Octopus Energy will offer flexible buy now, pay later (BNPL) products to its UK customers following a partnership with digital bank Zopa.
Through the deal, Zopa – which hit annual profitability for the first time last month – will finance the costs of acquiring and installing Octopus solar panels. These payments can be spread across as many as 84 instalments over seven years.
The bank said that while British consumers are encouraged to explore renewable energy options, the major political parties have yet to facilitate this with meaningful green support.
“The biggest power plant we’ve got is the sun – so making use of it by creating mini power generators on our roofs is an absolute no-brainer,” said Octopus Energy commercial director Jessica Wilkinson.
“We’ve already installed 3,000 solar panels on UK homes, and we’re pleased to enable even more people to benefit from this cheap, clean energy source through this new financing solution with Zopa Bank.”
The deal will also allow customers to use BNPL financing to install app-controlled EV chargers.
“The energy security and prosperity of future generations are dependent on greening our economy and that requires large-scale investments,” said Dave Farbrother, CEO of Zopa’s BNPL and retail finance division.
“Together we are extending the reach of green energy with financial solutions that put customers first and are fully regulated, offering peace of mind.”
Zopa entered the BNPL space in August 2023. The bank said its BNPL services are fully regulated and affordability and credit checks will be made to avoid the accumulation of unmanageable debt.
Consumer groups have previously raised concerns over the use of BNPL products to cover essential services such as energy, particularly amid sky-high costs. Zopa told UKTN the payment product would only be available for solar panels and EV chargers.
Octopus Energy, one of the UK’s largest energy providers, was this month valued at $9bn (£7.16bn) following an increased stake in the company being taken by existing shareholders.
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