The UK Government and the Green Finance Institute (GFI) have launched the Green Home Finance Strategic Partnership to accelerate the growth of the green home finance market in the UK, empowering consumers to upgrade their homes when they choose.
This initiative is part of the Warm Homes Plan, published in January 2026, which commits £15 billion in public investment to support the installation of solar PV, battery energy storage systems, and heat pumps. The partnership is co-chaired by Martin McCluskey, Minister for Energy Consumers at the Department for Energy & Net Zero (DESNZ), and Dr Rhian-Mari Thomas OBE, CEO of GFI, with support from Secretary of State Ed Miliband.
The launch precedes the government’s Future Home Standards legislation, expected in January 2026, which will introduce measures to reduce carbon emissions from domestic properties through solutions such as rooftop solar PV, insulation, and heat pumps.
Within a year, the partnership aims to develop a shared roadmap to scale green home finance, create practical solutions for lenders and government, and expand access to affordable home upgrade finance for households. A cross-sector steering group, including financial institutions, energy providers, consumer groups, and government representatives, will build on previous initiatives to advance green home finance solutions.
Steering group members include Barclays, Citizens Advice, Energy Saving Trust, Energy UK, the Finance and Leasing Association, HSBC, Lloyds Banking Group, Nationwide, NatWest, Nesta, UK Finance, and the UK Green Building Council. “Together, these stakeholders share one goal: scale green home finance to make upgrades accessible for 5 million homes, creating warmer, healthier, and more affordable living across the UK,” said Thomas.
The secretariat will be jointly managed by DESNZ and GFI, with four thematic working groups led by industry leaders to co-develop policy recommendations and deliver practical solutions for scalable product development and market growth. The four groups will focus on: innovations and incentives (chaired by UK Finance); industry insight for government-backed loan initiatives (chaired by GFI); driving demand and standardizing consumer journeys (chaired by Nesta and the Finance & Leasing Association); and enhancing financial consumer protections and standards (chaired by Energy UK).
McCluskey stated: “Our Warm Homes Plan will deliver upgrades and lower energy bills for up to five million homes across the country. To do this we will work with industry to make it easier for everyone to access a wide range of financing options that will make heat pumps and solar panels more affordable. Forming this Strategic Partnership with some of the biggest names in finance, research and innovation, and consumer protection will ensure the financing and support is there to upgrade the nation’s homes and drive down bills for good.”
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