A start-up supported by former Conservative Party treasurer Lord (Michael) Spencer and ex-Marks & Spencer CEO Lord (Stuart) Rose is securing tens of millions in debt financing to provide solar panel installations in residences using an innovative and cost-effective “subscription” model.

Sunsave presents itself as a comprehensive solution for installing, maintaining, and financing solar panels and batteries, akin to a mobile phone service plan.

Rather than incurring the £10,000 installation cost upfront, customers can opt for a 20-year Sunsave loan at an APR of 5.9%, allowing them to distribute the expense over time. This agreement also encompasses a servicing and battery replacement package for the duration of the loan.

The bank financing currently being negotiated will facilitate the onboarding of 4,000 new customers.

Recently, Sunsave entered into a partnership with Centrica, through which its British Gas branch will promote the service to its two million customers utilizing the Hive smart system. This collaboration is expected to generate a surge in customer inquiries.

Sunsave commenced the installation of its solar panel systems back in 2022, but it was only able to unveil its 20-year finance package in January after a lengthy 15-month wait for approval from the Financial Conduct Authority.

“The waiting period was extraordinarily challenging,” reflected Sunsave co-founder Ben Graves. “Now that we’ve navigated it, we feel confident about the hurdles that others will face if they attempt to replicate our model.”

Graves noted that typically, customers see an immediate drop in their energy bills post-installation, even after accounting for loan repayments.

“The government aims for households to achieve net-zero emissions by 2035, but the initial costs are prohibitively high for most,” Graves, formerly with a private equity firm, explained. “Given the financial constraints of the government, it falls to the private sector to bridge this gap.”

Spencer and Rose have participated in two financing rounds for Sunsave, which has raised a total of £11 million so far.

Graves also mentioned that the company is currently testing the installation of electric vehicle charging points in homes and has plans to expand into heat pump installations within a year. “Our ambition is to ensure every home in the UK is fully electrified, and we believe we have a clear path to achieving that,” he asserted. “We have the potential to build a substantial company here.”