What Does The ECO4 Grant Cover? A Full Guide To The Scheme

The Energy Company Obligation 4 (ECO4) scheme is a UK government-backed programme designed to help households improve their home energy efficiency.

Running from April 1, 2022, to March 31, 2026, ECO4 targets low-income and vulnerable households, helping reduce fuel poverty, cut carbon emissions, and make homes warmer and more affordable to run.

But what exactly does the ECO4 grant cover? Let’s break down everything you need to know.

What Is the ECO4 Scheme?

ECO4 is the fourth phase of the Energy Company Obligation, requiring the UK’s largest energy suppliers (those serving over 150,000 customers) to fund energy-saving improvements in eligible homes.

Regulated by Ofgem, the scheme ensures suppliers meet carbon reduction targets by delivering real, tangible upgrades to the households that need them most.

ECO4’s three core goals are to reduce fuel poverty by lowering energy bills through home upgrades that increase efficiency.

The second goal is achieved by upgrading homes around the UK, effectively reducing carbon emissions, which in turn supports the UK’s net-zero carbon goals.

The last goal is to improve home energy efficiency by upgrading heating systems, insulation, and renewable energy installations.

ECO4-funded upgrades are provided at no cost. There are no upfront payments or hidden charges for eligible households.

The energy suppliers bear the financial responsibility for delivering these improvements.

However, the scheme is performance-based.

Installers will assess your property to ensure the upgrades will result in meaningful energy efficiency improvements.

Partial funding might apply if specific criteria aren’t fully met, but most installations for qualifying homes are fully funded.

What Does the ECO4 Grant Cover?

ECO4 provides full or partial funding for a wide range of home energy improvements.

The extent of funding depends on your eligibility, but in many cases, the upgrades are entirely free.

The key improvements that ECO4 wants to address are as follows:

Insulation Upgrades

Proper insulation is one of the most effective ways to keep your home warm and reduce your energy bills.

It’s for this reason that ECO4 mainly focuses on upgrading insulation in older homes to prevent heat escaping and reducing the amount of energy needed to warm the property.

Three insulation areas that will be focused on include:

• Loft Insulation: Helps prevent heat loss through the roof.
• Cavity Wall Insulation: Fills wall gaps to reduce drafts and retain heat.
• Solid Wall Insulation: Both internal and external solutions are available.

Heating System Upgrades

Upgrading outdated or inefficient heating systems can significantly reduce your energy bills and improve home comfort.

According to the Energy Saving Trust, upgrading a G-rated boiler to an A-rated boiler with full heating controls will save you £420 in Great Britain (GB) and £500 in Northern Ireland (NI)

That’s why ECO4 recommends replacing or repairing outdated boilers.

For homes that didn’t have central heating, ECO4 will suggest installing a new one, and will most likely include a new programmable thermostat and smart controls to optimise heating usage.

Renewable Energy Solutions

ECO4 doesn’t just focus on making homes more efficient, it also supports households in generating their own clean energy if possible.

There are two renewable energy solutions that ECO4 could suggest installing:

• Solar Panels: Generate free, renewable electricity to reduce dependency on the grid.
• Air Source Heat Pumps: Highly efficient systems for both heating and hot water.

Window and Door Improvements (Limited Scope)

While ECO4 primarily focuses on insulation and heating, some flexible options may include secondary glazing or door draught-proofing in some instances.

Now that we’ve outlined what ECO4 covers, who can apply?

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Who Is Eligible for ECO4?

The ECO4 scheme targets households that meet specific criteria. These include the following:

What’s Your Home’s Energy Rating?

The ECO4 scheme’s primary goal is to improve homes’ ability to retain heat.

If you’ve got draughty rooms, sky-high energy bills, or an old, wheezing boiler, chances are your home isn’t as energy-efficient as it could be.

To qualify for ECO4, your home must have an Energy Performance Certificate (EPC) rating of D, E, F, or G. The Lower the rating, the worse the property’s efficiency.

If you’re not sure of your EPC rating, you can check it online through the UK government’s EPC register.

When homes are bought and sold, it is a legal requirement to have an EPC assessor conduct an inspection.

Also, an EPC rating is valid for 10 years.

If you’re renting, your landlord should know this information.

Are You (or Someone in Your Household) On A Qualifying Benefit?

ECO4 is designed to assist households struggling with energy costs.

If you, or anyone in your household, receives certain income-related benefits, you’re likely eligible.

These benefits include:

• Universal Credit (UC)
• Child Tax Credit (CTC)
• Working Tax Credit (WTC)
• Income-based Jobseeker’s Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)
• Income Support (IS)
• Housing Benefit
• Pension Credit (Guarantee Credit or Savings Credit)
• Child Benefit (subject to income thresholds)
• Warm Home Discount recipients

Here’s the good news: only one person in your household needs to be on a qualifying benefit for you to apply.

It doesn’t even need to be the homeowner.

Not On Benefits? There’s Still A Way (ECO Flex Route)

If you’re not claiming any of the listed benefits, don’t give up yet!

ECO4 also offers a “Flex” option, officially known as Local Authority Flexible Eligibility (LA Flex).

Through this route, your local council can nominate households for ECO4 funding based on factors such as:

• A household income under £31,000 per year
• Health conditions worsened by living in a cold, poorly insulated home

It’s worth contacting your local council to find out if they participate in the ECO Flex programme.

If you are eligible for ECO4 assistance, how do you apply to the scheme?

How Do I Apply for the ECO4 Scheme?

Applying for ECO4 is simpler than you might think. Once you’ve checked your eligibility, follow these steps:

Step 1: Find A TrustMark-Registered Installer

You can’t apply directly through the government. Instead, you’ll need to go through an approved installer or energy provider.

You can approach:

• Large energy suppliers (British Gas, EDF, E.ON, Octopus, OVO, Scottish Power)
• Specialist ECO4 partners (Interglow, EcoGiants, BTS Grants)

Ensure that whoever you choose is TrustMark-registered and compliant with PAS 2030 standards, which means they’re officially accredited to carry out ECO4 work.

Step 2: Home Assessment

Your chosen provider will arrange for an energy assessor to visit your home.

During the assessment, they’ll evaluate:

• Your current insulation
• The efficiency of your heating system
• Any additional upgrades that could reduce your energy bills

This assessment is free and helps determine which improvements you qualify for.

Step 3: Get Approved And Book Your Installation

If everything checks out, you’ll be approved for ECO4 support.

Your installer will then schedule a convenient time to carry out the upgrades, whether that involves adding insulation, replacing a boiler, or installing solar panels.

For those who do not qualify for ECO4 assistance, you can always finance a new boiler upgrade through our various options.

Finance A New Boiler With WarmZilla?

Not eligible for ECO4 but still want to improve your home’s energy efficiency? WarmZilla has you covered.

We offer a range of flexible finance plans to help spread the cost of a new boiler and heating system upgrades.

If you would like someone to discuss applying for ECO4 assistance, our professionals are available to assist you.