Thinktanks propose low-cost loans for home solar panels

financeJul 7, 202613119

The New Economics Foundation and the Finance Innovation Lab propose a Bank of England, backed low-cost loan scheme to help households install solar panels and batteries, which they say could reach about 8 million UK homes. The thinktanks estimate rooftop systems cost about £6,000 up front but that loans at about 2% interest would let households save about £250 a year on average, with typical repayments around £45 a month offset by bill savings of about £66. The loans would run roughly 15 years, after which households would continue to benefit from remaining panel life, and would be funded by giving commercial banks access to Bank of England funds on condition they lend for solar. Cooperation with energy companies could route repayments through bills, though banks could collect repayments directly if needed. Jesse Griffiths of the Finance Innovation Lab said the approach would deliver cheap loans without direct government cost and could free up about £15bn currently budgeted for the Warm Homes Plan for other uses. The report points to similar successful programmes in Japan and China; adopting the proposal requires government approval and Bank of England participation to proceed.

The Guardian

@theguardian.com

Low-cost loans for solar panels could save households hundreds on bills – thinktanks

9445d ago

Saint Palermo3

Why should individuals have to go into debt to get rooftop solar when meanwhile the U.S. continues to heavily subsidize the fossil fuel industries? The U.S. needs to stop fossil fuel subsides and start subsidizing solar energy.

martinput1

The issue for many householder, is lack of capital and reluctance to take on debt. I have a suitable roof, and would allow an agency to rent it. In return, just a lower electricity bill. Such a scheme would open up many more roofs to development.

John1

Best thing i ever bought solar plus battery but cutting export rates is a right kick in the knackers.

Quoting this

DocGaby49

Günstige Kredite für Solaranlagen könnten Haushalten Hunderte bei den Stromrechnungen einsparen – Thinktanks

Ann Kempster4

We already have this in Wales? Also for windows/insulation/heat pumps etc. 0% loans. Maybe it's just England that needs to catch up. 🤷‍♀️

Nick Pettigrew3

They shouldn't be spending hundreds on tanks in the first place.

Danny Sriskandarajah

@dhnnjyn.bsky.social

This is the sort of sensible, cost-effective approach that we need to drive down household energy costs and drive the green transition. Was great working with @thefinancelab.bsky.social on this www.theguardian.com/environment/...

1045d ago

Bettina Struff #Woke #FBPE #FBPR #NHS #RejoinEU

@bettinastruff.bsky.social

www.theguardian.com/environment/... @josiahmortimer.bsky.social @georgemonbiot.bsky.social FYI @zackpolanski.bsky.social @carladenyer.bsky.social @rachelmillward.bsky.social @rozsavage.bsky.social @eddavey.libdems.org.uk can the Greens and LibDems press the government to go ahead with this?

545d ago

Clive Durdle

@evilceldrud.bsky.social

May I express confusion? Why treat energy as an individual household problem? Where are the local neighbourhood energy and mobility coops that forensically analyse all of a neighbourhood's needs, propose joined up solutions with appropriate finance, skills, etc? www.theguardian.com/environment/...

145d ago

Tom Holbrook

@thomholbrook.bsky.social

This is cool – what if the Bank of England didnt just bail out banks and financial institutions, but used its might to change the weather? www.theguardian.com/environment/...

245d ago

Andrew Bowden 🐀

@andrewbowden.me.uk

I've been thinking something like this should happen for years. It's such an obvious thing to do, costs the government next to nothing. I'm amazed it's not happened. You could easily do it with heat pumps too. www.theguardian.com/environment/...

245d ago

Rob

@robdickinson.bsky.social

www.rnz.co.nz/news/politic... No it was home solar funded via loans through rates just like this is (partly)

244d ago

New Economics Foundation

@neweconomics.bsky.social

If the government worked with the Bank of England to create a nationwide scheme to rollout out home solar power, backed by low-interest loans at 2%, the average eligible household could save £250 a year, even while paying back their loan. Read more: neweconomics.org/2026/07/fina... 3/5

44d ago

Donnachadh McCarthy

@donnachadhmc.bsky.social

This is a no brainer. Low cost loans from BofE for solar/batteries. Payments via bills. 2 million homes already have solar. Rest must have it asap. 2 million EVs also now on roads. 30% of new car sales. We need 100% asap. Every gas boiler & petrol car is destroying our climate.

245d ago

Peter Bowden 🇬🇧 (It's A.I. not AI.)

@b31bowden.bsky.social

Why limit it to solar panels? Allow energy efficiency loans for Insulation, solar panels, heat pumps, Air Conditioning, EV charge points. Cost secured against the property. Saves the Government doing it, plus improves the housing stock. www.theguardian.com/environment/...

145d ago

New Zealand Herald (Unofficial)

@nzherald.nzcow.com

📢 Afternoon Headlines | Labour promises low-interest solar loans; rockfall and floodwaters keep Kaikōura closed for close to 24 hours. | Wednesday, July 8, 2026

44d ago

BusinessDesk (Unofficial)

@businessdesk.nzcow.com

📢 Labour has matched and extended National’s solar finance policy, promising subsidies for low- and middle-income households as well as low-interest loans f...

44d ago

alexander solsten

@solsten.bsky.social

That sounds like a regulatory problem to me, not an actual issue with integrated solar. Here it is all done through BC/Quebec Hydro etc and generally in the form of advantageous loans that pay for themselves after installation

45d ago

1 source

theguardian.comLow-cost loans for solar panels could save households hundreds on bills – thinktanks

Thinktanks propose low-cost loans for home solar panelsfinance

Thinktanks propose low-cost loans for home solar panels

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