Hometree, the residential energy services company, has added a £50m mezzanine facility backed by CPP Investments to the £250m it raised earlier this year from Barclays. This capital will be used to finance solar panels, batteries and heat pumps in 35,000 UK homes. The combined facility from the global institutional investor and a £250m senior asset-backed debt facility raised from Barclays will be used to finance up to 35,000 residential solar panel systems, batteries and heat pumps across the UK over the next two years. This is part of Hometree’s ambition to decarbonise over one million homes by 2030 and its aim to build Europe’s leading residential energy services business, combining hardware installation, financing, repairs and ongoing maintenance in one platform. Demand is rising for renewable energy systems to offset rising energy prices, exacerbated by Ofgem’s confirmation in August that it would increase the energy price cap which will send average annual energy bills higher by £149 from October. Over 180,000 solar panel installations took place last year and the total number of applications to the Boiler Upgrade Scheme (incentivising the move from gas to low-carbon forms of heating) more than doubled in July compared to the year before. However, the high upfront costs of installing solar panels and heat pumps, which can range from £13,600 to £31,500, are unaffordable to most UK households, hindering the transition to net zero. Hometree wants to make renewable energy an affordable option for ordinary homeowners across the country by making low-cost long-term financing available and connecting households with the capital markets. With capital now in place, Hometree is not just focusing on financing its own installations but is also working with companies across the energy supply chain to make it easier for homeowners to choose renewable energy options. It is partnering with renewable installers, energy utilities and hardware manufacturers, and has recently agreed terms with Project Solar, the UK’s largest solar panel installer; So Energy, a large UK energy supplier; and myenergi, a supplier of smart home energy technology. All three partners will make Hometree financing available to their customers – significantly increasing Hometree’s reach. By creating a new securitisation-backed asset class for renewable energy, Hometree has been able to offer zero-deposit leases with low interest rates and longer terms for residential renewable energy technologies. In some cases, homeowners installing solar panels can even ‘pay as they save’, as their savings from using renewable energy exceed their payments. Payment plans are available for up to 25 years for solar panels, batteries and heat pumps, giving customers the option to spread the installation cost across the lifespan of the hardware. Rory Duff, MD of Hometree Finance, said, “We’re delighted that CPP Investments has joined us in our mission to help homeowners decarbonise their homes by installing solar panels and heat pumps. The energy transition will not happen without appropriate finance since very few people have the thousands of pounds needed for the upfront costs. CPP Investments understands the challenge that we are facing and how bridging the gap between the capital markets and the residential sector can accelerate the affordable decarbonisation of UK homes. They join us alongside other leading financial institutions including Barclays, Legal & General and BlackRock, to support our fully integrated approach to installing, financing, repairing and maintaining domestic renewable energy systems.” Ben Mason, Managing Director, European Credit at CPP Investments said: “CPP Investments is an active participant in strategic financing transactions for innovative UK businesses in the energy transition sector. Our significant participation supports business expansion for Hometree while generating appropriate risk-adjusted returns for CPP contributors and beneficiaries.”By Tech.eu Source: Tech.eu Post navigationWROGN raises $9 Mn from Aditya Birla Digital Fashion Splitero Nabs $300M
