Norwegian-based solar marketplace Otovo has launched its solar subscription product in the UK, aiming to “democratise access to solar”.
The new offering enables UK homeowners to get access to installed solar systems without the sometimes prohibitive upfront costs.
Despite a surge in UK solar installations over the past year – industry standards authority MCS reported over 180,000 domestic solar installations in 2023 – residential solar uptake remains significantly lower than in other European countries. Only 6% of UK homes have adopted the technology, in stark contrast to countries like the Netherlands (25%) and Belgium (22%).
This is despite VAT exemption and tumbling hardware and installation costs, but Otovo claims an additional major obstacle has been the lack of accessible financing options for British consumers. Otovo’s subscription model mirrors its current European household offering and aims to address that inequity. Customers can benefit from domestic solar without the upfront cost and, according to Otovo, “could make savings from day one”.
Otovo acts as an intermediary between hardware installers and customers, using “proprietary technology” to unite customers with “the best possible prices, designs, and quality of installations”. The subscription model includes a warranty on hardware and workmanship for the duration of the deal (up to 20 years for panels and 10 years for batteries).
Financing models like subscriptions and leasing are proven to accelerate solar adoption, particularly among those who aren’t top earners. This pattern has been seen in the US, where similar models have driven growth in recent years.
Jina Kwon, Otovo’s UK general manager, explained the company’s mission: “Our subscription product changes the entire British solar market. Subscriptions immediately make solar accessible to most homeowners across the UK through a low monthly payment with no down payment. We offer a warranty for the full term of the subscription–up to 20 years–meaning customers no longer need to worry about quality of hardware and or installation. We want solar to be as accessible as possible.”
Chris Hewett, chief executive of Solar Energy UK, noted: “It is great to see more options becoming available for consumer solar. Offering different ways to access affordable capital for clean energy is a great way to increase take-up and spread the benefits of solar to more and more homes. We are talking to policy makers about ways to encourage more such initiatives.”