A guide has been released to support credit unions as they explore opportunities in green home finance and respond to growing member demand for home energy improvements.
The Green Loan Handbook, published by the Green Home Finance Principles (GHFPs), was co-developed by the Green Finance Institute and the Loan Market Association. The project was supported by All Together Money (formerly the Association of British Credit Unions) and People Powered Retrofit through research from the Green Homes Finance Accelerator-funded Better Home Loan Project.
It outlines how credit unions can develop practical, affordable green home loan products to help members fund upgrades such as insulation, solar panels, battery storage and heat pumps – helping households to create warmer, more energy-efficient homes while reducing long-term energy costs.
Credit unions are already playing a significant role in the UK’s growing green finance market, says All Together Money. More than two thirds of green home loan products currently available are offered by credit unions, the apex adds, with organisations across the country developing products tailored to local community needs.
The handbook highlights that while more than five million UK households can now access a credit union or community lender green loan aligned with the GHFPs, significant opportunities remain to expand access further as consumer demand for energy efficiency improvements continues to grow.
Research referenced within the handbook also found that many members already see their credit union as a trusted source of finance and guidance when considering home improvements.
Related: UK credit unions trial green lending to power home retrofits
“Credit unions have a real opportunity to support members through the transition to greener, more energy-efficient homes in a way that is trusted, affordable and community-focused,” said All Together Money CEO Matt Bland.
“This handbook is designed to provide practical guidance for credit unions at every stage of their journey – whether they are exploring green lending for the first time or looking to expand an existing offer. The movement is already showing strong leadership in this space, and there is significant potential to build on that momentum.”
Maria Dutton, associate director of the Green Finance Institute, said: “Unsecured green home finance products have tripled over the past three years, and five million UK households can now access a credit union or community lender loan aligned with the Green Home Finance Principles.
“Working in partnership with All Together Money, and with support from People Powered Retrofit’s experience through the Green Home Finance Accelerator, we were delighted to develop this handbook to help more credit unions design green loans that support warmer, more energy efficient homes and help households better manage their energy bills.”
The handbook also explores the growing market opportunity for green lending, practical considerations when designing a green loan product, artnership and delivery models, upporting colleagues and member engagement, and case studies from across the credit union movement.
The resource aims to provide a practical starting point for credit unions considering how green home finance could support both members and wider community outcomes.
For more information and to access the handbook, please click here.
