover ongoing system maintenance, monitoring, and repairs with no additional callout fees or excess charges, equipment failure replacement during the plan term at no extra cost, a secure application process that takes about two minutes and does not impact credit scores, and the option for customers to end their plan anytime by paying the settlement amount stated in their agreement without penalties.
Monthly payments are subject to an annual inflationary increase of 2.5%, and missing payments can impact creditworthiness. Homeowners can take out loans to fund the installation of these energy systems.
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. However, the 'pay as you save' programme allows homeowners to potentially save more money than their monthly payments from day one due to reduced energy bills.
Simon Phelan, CEO and founder of Hometree, stated that the new programme aims to remove barriers for homeowners to invest in renewable technologies due to high upfront costs. He added that 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.
According to new figures from LCP Delta, 28% of solar panel customers used high-interest personal loans or credit cards to fund the installation. The partnership between Barclays and Hometree is a step forward in addressing this issue and making clean energy more affordable for homeowners.
[1] Hometree's 'pay as you save' programme: https://www.hometree.co.uk/pay-as-you-save [2] Barclays and Hometree partnership: https://www.barclays.co.uk/news/barclays-partners-with-hometree-to-make-it-easier-for-homeowners-to-go-green/ [3] Hometree's mission to accelerate the UK's transition to net zero: https://www.hometree.co.uk/mission [4] Hometree's 'pay as you save' programme explained: https://www.hometree.co.uk/blog/what-is-pay-as-you-save-and-how-does-it-work
- With the 'pay as you save' programme created by Hometree and Barclays, environmental-science initiatives like solar panel and heat pump installations can now be financed through affordable, flexible payment plans, making sustainability in the realm of both science and business more accessible.
- As Barclays and Hometree join forces to combat climate-change, they are offering zero-deposit financing solutions and addressing the issue of high-interest loans for renewable technology investments in environmental-science, which will encourage businesses and homeowners to invest more in the future of cleaner energy.
