Ovo Energy launches HSBC-backed lending product for solar panels

Ovo said its customers consistently cite upfront costs as the biggest barrier to installing upgrades (Andrew Matthews/PA) - (PA Wire)

Ovo Energy customers will be able to borrow money from HSBC to pay for solar panels and batteries under a scheme designed to boost take-up of low-emission home upgrades.

The energy supplier said the tie-up means its four million customers will not need an account with the bank to access financing to install green energy devices.

Customers will also be able to use HSBC’s lending product Flexipay to cover heat pumps and electric vehicle chargers in future, Ovo said.

We are excited to support consumers through a fully regulated journey aimed at delivering great customer outcomes

Andrew Rankin, HSBC UK

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

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

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

Ovo has teamed up with HSBC in a scheme aimed to promote low-emission home upgrades (Lucy North/PA) (PA Wire)

Consumers can already get grants from the Government or their suppliers to help cover the cost of upgrades for devices like heat pumps.

Ministers recently extended a public sector grant scheme for the products, which 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 tech for their home will be able to access HSBC’s Flexipay lending product even without an HSBC account.

While heat pumps are more expensive to buy than a gas boiler, studies have shown they are cheaper to run (Philip Toscano/PA) (PA Archive)

Andrew Rankin, interim head of unsecured lending at HSBC UK, said the coming decade will bring a “significant acceleration” in people investing to make their homes more energy efficient.

He added that instalment-led lending is “an increasingly popular way for consumers to pay for goods and can be a great budgeting tool, providing the certainty of fixed repayments and a set end date”.

“We are excited to support consumers through a fully regulated journey aimed at delivering great customer outcomes.

“We will enable this through key, select merchant partnerships of which Ovo is the first.”