Octopus Energy, one of the UK’s largest energy firms, is launching a ‘buy now pay later’ scheme for solar panels.
The company, which boasts nearly seven million customers, is partnering with Zopa Bank to make this possible.
The new financing offer aims to make “cheap, clean energy source” more accessible by allowing households to spread the cost over up to 84 monthly payments spanning seven years.
However, unlike typical ‘buy now pay later’ schemes, Octopus will charge a 9.9% annual percentage rate (APR) due to the larger size of the loan. The cost for installing 10 panels and a five kilowatt hour (kWh) battery is approximately £9,200.
This financing option will also be available for those purchasing and installing app-controlled EV chargers, which fast-charge electric cars.
Zopa has assured that its new wave of Buy Now Pay Later (BNPL) products are fully regulated and involve affordability and credit card checks to limit potential debt accumulation.
Dave Farbrother, head of the lender’s retail finance division, believes the deal will “make the switch to energy sustainability more accessible for millions of UK consumers”.
‘Buy Now Pay Later’ schemes have surged in popularity recently, with many online retailers offering them to their customers, reports Birmingham Live.
BNPL products offer the option to stagger or defer payment for goods or services. However, they should be used with caution.
Understanding how BNPL works is crucial in making an informed decision before signing up.
It’s worth noting that Buy Now Pay Later services are a type of credit and can negatively impact your credit score if the debt isn’t cleared according to the agreement.
