Hometree to offer £250m in loans and leases for solar panels and batteries Written by Tamara Birch Reviewed by Maximilian Schwerdtfeger Updated on 20 June 2024 Barclays agrees deal for 28,000 solar panels, batteries and heat pumpsThe agreement is a UK firstHometree will offer zero-deposit leases and low interest loans The deal is a first for the UK green technology marketHometree, 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 Birch Senior Writer Tamara 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. Reviewed by: Maximilian Schwerdtfeger Content Manager 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 for City AM, The Morning Star and the Daily Express.