Credit unions have been working on a government pilot to improve energy efficiency in homes through affordable green finance.
Working with organisations such as People Powered Retrofit and Carbon Co-op, credit unions are helping to test and deliver retrofit loan products as part of the Green Home Finance Accelerator (GHFA) programme.
The initiative has seen credit unions, including Metro Moneywise, trial retrofit-focused loan models such as:
- The Better Home Loan – an off-the-shelf unsecured product supported by retrofit advice, quality assurance tools, and ready-made marketing materials;
- The One-Stop Shop Loan – a bespoke lending option embedded into the wider retrofit journey, offering integrated technical advice and support.
These pilots, which run through to mid-2025, are already showing the potential to help members access the finance they need to make their homes warmer, greener, and more cost-efficient.
Related: Interview: Matt Bland, new chief of British credit unions apex
The Association of British Credit Unions (Abcul) supported the early stages of this project by helping shape the research and feasibility work, and by facilitating engagement with credit unions to provide valuable insight into sector appetite and readiness. Abcul is now in the process of developing training modules on green home lending through the Abcul Academy, to help staff build their knowledge and confidence in supporting members throughout the retrofit process.
“We’re proud of the role credit unions are playing in making retrofit more accessible,” said Abcul programme manager Jake Hatch. “This pilot reflects the potential of our sector to support major social challenges like the journey to net zero – while staying true to our values of affordability, trust, and community focus. Through the Abcul Academy, we’re working to equip staff with the skills they need to guide members through these improvements.”
Across the pilot, partners and sector stakeholders have become increasingly confident in the role credit unions can play in delivering and expanding retrofit finance. According to the Green Finance Institute (2025), there are currently 13 green home loan products available through UK credit unions. In Greater Manchester, five SoundPound member credit unions have aligned with the GFI’s Green Home Finance Principles.
As the pilot continues, participating organisations are gathering insights that could help scale the model across the sector, says Abcul, “ensuring that the benefits of retrofit are available to all communities, not just the wealthiest households”.
