Islanders have long cared about reducing waste and using energy wisely, but attention is now shifting towards making more ambitious green choices. From solar panels to heat pumps, households want to invest in technology that can make a lasting difference to both the planet and budgets.

Yet, despite this, many find themselves caught in what’s increasingly being called ‘the green gap’: the space between wanting to live sustainably and being able to afford it. Recent studies highlight just how significant that financial hurdle remains. In the UK, more than a third of homeowners cite cost as the main barrier to making their homes more energy efficient.

What the green gap really means

The concept of the green gap is more than just a budgeting problem; it’s a wider social challenge. It’s a reminder that the move to a low-carbon lifestyle is still a privilege rather than an accessible choice. Retrofitting a home, switching to an electric vehicle, or even improving insulation requires money. A typical heat pump installation can cost upwards of £8,000, while a full solar system can exceed £10,000. Add in the cost of materials and labour, and the dream of a greener home can quickly feel distant.

The divide is becoming even more apparent as energy prices continue to climb. In Guernsey, electricity costs have risen by 17% over the past two years. These rising costs underline why greener alternatives are so appealing, and yet so frustratingly out of reach.

As the team at Little Green, a trusted provider of renewable energy solutions in the Channel Islands, explains:

“Self-generated renewable energy offers a clear opportunity to reduce running costs while supporting the States of Guernsey’s goal of reaching carbon net zero by 2050, but the upfront cost remains a major obstacle.”

The situation is similar in Jersey, as explained by Cleone Steadman, Head of Personal Lending at Close Finance Jersey.

“We often speak to customers who really want to make greener choices but feel priced out. It’s not about willingness; it’s about affordability. People see the long-term benefits but struggle with the short-term costs. That’s where the right financial support can make a real difference.”

To help narrow that gap locally, Close Finance has introduced preferential rates for qualifying sustainable finance loans, designed to make practical progress possible for more people who want to invest in greener living.

While the green gap won’t close overnight, financial initiatives – like our preferential rates – are a first step to making the gap smaller. Soon, we hope that green investments – something that is currently seen as aspirational – becomes achievable for all.

Taking the next step

If you’re planning an energy-efficient upgrade for your home, our team can help you explore whether a sustainable finance loan could make it possible. Speak with us to learn more about preferential rates for qualifying projects and how we can support your move toward a greener, more energy-efficient home.

 

Finance is available to Channel Islands residents aged 18 or over and is subject to status. Indemnities may be required. Terms and conditions apply.

Close Finance is a registered business name of Close Finance (CI) Limited, which is a part of the Close Brothers Group under Close Brothers Group PLC. Subscriber to the Code of Practice for Consumer Lending in Jersey – sponsored by the Jersey Consumer Council. Licensed in Guernsey with the Guernsey Financial Services Commission pursuant to part II of the Lending, Credit and Finance (Bailiwick of Guernsey) Law 2022. This advertisement is approved solely by Close Finance and is not approved by any regulator.

Company number: 79538 (Registered in Jersey)