Green Loans Triple: who is offering them and how they are making energy efficiency improvements more accessible
by | January 15, 2026
From high-street banks to community credit unions, a growing number of lenders are helping households access finance for cleaner, warmer, healthier homes.
Unsecured green home loans available in the UK have tripled over the past three years as households across the country seek attractive ways to invest in the comfort, energy efficiency and long-term resilience of their homes.
There has been substantial growth in the number of lenders offering green mortgages in recent years with unsecured loans now following in their wake. Typically designed for borrowing smaller amounts over shorter periods of time, green loans can be a practical way to cover improvements like insulation, draught‑proofing, or even low‑carbon technologies such as heat pumps and solar panels. Together, these choices are shaping a growing green finance landscape in the UK, giving households more flexible routes to make their homes warmer, healthier, and cheaper to run.
Increasing from just nine in 2021, there are now 27 unsecured green loan products available in 2025 designed specifically to support green home improvements. Following a surge of 10 new product launches in 2024 alone, introduced by lenders ranging from high-street banks like Barclays, specialist lenders like Zopa Bank, and local credit unions like Salford Credit Union.
The Green Finance Institute’s Unsecured Green Home Loans Hub champions and monitors market expansion, providing a go-to resource for policymakers, lenders, intermediaries, and other market stakeholders. The Hub drives awareness of available products, highlights market trends, and offers practical guidance, which has supported the continued growth of accessible and attractive finance for home improvements.
The rise in accessible green finance comes as household demand for low-carbon, clean heating technologies increases due to energy price volatility. According to MCS, 2024 saw the highest ever number of certified heat pump installations in the UK, and 2025 is already on track to set new records for installations of solar panels, batteries and heat pumps[1]. Unsecured green home loans play a crucial role in enabling all homeowners to access the finance required to invest in energy efficiency measures such as heat pumps, solar panels and insulation.
To drive market expansion of unsecured green home loans, the Green Finance Institute works directly with lenders, from major high street banks to specialist lenders and credit unions to support the design and scale-up of new products. Improved market transparency has been achieved through the co-development of frameworks such as the Green Home Finance Principles, developed by the Green Finance Institute and the Loan Market Association. By convening stakeholders, identifying barriers, and co-creating solutions, these efforts have helped clarify risks and highlight mechanisms to mitigate them.
These collaborative efforts are now translating into tangible growth across the market, reflected in the progress made by lenders pioneering these products. One such example is Tandem Bank, which recently marked a significant milestone in its green lending portfolio. “Tandem Bank is proud to have surpassed £468 million in green home improvement lending, with record demand for our solar and air-source heat pump financing,” said Julian Nutley, Managing Director of Home Improvement Loans at Tandem Bank. “We’re seeing real momentum as new products come online to meet consumers’ appetite for cleaner, warmer and more energy efficient home solutions. The Green Finance work to expand access to affordable home decarbonisation finance remains invaluable in driving this progress”
Underscoring the growing local reach in the unsecured green home loan market, thanks to members of the SoundPound Group aligning with the Green Home Finance Principles, nearly every Greater Manchester borough has access to trusted, community-led finance to make their homes cleaner, warmer and more energy efficient. One of its members, No1 CopperPot, has alone already surpassed £1m in green lending across home energy upgrades and vehicles since the loan’s launch at the end of 2023.
More credit unions and community lenders across the UK are following the SoundPound Group’s pioneering lead. Over 5 million households across the UK now have access to a credit union or community lender-offered loan aligned with the Green Home Finance Principles. The Green Finance Institute is continuing to work with credit unions across the UK to continue growing this coverage.
Capital Credit Union in Scotland was the first credit union outside England to align a green home loan with the Green Home Finance Principles (GHFPs). “We’re incredibly proud to see our members embracing green finance to make their homes cleaner, warmer and more energy efficient,” said Samantha Homer, CEO of Capital Credit Union. Launched in late 2023, the product had already delivered £1m of green lending by November 2024. Homer added, “in the 2024/25 financial year alone, we lent out over £3.4 million to people across Scotland to invest in sustainable technologies — a clear sign that affordable, community-led finance can play a major role in the transition to net zero. By offering fair and accessible green home loans, we’re helping households cut energy costs, reduce carbon emissions, and invest in a more sustainable future.”
With more green home loan products available from both national and local lenders, momentum is building towards fair and accessible financial solutions that work for all households. These products can help households fund everything from simple draught-proofing to more major upgrades like heat pumps and solar panels, making homes warmer, healthier, and cheaper to run. As the market grows, and with the Green Finance Institute continuing to help drive progress, accessible finance supporting green home improvements is becoming a real tool for households to take part in the UK’s transition to net zero.
[1] MCS – 2024 is the best year on record for heat pump installations in the UK (2024), Independent – Record installations of solar panels, batteries and heat pumps so far in 2025 (2025)
The GFI is not in any way commercially affiliated with the finance providers listed on this webpage. Finance providers are listed solely to reflect the fact that they have either:
- adopted the GFI’s Green Home Finance Principles (GHFPs);
- made commitments relevant to the objectives of the GHFPs; or
- are otherwise marketing the products listed for purposes consistent with the permitted uses of proceeds as set out in the GHFPs.
This webpage is for informational purposes only. It is not, and is not intended to be, an invitation or inducement to engage in investment activity. The GFI makes no statement as to the suitability, terms or risks of any listed finance provider, product, or service, and does not recommend any particular finance provider, product or service. Nothing on this webpage constitutes investment or financial advice of any kind, and should not be used or relied upon as such. Other finance providers are available.
