Cut cost of loans for solar panels on UK homes, ministers urged
Report says ‘solar bonds’ could fund wider access to clean energy, reducing household bills Solar panels could be cheaper for people on lower incomes if the government stepped in to reduce the cost of loans, a report argues. Solar panel installations can save households hundreds of pounds a year in energy bills, but at an initial cost of about £5,000 to £10,000 they are beyond the reach of many…
A report suggests the UK government should introduce "solar bonds" to make solar panel installations more affordable for low-income households. While solar panels can save money on energy bills, the high upfront cost of £5,000 to £10,000 is a barrier for many potential owners. Commercial lenders offer loans to cover the cost, but the high interest rates negate most of the savings for the first decade.
The cost of gas is expected to rise, exacerbating winter hardships, with energy price caps likely to increase by 4% in October. The thinktank Common Wealth proposes providing universal access to solar panels through "solar bonds," which would be retail investment products funded by savers. Savers would earn interest payments, while households installing panels would benefit from lower interest rates, around half of the current market rates.
The loans, repaid over 25 years, could be added to households' energy bills through the standing charge and remain with the property even if sold. Brown estimates the scheme could reduce household energy bills by about £250 per year. People with spare cash could also invest in "solar gilts" or "solar bonds," receiving about 4% to 5% interest to finance the purchase and installation of panels for others.
This approach, Brown argues, would make solar power more accessible and affordable for all UK households, driving down installation costs and increasing energy independence.
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