Common Wealth Urges UK Government to Launch Solar Bonds

The Common Wealth thinktank is urging the UK government to introduce solar bonds to reduce the cost of solar panel loans for low-income households. Lead author Donal Brown proposes retail investment products, similar to premium bonds, that would allow savers to earn 4% to 5% interest while providing homeowners with loans at roughly half the current market rate of 9% to 10%.

Under the proposal, 25-year loans would be attached to the property and repaid via energy bill standing charges, potentially saving households £250 annually. While Solar Energy UK supports the plan, Energy Secretary Miatta Fahnbulleh stated the government is already implementing zero and low-interest loans for solar panels, batteries, and heat pumps. These existing measures could save families approximately £550 a year.

The Department of Energy Security and Net Zero further highlighted VAT cuts on electricity and changes to green levies as additional methods to lower energy costs for citizens.