Key facts
- What: ECO4 is the UK Energy Company Obligation scheme for funded insulation, heating, and solar upgrades in eligible homes.
- Who qualifies: Homeowners and private tenants may qualify through benefits, EPC rating, property condition, or local authority flexible eligibility.
- Value: Eligible homes can receive fully funded measures worth thousands of pounds.
- Deadline: ECO4 is scheduled to end on 31 December 2026, subject to scheme rules and supplier budgets.
- Next step: Check eligibility before installer capacity tightens.
⚡ Key Takeaways
- ECO4 provides free insulation, boilers, solar panels and heat pumps to eligible UK households
- You may qualify if you receive Universal Credit, Pension Credit, or other means-tested benefits
- Funding is worth up to £10,000+ per household
- The scheme runs until December 2026 — but funding is first-come, first-served
- Apply through an approved ECO4 installer, not directly through the government
- Even without benefits, you may qualify via LA Flex through your local council
ECO4 quick eligibility snapshot
- Most likely fit: you receive a qualifying benefit and your home is EPC D, E, F, or G.
- Still worth checking: you do not receive benefits but have a colder home, low income, or health issues affected by living in a cold property.
- Tenant? You can still qualify with landlord permission.
- Not sure? Use the free checker or read the full ECO4 eligibility guide.
What is the ECO4 scheme?
The Energy Company Obligation 4 (ECO4) is a UK government scheme that places a legal obligation on large energy suppliers — including British Gas, EDF, E.ON, OVO, Scottish Power, and Octopus Energy — to fund energy efficiency improvements in eligible households across England, Scotland, and Wales.
ECO4 launched in April 2022 and is scheduled to run until December 2026. It replaced the previous ECO3 scheme and introduced a "whole house" approach, meaning improvements are designed to lift your home's energy performance by at least two EPC bands where possible.
The scheme is managed by Ofgem, the UK's energy regulator, which oversees supplier obligations and ensures measures are properly delivered. Unlike some grant programmes, ECO4 doesn't have a central application process — instead, approved installers work with energy suppliers to deliver funded measures directly to eligible homes.
Important: ECO4 funding is allocated on a first-come, first-served basis. As December 2026 approaches, available budgets are decreasing. Apply now to avoid missing out. Availability also varies sharply by area — see our ECO4 postcode-lottery research (dataset) for how funding differs by postcode.
Who funds ECO4 — and is it really free?
This is the question most people actually have: who is paying, and what is the catch? The honest answer is that ECO4 is funded by large energy suppliers, not by your council tax or a government cheque. Suppliers above a set customer threshold are legally required to deliver a share of the overall energy-saving target, and they recover the cost through their wider business — so for an eligible household the work is genuinely free, with no repayment.
The obligation falls on the bigger licensed suppliers. Names that have delivered ECO measures include British Gas, EDF, E.ON Next, OVO, ScottishPower and Octopus Energy, among other larger suppliers above the threshold. Importantly, you do not have to be a customer of any particular supplier to benefit — eligibility is about your household and your home, not who sends your bill.
Because the money flows from suppliers rather than a public grant pot, ECO4 is best thought of as an obligation the industry has to meet, delivered locally by installers. That structure is also why funding is finite each year and why genuine ECO4 work is never charged to the household up front. For the full breakdown, see who funds ECO4 and the obligated supplier list.
ECO4 Measures at a Glance
| Measure | Typical Saving | Cost if Paying | ECO4 Covers |
|---|---|---|---|
| Loft insulation | £310/year | £300-£700 | ✅ 100% free |
| Cavity wall insulation | £395/year | £500-£1,500 | ✅ 100% free |
| Solid wall insulation | £505/year | £8,000-£22,000 | ✅ 100% free |
| Boiler replacement | £200-£400/year | £2,000-£4,500 | ✅ 100% free |
| Solar panels (3-4kW) | £300-£600/year | £6,000-£8,000 | ✅ 100% free |
| Air source heat pump | £200-£500/year | £8,000-£15,000 | ✅ 100% free |
Savings based on Energy Saving Trust estimates for a typical semi-detached house. Actual savings depend on property type, location, and energy usage.
Who is eligible for ECO4?
ECO4 eligibility is primarily based on receiving certain means-tested benefits. If you receive any of the following, you may qualify:
- Universal Credit — the most common qualifying benefit
- Pension Credit (Guarantee Credit element)
- Income-Based Jobseeker's Allowance (JSA)
- Income-Related Employment and Support Allowance (ESA)
- Income Support
- Child Tax Credit (annual income under £16,480)
- Working Tax Credit (annual income under £16,480)
- Housing Benefit
- Warm Home Discount (core group)
Property requirements
In addition to receiving a qualifying benefit, your property must meet certain criteria:
- Located in England, Scotland, or Wales
- Current EPC rating of D, E, F, or G (homes rated A, B, or C are already considered energy efficient)
- Suitable for the proposed measures (determined by a technical survey)
- You must own the property, or be a tenant with your landlord's written permission
Flexible eligibility (LA Flex)
Even if you don't receive qualifying benefits, you may still be eligible through the Local Authority Flex route. Under this pathway, your local council can refer you to the scheme if you meet criteria such as:
- Living on a low income (below the local authority's threshold)
- Living in fuel poverty or at risk of fuel poverty
- Having a health condition worsened by living in a cold home
- Being elderly or having young children in a poorly insulated property
Contact your local council's energy efficiency team to find out if LA Flex eligibility is available in your area.
You may still qualify even if you think you don’t: households with low income, high heating costs, poor EPCs, disability-related heating needs, or local authority support should still run the checker. If ECO4 is not the best fit, you may be better suited to other energy grants or council-backed routes.
What improvements does ECO4 cover?
ECO4 funds a wide range of energy efficiency measures. The specific improvements recommended for your home will depend on a technical survey that assesses your property's current condition and identifies the most effective upgrades.
| Measure | Typical Savings | Notes |
|---|---|---|
| Loft insulation | £590/year | Top-up to 300mm or full installation |
| Cavity wall insulation | £395/year | For homes with unfilled cavity walls |
| Solid wall insulation (external) | £640/year | For homes without cavities |
| Solid wall insulation (internal) | £430/year | Less disruptive than external |
| Boiler replacement | £400/year | Replacing old G-rated boilers |
| First-time central heating | £900+/year | For homes with no central heating |
| Underfloor insulation | £230/year | Suspended timber floors |
| Flat roof insulation | £350/year | For flat-roofed extensions |
| Room-in-roof insulation | £490/year | For converted loft bedrooms |
| Solar PV panels | £1,100/year | Usually combined with other measures |
| Air source heat pump | £300+/year | Replacing fossil fuel heating |
Whole-house approach: ECO4 aims to improve your home by at least two EPC bands. This means you'll often receive multiple measures — for example, loft insulation plus cavity wall insulation plus a boiler upgrade — all at no cost.
How to apply for ECO4
There's no single government website where you apply for ECO4. Instead, the process typically works like this. Learn more about how to apply for ECO4 in our detailed guide.
- Check your eligibility with Great British Energy eligibility checker — Use our eligibility checker to instantly check whether you're likely to qualify based on your benefits and property type. You can also read about who qualifies for ECO4.
- Get matched with an installer — We connect you with ECO4-approved installers operating in your area who work directly with obligated energy suppliers.
- Technical survey — A qualified surveyor visits your home to assess which measures are suitable and will have the biggest impact on energy efficiency.
- Approval and scheduling — Once the survey is submitted and approved by the energy supplier, installation is scheduled at a time that suits you.
- Installation — Certified tradespeople complete the work. This can take anywhere from a few hours (loft insulation) to several days (external wall insulation).
- Quality check — An independent inspection may be carried out to ensure the work meets required standards.
How long does the ECO4 process take?
From your initial enquiry to completed installation, the typical timeline is:
- Eligibility check: Instant (online) or 1-2 days (with documents)
- Survey booking: 1-2 weeks after eligibility confirmation
- Survey to approval: 1-3 weeks (depends on energy supplier)
- Installation: 1-5 days depending on measures
- Total process: Typically 4-8 weeks from start to finish
ECO4 vs other energy schemes
ECO4 isn't the only government energy scheme available. Here's how it compares:
| Feature | ECO4 | GBIS | Boiler Upgrade Scheme |
|---|---|---|---|
| What it covers | Insulation, heating, solar | Insulation only | Heat pumps only |
| Eligibility | Benefits-based | Council tax band | All homeowners |
| Cost to you | Free | Free or subsidised | £7,500 off |
| Deadline | 31 December 2026 | Closed 31 March 2026 | 2028 |
| Who can apply | Owners & tenants | Owners & tenants | Owners only |
The good news is that you can often combine multiple schemes. For example, you could get ECO4 funding for insulation and separately apply for the Boiler Upgrade Scheme for a heat pump. You just can't use two schemes to fund the same individual measure.
Common ECO4 questions
Do I need to be with a specific energy supplier?
No. ECO4 is an obligation on the "Big Six" and other large suppliers, but you don't need to be their customer. The scheme is available regardless of who supplies your energy.
Will ECO4 affect my benefits?
No. ECO4 improvements are not counted as income and won't affect your benefit payments. The measures are funded by energy companies, not paid to you as cash.
What if my home is listed or in a conservation area?
Some measures may require planning permission in conservation areas or for listed buildings. External wall insulation, for example, may not be permitted. However, internal insulation, loft insulation, and boiler replacements are usually still possible. Your surveyor will advise on what's feasible.
Can I choose which improvements I get?
The measures installed are determined by the technical survey and what will be most effective for your home. However, you can discuss options with your installer and have the final say on what work goes ahead.
What happens after ECO4 ends?
No successor scheme has been announced — Ofgem lists no "ECO5", and future support is expected to come through the government's Warm Homes Plan rather than a direct ECO replacement. The ECO4 scheme ends on 31 December 2026 — a nine-month extension from its original 31 March 2026 close, confirmed after a government consultation in 2025 — so if you're eligible now, we strongly recommend applying rather than waiting for a future scheme that may never arrive or may have different criteria. Other routes already run past 2026:
- Warm Homes: Local Grant — delivered by local councils in England to lower-income households in less-efficient homes; it runs to March 2028.
- Boiler Upgrade Scheme — £7,500 towards a heat pump for homeowners (rising to £9,000 for oil-heated homes from 21 July 2026), open regardless of benefits.
- Warm Home Discount — an annual rebate off your electricity bill for eligible households.
ECO4 funding by region
ECO4 is available across England, Scotland, and Wales, though uptake and installer availability can vary by region. Areas with older housing stock — particularly in the North of England, Scotland, and Wales — tend to have higher concentrations of eligible properties.
Major cities including London, Birmingham, Manchester, Leeds, Glasgow, Edinburgh, Cardiff, Bristol, Liverpool, Sheffield, Newcastle, and Nottingham all have active ECO4 installers. Rural areas may have fewer installer options, but the scheme covers all eligible properties regardless of location.
Protecting yourself from ECO4 scams
Unfortunately, the popularity of ECO4 has attracted some unscrupulous operators. Protect yourself by:
- Never paying upfront. Genuine ECO4 measures are free for eligible households. If someone asks for money upfront, it's likely a scam.
- Checking installer credentials. All ECO4 installers should be TrustMark registered and PAS certified for the measures they install.
- Getting everything in writing. Ensure you have documentation of what will be installed, the timeline, and confirmation that it's fully funded under ECO4.
- Being wary of cold callers. While some legitimate companies do conduct outreach, be cautious of anyone who pressures you into signing up immediately.
- Checking with Ofgem. You can verify an installer's ECO4 participation through Ofgem's official register.