Ovo Energy customers will now be able to borrow funds from HSBC to invest in solar panels and batteries, in a pioneering scheme aimed at ramping up the adoption of low-emission home improvements. The energy giant has announced that its four million customers can secure financing for green energy devices without needing an HSBC account.
In the near future, Ovo’s customers will also have the option to finance heat pumps and electric vehicle chargers using HSBC’s Flexipay. This move comes as energy firms increasingly partner with financial institutions to help homeowners enhance their property’s efficiency.
Ovo says the primary hurdle for customers when considering home upgrades is the initial cost. David Buttress, the CEO of Ovo, has expressed that this initiative will empower individuals to “adopt green technologies which will cut energy bills for good”.
While government grants and supplier schemes are already in place to subsidise the cost of eco-friendly installations like heat pumps, Ovo’s collaboration with HSBC offers an additional avenue for consumers to make sustainable choices. Heat pumps, despite their higher purchase and installation costs compared to gas boilers, are lauded for their superior energy efficiency and potential lower operating costs.
Ovo said that even non-HSBC account holders will have access to the Flexipay lending product, paving the way for more accessible green technology in homes.
Andrew Rankin, the acting head of unsecured lending at HSBC UK, has predicted a “significant acceleration” in homeowners investing in energy efficiency over the next decade. He also highlighted that instalment-led lending is becoming an increasingly popular method for consumers to purchase goods, as it provides 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.”
