Consumers want to be more green but the initial cost to install green technology is putting them off from making the change. However, a partnership between OVO, the energy supplier, and European bank, HSBC aims to make green tech more accessible through new financing options.
Although a high proportion (74 per cent) of consumers are interested in installing green tech, an equally high amount (75 per cent) are put off by costs. However, 69 per cent of consumers have expressed that they would be interested in installing the technology if they could spread out payments into manageable chunks over months or even years.
Mark Robson, VP commercial, at OVO said: “Our customers tell us the biggest barrier to making their home more energy efficient is the upfront cost. We’re on a mission to change that. I’m excited to provide our customers with first access to HSBC’s flexible payment product – making home decarbonisation a reality for millions more households. By helping more people afford green technology, we will reduce energy costs in the longer term – and for good – while also helping to cut carbon.”
Breaking down the cost
OVO customers looking to install tech for their home will be able to access HSBC Flexipay, regardless of whether they have an existing HSBC account. If they don’t, they will not have to create one. It will appear as a payment option at the online checkout alongside the usual options to pay by debit or credit card.
For example, if a customer wants to install solar panels into their home, typically this will cost around £9,000. However, with OVO’s partnership with HSBC, payments could be spread out to £236 per month over three years with interest-free credit.
Andy Rankin, interim head of unsecured lending at HSBC UK said: “Paying in instalments is increasingly popular and can be a great budgeting tool, providing the certainty of fixed repayments and a set end date. We are excited to start our journey in Point of Sale finance, offering customers a payment alternative which is fully regulated. For consumers looking to make a large purchase, HSBC Flexipay will enable them to do so with support from a responsible lender they can trust.
“The next five to ten years will see a significant acceleration in investment that supports net zero, including people who want to make their home more energy efficient. That is why we are pleased to partner with OVO, offering their customers who are buying solar panels first access to HSBC FlexiPay.
“Moving into next year we will look to expand HSBC Flexipay further, providing those buying a wide range of products the opportunity to benefit from its flexibility”
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