The collaboration aims to encourage broader adoption of low-carbon, energy-efficient solutions and address financial barriers hindering access to green energy.
Recognising that the upfront expenses associated with adopting new technologies such as such as heat pumps, solar PV, or battery storage, may be a barrier for some homeowners, the initiative will enable them to add the amount to their mortgage and spread the costs over a longer period. They will be rewarded with a lower interest rate on their mortgage once the improvements have been completed.
The project is supported by the Department for Energy Security & Net Zero through its Net Zero Innovation Portfolio (NZIP), as part of the department’s Green Home Finance Accelerator (GHFA). GHFA was established to fund innovative green finance products, promoting the uptake of home energy efficiency and low-carbon heating measures.
Recent research conducted during the 2023 GHFA Discovery Phase by the consortium revealed that the largest barrier to getting low carbon technologies is cost, followed by a lack of financial support available. Many don’t know where to start making energy efficient improvements and acknowledge that they would need some form of finance to help them afford the upgrades required in their home.
To ensure the best value for their money, the initiative will deliver a complete wraparound service through the Heatio Flexx, Home Energy Management Solution, which provides homeowners with tailored insights on what home improvements they can make through to the specification and installation of technologies.
Heatio Flexx uses a data-driven approach to deliver an accurate energy profile of the property including energy usage patterns and building characteristics, and generates a bespoke roadmap of improvements, supporting homeowners with ways in which they can achieve energy efficiency.
It will provide accurate sizing and specification of low-carbon technologies to deliver consumer confidence in reducing energy costs, maximising energy efficiency and lowering their carbon footprint. Validation of the installation of these new low carbon technologies will also be provided digitally via the Heatio Flexx platform.
Thomas Farquhar, co-founder of Heatio, emphasised the significance of incentivising energy-efficient home improvements. He said: “Our initiative with Perenna and Energy Systems Catapult is a bold step towards making energy-efficient upgrades not only financially accessible but also rewarding. It’s important that we convey the idea that decarbonisation is not only achievable but beneficial. By making the transition to alternative heat and energy sources more seamless and appealing to homeowners we can drive forward the enthusiasm of homeowners to participate.
“The integration of the Heatio Flexx Home Energy Management Solution ensures a personalised and data-driven approach, providing homeowners with the tools and insights needed to embark on a journey towards a more efficient home. Supporting consumers with accurate information, based on actual in-home data, simplifying the process and giving accuracy and confidence for consumers will remove barriers to adoption. Driving positive change in the residential energy landscape, one home at a time.”
Arjan Verbeek, chief executive of Perenna Bank said: “We are delighted to be part of the Green Home Finance Accelerator and have the opportunity to work with Heatio and Energy Systems Catapult to pilot this innovative mortgage product that combines long term security with improvements in home energy efficiency.