Making your home greener — insulation, solar panels, a heat pump — often means
an upfront cost, and there’s a growing range of finance and grants to help
spread or reduce it. As with any borrowing, it pays to compare and to watch
for mis-selling.
Green mortgages and loans
Some lenders offer green mortgages — a better rate or
cashback for energy-efficient homes or improvements — and
green home-improvement loans aimed at measures like
insulation and low-carbon heating. Compare the total cost of borrowing, not
just the headline rate, and check the lender is authorised by the Financial
Conduct Authority.
Check grants before you borrow
Before taking on finance, see what you can get for free or at reduced cost.
The Boiler Upgrade Scheme gives £7,500 towards a heat pump,
and other schemes help with insulation — our
Grants and funding hub and
renewable-energy grants page set out
what’s available. A grant can cut the amount you need to borrow.
Avoid mis-selling
Green home improvements attract pushy sales tactics, sometimes bundled with
expensive finance. Never sign up under pressure, be wary of “free” solar or
guaranteed-savings claims, use installers certified under the MCS and a
recognised consumer code, and make sure any finance is clearly explained and
FCA-regulated.
What to do next
Check grants first, compare any finance carefully, and use certified
installers — see our
renewable energy page. If you’ve
been mis-sold, our Legal claims pages explain
your options.
Sources
GOV.UK (Boiler Upgrade Scheme); FCA (authorised firms; Consumer Duty); MCS.
Reviewed: 3 September 2026.