According to News, Hometree, which has Legal & General (L&G) as one of its investors, is set to declare this week that it has reached an agreement with a Canada Pension Plan Investment Board (CPPIB) subsidiary to enter into a mezzanine debt facility.
The new financing facility will be used to fund up to 35,000 household solar panel systems, batteries, and heat pumps. It will supplement a £250 million loan from Barclays that Hometree obtained earlier this year.
The announcement of Hometree’s increased financing capacity coincides with the implementation of a new increase in the home energy price cap.
The change will result in an average annual rise of £149 in energy prices.
“We are thrilled that CPP Investments has partnered with us to assist homeowners in decarbonizing their homes through the installation of heat pumps and solar panels,” stated Rory Duff, managing director of Hometree Finance.
Since few people have the thousands of pounds required for the upfront costs, the energy shift cannot occur without adequate financing.
Simon Phelan started Hometree in 2016, with the goal of decarbonizing over one million houses by the end of the decade.
