Low-cost solar panel loans could save UK households hundreds per year, think tanks say

A joint analysis by the New Economics Foundation and the Finance Innovation Lab proposes that a loan scheme backed by the Bank of England could make solar‑panel installations affordable for as many as eight million UK homes. The researchers estimate that, if the government approves low‑cost financing for solar panels equipped with batteries, millions of households could cut their energy bills by several hundred pounds each year.

The study notes that solar‑plus‑storage systems are among the cheapest ways to generate electricity domestically, yet the typical upfront price of around £6,000 remains out of reach for most cash‑strapped families. By providing long‑term, low‑interest loans, the scheme would spread the cost over time, mirroring financing models already in use in several European nations that are rapidly expanding residential solar capacity. If implemented, the programme could accelerate the UK’s transition to renewable energy while delivering measurable savings for a large segment of the population.