Think-tank urges UK to fund low-cost solar loans and retail bonds for households
A Common Wealth report calls on the UK government to introduce state-backed, low-interest loans and “solar bonds” to make rooftop solar panels affordable for low-income families.
According to a Common Wealth analysis, high-cost commercial loans prevent many UK households from installing solar panels that could save them hundreds of pounds each year. The think-tank recommends a universal scheme funded by government-issued “solar bonds,” retail investment products that would pay 4-5% interest while providing loans at roughly half the prevailing 9-10% rates. Households would repay the 25-year loans via an additional standing-charge component on their energy bills, with the debt remaining attached to the property after a sale.
The proposal is projected to cut household energy bills by about £250 annually and could complement existing warm-homes initiatives and the zero-interest loans announced by Energy Secretary Miatta Fahnbulleh. Solar Energy UK’s policy director welcomed the idea, noting its potential to accelerate the rooftop solar boom, which has already seen nearly 150,000 installations in the first half of 2026.
Why it matters
Affordable solar financing could lower energy costs for low-income UK households and boost clean-energy adoption.
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