Renewable energy supplier Good Energy has launched a solar panel finance scheme in partnership with Zopa Bank. The scheme allows homeowners to pay a 25 per cent deposit and spread the remaining cost over five, seven, eight, or 10 years.

Borrowing is offered at a 9.9 per cent APR representative, subject to status and affordability. The financing is available for solar panel installations and combined solar and battery systems. Under the agreement, customers own their solar panels from the point of installation, while the finance agreement is made directly with Zopa Bank.

Good Energy stated the scheme aims to address upfront costs, which its research identified as a barrier. In April, research involving 2,009 UK adults found that 26 per cent of respondents said lower upfront costs or the ability to spread payments would make them more likely to install solar panels.

“For many customers, the challenge isn't whether they want solar; it's finding a way to manage the upfront cost. By partnering with Zopa, we're making it easier for more homeowners to spread the cost – which will open up an opportunity for thousands more to start benefiting from home-grown renewable energy.”

The launch coincides with expectations from energy consultancy Cornwall Insight that Ofgem's energy price cap will rise by approximately 4 per cent from October. For a dual-fuel household paying by direct debit, this would increase the annual figure from £1,663 to £1,729. Ofgem is expected to announce the final price cap for October to December by 26 August.

Spreading payments can increase the total cost of installation. For a typical 10-panel system with a cash price of £6,380, a customer paying a £1,595 deposit and borrowing £4,785 over 10 years would make monthly payments of £61.86. The total amount paid would be £9,019, including £2,639 in interest.