All of my heating and hot water is provided either by solar power (the solar hot water system in summer) or my wood burning stove.
I have a clean-burning wood stove which emits very little in the way of the particulates which form smoke. If you live in a smoke control area and you want to install a wood burning stove, you need to choose a model which has been exempted by DEFRA from the Clean Air Act for burning wood in a smokeless zone. A list of exempt appliances can be found at the UK Smoke Control Areas website.
To ensure the most efficient use of heat, it is very important to insulate your home as much as possible. Unfortunately, Green Cottage is a solid walled property and so I have not been able to install cavity wall insulation. However, I have installed 270mm of loft insulation under an energy supplier scheme. There are many subsidised insulation schemes on the market, the best way to find the one which is the cheapest in your area is to call the Energy Saving Trust on 0800 512 012.