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.
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”.
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.
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.”
