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Ovo Energy launches solar loan product with support from HSBC

Posted on by L. Dreeye
Ovo Energy launches solar loan product with support from HSBC

Ovo Energy customers will be able to borrow money from HSBC to pay for solar panels and batteries as part of a scheme designed to encourage low-emission home retrofits.

The energy supplier said the tie-up means its four million customers will not need a bank account to access finance to install clean energy devices.

In future, customers will also be able to use HSBC’s Flexipay credit product to cover the costs of heat pumps and electric vehicle chargers, Ovo said.

Energy companies are increasingly exploring financing options with lenders to allow customers to make their homes more efficient.

Ovo said its customers consistently cite upfront costs as the biggest barrier to upgrading.

David Buttress, chief executive of Ovo, said the move would help people “adopt green technologies that will cut their energy bills for good”.

General view of the HSBC sign near the bankGeneral view of the HSBC sign near the bank

Ovo has teamed up with HSBC in a project to promote low-emission home retrofits (Lucy North/PA)

Consumers can already receive grants from the government or their suppliers to help cover the cost of upgrading devices such as heat pumps.

Ministers recently extended the public sector grant scheme for products that are much more expensive to buy and install than gas boilers.

But heat pumps are significantly more energy efficient, and studies have shown they can be cheaper to run.

Ovo said customers looking to install appliances in their home will be able to access HSBC’s Flexipay credit product even without an HSBC account.

British gas boiler controllerBritish gas boiler controller

Although heat pumps are more expensive to buy than a gas boiler, studies have shown that they are cheaper to operate (Philip Toscano/PA)

Andrew Rankin, interim head of unsecured lending at HSBC UK, said the coming decade would bring a “significant acceleration” in people’s investment in making their homes more energy efficient.

He added that installment lending is becoming “an increasingly popular way for consumers to pay for goods and can be an excellent budgeting tool, providing peace of mind of fixed payments and a set end date.”

“We are pleased to support consumers through a fully regulated process aimed at achieving excellent customer outcomes.

“We will deliver this through key selected trade partnerships, of which Ovo is the first.”