Zopa and Octopus support homeowners' transition to renewable energy

Zopa Bank has announced the launch of a new partnership in the UK, with supplier Octopus Energy. The bank is thus entering the renewable energy market, estimated to be worth £23 billion. The aim of this alliance is to offer private customers financing for the installation of sustainable infrastructures such as solar panels or charging points for electric vehicles.

FACTS

• On May 23, Zopa Bank announced the launch of a partnership with energy supplier Octopus Energy.

• The two players aim to meet the growing consumer demand for green and renewable energies. A market estimated at £23 billion.

• To this end, the bank intends to offer Octopus customers in the UK its range of BNPL and financing products for the purchase and installation of solar panels.

• This offer will enable individuals to spread their costs of switching to renewable energy over periods ranging from 24 to 84 months.

• Zopa announced that the partnership would also apply to electric vehicle chargers. These are chargers installed by Octopus engineers, controlled on a dedicated app.

• The installation of solar panels is on the rise. According to the bank, nearly 1.3 million British homes are already equipped with solar panels. This would represent an increase of 4,000% since 2010.

CHALLENGES

• A favorable context for Zopa Bank: The bank explains that, in the run-up to the elections, the various political parties would have reduced their commitments to the energy transition. In terms of electric vehicle chargers, for example, 53,600 charging points have already been installed by public institutions, but this is still far short of the government's target of 300,000 by 2030. Zopa Bank has therefore decided to compensate by increasing its participation in investments in renewable infrastructure and by supporting private installations in particular.

• A double benefit for private customers: Zopa and Octopus highlight the financial advantages of their solution. In addition to the spreading of costs, due to Zopa's BNPL solution, the use of solar energy would reduce electricity costs by almost 90%, a significant saving. This is what is motivating British households to turn to renewable energy, even if climate change is also a factor.

• Zopa claims “BNPL 2.0”: The bank presents its initiative as an evolution of BNPL towards a more responsible, sustainable and, above all, more regulated model that focuses on customer protection (thanks to credit checks for all customers to avoid the accumulation of debt, for example). Zopa claims to have offered its products to over 500 merchants and 70,000 customers. In concrete terms, the products include:

  • More transparent customer paths;

  • A better digital user experience;

  • The ability to underwrite longer and larger loans, thus exceeding current regulatory requirements.

MARKET PERSPECTIVE

• As a reminder, Zopa had already established itself as the fastest-growing digital bank in 2022. After acquiring DivideBuy last year, the former fintech continues to perform well, while multiplying the services it offers its customers, as demonstrated by its partnership with Octopus Energy.