UK startup Hometree raises €60M mezzanine facility - Silicon Canals

Home » News

By

Vigneshwar Ravichandran

By

Vigneshwar Ravichandran

|

October 17, 2024

|

Last update:

October 17, 2024

London-based Hometree, a residential energy services company, announced on Thursday that it has raised a £50M (approximately €60M) mezzanine facility backed by CPPIB Credit Investments., a wholly-owned subsidiary of Canada Pension Plan Investment Board.

The announcement comes four months after raising £250M (approximately €300M) asset-backed debt facility from Barclays.

The UK company will use the funding to finance up to 35,000 residential solar panel systems, batteries, and heat pumps across the UK over the next two years.

Hometree plans to make the first UK residential renewables public market transaction in the coming years.

This is part of their strategy to meet the growing demand for green financing solutions. CPP Investments, with its expertise in financing renewable innovation in Germany and the US, is partnering with them.

The company is on a mission to decarbonise over one million homes by 2030, and it plans to build Europe’s residential energy services business combining hardware installation, financing, repairs, and ongoing maintenance in one platform.

Founded by Simon Phelan, Hometree is a residential energy services company that exists to accelerate the transition to net zero homes.

Through three distinct divisions – Home Services, Energy Services, and Financial Services – Hometree Group now caters to the comprehensive needs of sustainable homeownership.

The company helps homeowners install, manage, and finance renewable energy solutions, enabling them to run their homes in a carbon-neutral way.

With capital now in place, Hometree is not just focusing on financing its own installations but is also working with companies across the energy supply chain to make it easier for homeowners to choose renewable energy options.

It is partnering with renewable installers, energy utilities, and hardware manufacturers, and has recently agreed terms with Project Solar, the UK’s largest solar panel installer; So Energy, a large UK energy supplier; and myenergi, a supplier of smart home energy technology.

All three partners will make Hometree financing available to their customers – significantly increasing Hometree’s reach.

Hometree has introduced a new way to finance renewable energy options for residential properties. They offer zero-deposit leases with low interest rates and longer terms.

Homeowners installing solar panels can benefit from a “pay as they save” model, where their energy savings exceed their payments.

Payment plans are available for up to 25 years, allowing customers to spread the installation cost over time.

Rory Duff, MD of Hometree Finance, says, “We’re delighted that CPP Investments has joined us in our mission to help homeowners decarbonise their homes by installing solar panels and heat pumps. The energy transition will not happen without appropriate finance since very few people have the thousands of pounds needed for the upfront costs.”

“CPP Investments understands the challenge that we are facing and how bridging the gap between the capital markets and the residential sector can accelerate the affordable decarbonisation of UK homes. They join us alongside other leading financial institutions, including Barclays, Legal & General, and BlackRock, to support our fully integrated approach to installing, financing, repairing, and maintaining domestic renewable energy systems,” adds Duff.

CPP Investments is a professional investment management organization with a vital purpose: to help provide a foundation on which Canadians build financial security in retirement.

Ben Mason, Managing Director, European Credit at CPP Investments says, “CPP Investments is an active participant in strategic financing transactions for innovative UK businesses in the energy transition sector. Our significant participation supports business expansion for Hometree while generating appropriate risk-adjusted returns for CPP contributors and beneficiaries.”

Topics:

Follow us:

Vigneshwar has been a News Reporter at Silicon Canals since 2018. A seasoned technology journalist with almost a decade of experience, he covers the European startup ecosystem, from AI and Web3 to clean energy and health tech. Previously, he was a content producer and consumer product reviewer for leading Indian digital media, including NDTV, GizBot, and FoneArena. He graduated with a Bachelor's degree in Electronics and Instrumentation in Chennai and a Diploma in Broadcasting Journalism in New Delhi.

October

No Events

November

No Events

01

02

03

04

05

More