Lender innovation and strategic partnerships are fuelling growth in the UK’s unsecured green home loan market. With the majority of the UK’s 29 million homes requiring energy-efficient upgrades, a diverse range of financial solutions will be essential to support homeowners in their investment.

Unsecured consumer loans offer homeowners a popular avenue for financing home improvements. Often involving smaller amounts borrowed over shorter periods compared to mortgage finance, they provide flexibility and convenience for consumers. An unsecured green home loan is a specialised form of unsecured consumer financing, tailored specifically to assist homeowners with financing for energy efficiency and green home upgrades.

Unsecured green home loans can be offered by lenders in a range of different ways, but all look to streamline a process for a homeowner investing in energy efficiency and green upgrades for their home.

Unsecured green home loans can help to normalise the adoption of energy-efficient and green home technologies, streamlining homeowners’ journeys to more comfortable, energy-efficient homes.

The content on this page provides an overview of the UK’s unsecured green home loan market. If you believe that your organisation provides a financial solution that should be included in the unsecured green home loan product table, please contact us at consumer.finance@gfi.green.

Resources

Risk Demystifier: a guide to the current unsecured green home loan market
Mitigating the Risk: a toolkit of solutions to mitigate risk for unsecured green home loans
Green Finance Institute – Green Home Finance Principles
Green Finance Institute –  Lender’s Handbook

Unsecured Green Home Loans

Company Name Product Name Link to Product Launch Year Specific use of funds? (e.g. Solar Panels) Whole of Market / Tied?* Validation Required? Aligned or supporters to the GHFPs?
Lendology CIC Energy Efficiency Loan https://www.lendology.org.uk/loans/energy-efficiency-loans/ 2005 Customers can only use the funds for specific works as approved by their local council – for energy efficiency that would be windows, draught proofing, insulation, and heat pumps. Works must be approved prior to commencement of the works. Funds can also cover the deposit. TiedOnly available in areas where Lendology has a partnership with the local council Full quotes and an invoice required prior to releasing any loan funds. Aligned
Lendology CIC Renewable Energy Loan https://www.lendology.org.uk/loans/renewable-energy-loans/ 2010 Customers can only use the funds for specific works as approved by their local council – for a renewable energy loan that would be solar panels or other renewables. Works must be approved prior to commencement of the works. Funds can also cover the deposit. TiedOnly available in areas where Lendology has a partnership with the local council Full quotes and an invoice required prior to releasing any loan funds. Aligned
Sunsave Energy Limited Sunsave Plus https://www.sunsave.energy/sunsave-plus 2024 Financing the installation of retrofit solar panels and batteries. Whole of Market Sunsave are both the lender and the installer for the green technologies under Sunsave Plus, meaning that any loans dispersed are validated as green. Aligned
Tandem Bank Green Home Improvement Loans https://www.tandem.co.uk/borrow/home-improvement-loans 2019 Solar panels & Battery storage, heat pumps, double glazing/energy efficient windows. TiedThrough approved retailers/ installers. Funds paid directly to installer for approved goods and installation. No
Propensio Finance Energy & Renewables https://www.propensio.co.uk/our-products/renewables/ 2019 Solar panels, battery storage, EV chargers, Air source heat pumps. Whole of Market Use of funds validated through EPVS. Aligned
Plend Make My House Green https://www.makemyhousegreen.com/ 2023 solar panels, heat pumps Whole of Market Make My House Green/Switched takes care of this No
Santander UK Home Energy Cashback https://www.santander.co.uk/personal/support/greener-living/greener-homes/green-improvements 2024 We have a range of retrofitting measures via partners (Octopus, Vibrant, MakeMyHomeGreen) TiedCurrently only available to existing Santander mortgage and / or current account customers The installation (and cost) needs to be verified by the supplier / installer No
* to denote availability to specific customers

Table last updated in April 2024.