Following a partnership with digital bank Zopa, Octopus Energy plans to introduce flexible buy now, pay later (BNPL) products to its UK customers.
Zopa, which achieved annual profitability for the first time last month, will finance the costs of acquiring and installing Octopus solar panels through the deal. Customers can spread these payments across as many as 84 instalments over seven years.
Octopus Energy’s commercial director, Jessica Wilkinson, emphasized the importance of utilizing renewable energy sources like solar power, stating, “The biggest power plant we’ve got is the sun – so making use of it by creating mini power generators on our roofs is an absolute no-brainer.”
Under the partnership, customers will also have the option to use BNPL financing for installing app-controlled EV chargers.
Dave Farbrother, CEO of Zopa’s BNPL and retail finance division, highlighted the significance of investing in green energy for future generations, stating, “The energy security and prosperity of future generations are dependent on greening our economy.”
Zopa entered the BNPL space in August 2023, ensuring that its BNPL services are fully regulated and conducting affordability and credit checks to prevent customers from accumulating unmanageable debt.
Consumer groups have previously expressed concerns about using BNPL products for essential services such as energy. However, Zopa clarified that the payment product would only be available for solar panels and EV chargers.
Octopus Energy, valued at $9bn (£7.16bn) this month following an increased stake by existing shareholders, aims to expand its offerings with Zopa’s BNPL services, promoting sustainable energy solutions for its customers.
