Guide To The ECO4 Grant Scheme

Below we’ll explain everything you need to know about the ECO4 scheme, including: eligibility criteria, how much money you’ll be able to get and how to apply. 

To be eligible, you’ll generally need to be: 

• Considered a low income household (below £31,000 per year)
• Living in a property that has an EPC of D or lower
• Receiving a means-tested benefit (such as Pension Credit or Working Tax Credit)

If you qualify, you’ll have access to up to £20,000 in government funding for the likes of insulation, solar panels and even an air source heat pump. Essentially, the ECO4 grant covers most home upgrades that improve a property’s energy efficiency.

However, due to the strict eligibility criteria, most UK households won’t qualify. 

Don’t qualify for the ECO4 grant? You can still access the Boiler Upgrade Scheme. This is a government initiative to provide up to £7,500 per household in funding for those that want to switch from a gas boiler to an air source heat pump. 

These units are typically at least 400% efficient, compared to the average 94% efficiency of an A-rated gas boiler. Put simply, for every 1kWh of electricity consumed, a heat pump is able to produce at least 4kWh worth of heat.

Use our heat pump grant eligibility checker here and see if you qualify for £7,500 in funding (most households do).

What is ECO4?

The ECO4 Scheme (Energy Company Obligation Phase 4) is an initiative created by the UK government to help improve efficiency of homes and cut carbon emissions. Currently, the scheme is set to run until March 2026. At this point, there's a good chance it's either extended, or replaced with a revamped scheme.

The scheme is administered by Ofgem and effectively, requires the largest energy suppliers in the UK to help fund energy efficient home upgrades. Overall, this just doesn't just cut carbon emissions, but helps to lower energy bills and reduce fuel poverty. 

The government focuses on a range of upgrades as part of the ECO4 scheme. These include wall insulation, A-rated boilers, solar panels and air source heat pumps. 

If you're looking for free solar panels or a funded air source heat pump, the ECO4 scheme is what you need. 

Eligibility criteria is complex, but put simply, you'll need to live in a property that has a EPC rating of D-G, as well as being in receipt of specific means-tested benefits. For those that qualify for the ECO4 grant, you could get up to 100% funding for solar panels or an air source heat pump.

ECO4 is available throughout England, Scotland and Wales.

If you’re not eligible for the ECO4 grant, you can use the Boiler Upgrade Scheme. This is limited to air source heat pumps installations. 

Get prices on-screen, inclusive of the £7,500 Boiler Upgrade Scheme grant by using our heat pump quotation tool here.

What Does The ECO4 Grant Cover?

The ECO4 grant covers a wide range of energy efficient home improvements. Currently, the upgrades are split into 3 categories.

Insulation and draught proofing

Upgrades here including the likes of: 

• Loft insulation
• Solid wall insulation (this could be internal or external)
• Underfloor insulation
• Draught proofing, to increase the impact of insulation

Heating

Heating systems covered via the ECO4 grant aren't just limited to the most efficient technologies (such as air source heat pumps). 

Households can qualify for a grant that covers: 

• A first time installation of gas or electric heating (no prior heating system installed)
• Replacement boilers, typically upgraded to an A-rated unit that are over 90% efficient
• Smart heating controls
• Energy efficient electric storage heaters

Renewables

Finally, we have renewables. Common property upgrades that focus on creating renewable energy include: 

• Air source heat pumps
• Solar panel systems‍

‍How Much Money Can I Get?

Now for the big question, how much money can you get via the ECO4 grant? During the application process, your household will be assessed to determine:

• The types of installations you qualify for
• Which ones offer the best balance of value for money and energy efficiency

Depending on exactly what you qualify for, you'll see funding range from £7,000-£20,000. Effectively, you could receive free solar panels, an air source heat pump, insulation, or an upgraded A-rated gas boiler. 

Most eligible households qualify based on receiving specific means tested benefits, as well as a property that has a low EPC rating (D or lower). However, if you don't qualify via this route, there is the option of ECO4 Flex, an arm dedicated to helping low income households, or those suffering with their health.

Typical ECO4 grants amount to £7,000-£12,000. This covers the likes of insulation and heating upgrades. 

However, for those needing an air source heat pump or solar panels, the total grant on offer could be as much as £20,000. 

Remember, the grant funds installation works, you'll never actually be given cash.

ECO4 Scheme Eligibility Criteria

There are various ways to qualify for the ECO4 and ECO Flex scheme to gain funding for household improvements. 

Generally, you'll need to fit into one of the following categories: 

• A member of your household suffers from a condition whereby the cold affects them (such as breathing)
• You are eligible via receipt of means-tested benefits, as well as a homeowner or private tenant
• The property in question has a low EPC rating (D or lower)
• Low income household, with a total income of £31,000 or less

List of Qualifying Benefits

As you can see, receiving a means-tested benefit is crucial when it comes to ECO4 eligibility. 

Here is the current list of qualifying benefits for the ECO4 grant: 

If you're receiving disability benefits such as DLA or Attendance Allowance, these don't qualify via ECO4. However, it's worth contacting your local authority as they may consider disability benefits as eligible, under the ECO4 Flex scheme.

Likewise, if you don't receive any of the benefits mentioned above, you could still qualify by being a low-income household. To qualify, household income would need to be below £31,000 and you'll need to contact your local council to apply for ECO Flex.‍

Can I Still Receive Funding If I Don’t Claim Benefits?

It’s possible to still receive the ECO4 grant, even if you don’t claim benefits. However, it’s going to be much more complicated and you may not receive the higher level of funding. 

Typically, the only ways to qualify are: 

• Be part of a low income household that brings in a total of £31,000 or less
• Have a medical condition that is affected by cold housing

Generally, you’ll need to apply for ECO4 Flex via your local council.

ECO4 Flex allows large energy companies to allocate up to 25% of funding via “flexible” eligibility criteria. The criteria will vary depending on your local authority, so it’s worth contacting them to understand current eligibility criteria.

If you don’t qualify via ECO4 Flex, there is one more option; the Boiler Upgrade Scheme. 

This scheme is designed to help UK homeowners convert to energy efficient heating systems. Via the scheme, you’ll have access to up to £7,500 in funding when you switch from a traditional gas boiler to an air source heat pump. 

Air source heat pump costs vary from £10,000-£13,000. So by using the Boiler Upgrade Scheme you’ll be able to cover the majority of the installation cost of your heat pump.

Most households qualify for the Boiler Upgrade Scheme. 

Not sure if you’re eligible? You can use our 30 second grant eligibility checker here. 

How To Apply

If you think you're eligible to receive the ECO4 grant, or funding via ECO Flex, you'll need to apply via your local council, or, your energy provider. 

To find details of your local council, visit the .GOV website here. 

Alternatively, you can find details of your energy supplier by using this page on Ofgem's website.