In a significant move towards enhancing renewable energy solutions, London-based Hometree has announced a new £50 million mezzanine facility, supported by CPPIB Credit Investments, a subsidiary of the Canada Pension Plan Investment Board. This initiative underscores Hometree’s commitment to boosting residential solar energy systems in the UK. The company aims to finance renewable installations like solar panels and heat pumps for approximately 35,000 homes, aligning with its broader mission to decarbonize over one million homes by 2030. With such investments, Hometree is poised to play a pivotal role in the UK’s energy transition, making renewable energy more accessible to homeowners.
Four months prior, Hometree had already secured a £250 million asset-backed debt facility from Barclays, indicating its robust financial strategy to support renewable energy projects. The collaboration with CPP Investments marks a continuation of this strategic funding approach. This partnership is a testament to the growing trend of financial institutions supporting the energy transition in the UK. Hometree’s integrated strategy includes hardware installation, financing, and maintenance, and this aligns with practices seen in Germany and the US, where CPP Investments has been actively involved in renewable initiatives.
What is Hometree’s Approach to Renewable Energy?
Hometree, founded by Simon Phelan, aims to facilitate the transition to net zero homes by offering comprehensive residential energy services. Through its Home Services, Energy Services, and Financial Services divisions, the company empowers homeowners to manage and finance renewable energy solutions. This strategy enables homeowners to operate their homes sustainably. By collaborating with energy suppliers and hardware manufacturers, Hometree is enhancing the accessibility of renewable options for consumers. The company has established partnerships with key industry players like Project Solar, So Energy, and myenergi to broaden its market reach.
What Financial Solutions Does Hometree Offer?
Homeowners can now access renewable energy options through innovative financing solutions provided by Hometree. The company offers zero-deposit leases with favorable terms, allowing customers to adopt solar energy with manageable financial commitments. This “pay as they save” model ensures that energy savings can surpass installment payments. With payment plans extending up to 25 years, customers have the flexibility to pay over an extended period. This approach reflects Hometree’s commitment to making renewable energy financially accessible and sustainable for a broad audience.
Rory Duff, Managing Director of Hometree Finance, emphasizes the importance of financial support in facilitating the installation of solar panels and heat pumps.
“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.”
Duff highlights the strategic partnerships with prominent financial institutions like Barclays, Legal & General, and BlackRock, further strengthening Hometree’s integrated approach to renewable energy.
CPP Investments, a major player in strategic financing, sees this partnership as a way to contribute to the energy transition while ensuring returns for its contributors. Ben Mason, Managing Director of European Credit at CPP Investments, notes the organization’s role in supporting innovative UK businesses in the energy sector.
“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.”
This collaboration illustrates the growing synergy between financial institutions and energy service companies in driving sustainable solutions.
Hometree’s strategy of combining installation, financing, and ongoing maintenance of renewable systems positions it as a key player in the energy transition sector. By addressing financial barriers and facilitating access to renewable technologies, Hometree is contributing to the UK’s decarbonization efforts. With a robust support system from financial giants and partnerships with industry leaders, the company is set to make significant strides in promoting sustainable homeownership. The focus on making renewable energy systems affordable is essential for widespread adoption and a sustainable energy future.
