Hometree, the fast-growing residential energy services company, has secured a £250m asset-backed debt facility from Barclays, which will be used to finance over 28,000 residential solar panel systems, batteries and heat pumps across the UK over the next two years.

This further strengthens Hometree’s ambition to decarbonise over one million homes by 2030 and its plans to build Europe’s leading residential energy services business combining hardware installation, financing, repairs, and ongoing maintenance in one platform.

To date in Europe, the residential renewables market has been driven by customers willing to pay cash for solar panels and heat pumps because they are enthusiastic about the technology, affluent and eco-conscious. However, there are mounting barriers preventing more households from installing renewable energy systems, with estimates indicating that up to one-third of UK households can’t afford renewable energy technology and UK government support schemes are waning. The full-scale decarbonisation of UK homes is estimated to cost £250 billion by 2050 according to the Climate Change Committee, which means the availability of easily accessible financing solutions will be key to removing one of the most significant barriers – high upfront cost.

Research from LCP Delta reveals that last year 43% of European solar customers bought a solar PV system on finance, but until now, finance products specific to this market in Europe have been extremely limited. Consumers instead rely on personal loans and credit cards, which aren’t purpose-built for renewables and often include high interest rates. In a market with better product offerings such as the US, the penetration of finance is much higher at up to 85% for solar panels.

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.”