Is a secured loan to install a heat pump, solar and battery a good idea
New house, currently renovating, needs a new boiler. The house is quite large at around 172sqm, probably more than double my last house, so not looking forward to the energy bills.
Given that the boiler needs replacing anyway, I’m weighing up alternatives. Considering solar panels, a battery and a heat pump. Had a couple of quotes and think I could get the system installed for under £20k. I’d have to borrow to finance this so am considering a secured loan with my mortgage lender (they don’t offer any green initiatives like some do).
Having ran the numbers in copilot it would seem that the cost to repay the loan would be almost entirely offset by the combination of solar, cheap overnight tariff and a well designed heat pump.
Once the loan is repaid then I’d likely be £2k or more better off per year.
On paper this works, but still feels risky. The main concern is that the secured loan would make remortgaging more difficult, though we got the house for a steal due to its poor state so should get into a lower LTV bracket when the time comes, making it easier to consolidate the loan into the mortgage. Any downsides to this?