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🗞️ 𝗠𝗮𝗿𝗰𝗵 𝗮𝗯𝘀𝗼𝗹𝘂𝘁𝗲𝗹𝘆 𝗳𝗹𝗲𝘄 𝗯𝘆, 𝗮𝗻𝗱 𝗶𝘁'𝘀 𝘁𝗶𝗺𝗲 𝗳𝗼𝗿 𝗮𝗻𝗼𝘁𝗵𝗲𝗿 𝗲𝗱𝗶𝘁𝗶𝗼𝗻 𝗼𝗳 𝗼𝘂𝗿 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿! In the New Energy Strategies service, we've talked a lot about the importance of alternative financing options to accelerate uptake of household green energy tech. 𝗠𝗮𝗻𝘆 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿𝘀 𝗰𝗮𝗻'𝘁 𝗮𝗳𝗳𝗼𝗿𝗱 𝘁𝗼 𝗱𝗿𝗼𝗽 £𝟱-𝟭𝟬𝗸+ 𝗼𝗻 𝘀𝗼𝗹𝗮𝗿 𝗽𝗮𝗻𝗲𝗹𝘀 𝗼𝗿 𝗮 𝗵𝗲𝗮𝘁 𝗽𝘂𝗺𝗽, and this is a key barrier holding them back - they told us so in our last customer survey. 𝗣𝗿𝗼𝘃𝗶𝗱𝗲𝗿𝘀 𝘁𝗵𝗮𝘁 𝗰𝗮𝗻 𝗵𝗲𝗹𝗽 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿𝘀 𝘀𝗽𝗿𝗲𝗮𝗱 𝘁𝗵𝗲𝘀𝗲 𝗰𝗼𝘀𝘁𝘀 𝗼𝘃𝗲𝗿 𝘁𝗶𝗺𝗲 𝗳𝗮𝗰𝗲 𝗮 𝘀𝗲𝗿𝗶𝗼𝘂𝘀𝗹𝘆 𝗹𝘂𝗰𝗿𝗮𝘁𝗶𝘃𝗲 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝘆: to sell more products and to generate steady, recurring financing revenues. But we continue to see hesitance from the sector, especially incumbent energy retailers, around: 🏦 𝗥𝗲𝗴𝘂𝗹𝗮𝘁𝗶𝗼𝗻: "We don't want to become a bank." 💰 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗻𝗴: "How do I manage the delayed revenue generation?" 👯 𝗖𝗮𝗽𝗮𝗯𝗶𝗹𝗶𝘁𝗶𝗲𝘀: "We don't know how to set up and manage loans." 🙋 𝗨𝗽𝘁𝗮𝗸𝗲: "How do I make my offer attractive to customers?" ❗ 𝗥𝗶𝘀𝗸𝘀: "Isn't there a chance it will all go wrong?" As Nigel says: 𝘁𝗵𝗲𝘀𝗲 𝗮𝗿𝗲 𝗿𝗲𝗮𝗹 𝗰𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀, 𝗯𝘂𝘁 𝘁𝗵𝗲𝘆 𝗰𝗮𝗻 𝗯𝗲 𝗼𝘃𝗲𝗿𝗰𝗼𝗺𝗲. Building the offer in-house has the greatest value potential. But partnerships, which outsource some of the risks and capability needs, are a useful first step into the world of finance. Embedded finance partnerships, in particular, allow for a streamlined customer experience. In this newsletter, we cover Hometree - who has recently developed an embedded leasing offer specifically for household energy products. As always - feel free to reach out to me, Nigel Timperley, or Chloé Deparis if you're interested in hearing more - we'd love to chat.
Millions of European householders are ready to invest in the energy transition—but they can’t get past the upfront costs. This month’s #NES newsletter looks at the finance gap that #energyretailers have yet to cross, and why the real opportunity may lie in thinking more like a bank. #energytransition #LCPDelta