HSBC has partnered with energy supplier OVO to launch its new Buy Now, Pay Later service (BNPL) for the first time.

The move will give the company’s customers access to a new financing option that allows them to split the cost of green technology.

OVO customers will be the first to benefit from HSBC's new Flexipay payment service, which allows them to stagger payments for products such as solar panels and batteries into a series of instalments, instead of making one large upfront payment.

The move comes as the affordability of green decarboniszation technology becomes a significant barrier for many consumers. According to data provided by OVO, 74 per cent of people would like to install home decarboniszation technology, but 75 per cent say the upfront expense of installing it is too much.

Nearly 70 per cent would install green technology if they could pay in instalments according to the figures.

Andy Rankin, interim head of unsecured lending at HSBC UK, said: “The next five to ten years will see a significant acceleration in investment that supports net zero, including people who want to make their home more energy efficient.”

The new Flexipay option enables customers to purchase their solar system with a £500 deposit to pay upfront and spread payments to up to eight years with interest bearing credit.

Customers won’t need to use or create a HSBC account to use the service.

Rankin emphasised the benefits of paying in instalments as it becomes an increasingly popular budgeting tool: “It provides the certainty of fixed repayments and a set end date. For consumers looking to make a large purchase, HSBC Flexipay will enable them to do so with support from a responsible lender they can trust.”

As an example, OVO’s clients will be able to purchase a £9000 solar panel and spread the payment over three years with a monthly payment of around £236.

The bank said that options for heat pumps and electric vehicle charges will follow.

“Moving into next year we will look to expand HSBC Flexipay further, providing those buying a wide range of products the opportunity to benefit from its flexibility,” continued Rankin.

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