If you are considering installing solar panels on your home, the good news is that there is financial help available, whether that’s through loans, grants or other schemes. In fact, you can even lease panels through certain solar panel installers, though this isn’t typically covered by government grants. One of the most widely used government support programmes is the ECO4 scheme, which helps low-income households improve their energy efficiency through grants and funded upgrades.
If you’re interested in a grant, there are a number of options depending on where in the UK you live and your household income. Most are targeted at those on low incomes in homes with poor insulation. The ECO4 grant, which we’ll discuss below, is a key part of the government’s broader Energy Company Obligation programme.
What is the ECO4 scheme and how does it work?
If you or someone you live with qualifies for state benefits, then the ECO4 grant could help you. ECO4 is a government-backed energy efficiency scheme designed to tackle fuel poverty and reduce carbon emissions. As the name suggests, it’s the fourth phase of the Energy Company Obligation, and it runs until 31 March 2026. It is funded by major energy companies and regulated by Ofgem.
The ECO4, therefore, is not a traditional government grant; rather, it is an obligation from the government on energy suppliers to fund energy efficiency upgrades in eligible households.
ECO4 eligibility: who qualifies for the ECO4 grant?
You may qualify if your household income is less than £31,000, you live in private housing (i.e. not council-owned), and you receive one of the following benefits:
- Child Tax Credit
- Working Tax Credit
- Universal Credit
- Pension Guarantee Credit
- Pension Savings Credit
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Child Benefit
- Housing Benefit
If you own your house, it must be rated D or worse and if you rent, E or worse for energy efficiency.
You can find out what energy rating your home has on the government website. It covers properties in England, Wales or Northern Ireland. This includes homes, business properties and public buildings.
What does the ECO4 grant cover and what’s not included?
You can apply through your energy provider for funding worth up to £10,000 to make your home more energy efficient.
The scheme is for broad energy efficiency, so you might find that insulation and a smart thermostat are better uses of the funding for your energy use.
What the ECO4 scheme covers
- Insulation upgrades, including for your loft, cavity wall, and solid wall
- Heating system upgrades, including for efficient boilers and heat pumps
- Renewable energy installations, including solar panels
What the ECO4 scheme does not cover
- New doors or windows
- Properties with a D or higher Energy Performance Certificate rating
- Projects that combine ECO4 with other funding sources (In some cases, ECO4 Flex may allow complementary funding with strict conditions, but usually it cannot be combined)
How to apply for the ECO4 scheme
You can contact your local council to check if they are participating in ECO4 Flex, or you can go directly to an energy supplier.
Ofgem maintains a list of companies taking part.
These include:
- British Gas
- E (Gas & Electricity) Ltd
- E.ON UK Solutions
- Ecotricity
- EDF
- Octopus Energy
- Outfox the Market
- OVO
- Scottish Power
- So Energy (Including ESB Energy)
- The Utility Warehouse
- Utilita Energy Ltd
Be cautious of third-party websites claiming to offer access to ECO4. Many are not affiliated with the scheme. Some may charge fees for services you can access for free; others may be scams. You can read Ofgem’s scam advice to learn more.
What to do if your ECO4 home upgrade goes wrong
If you aren’t happy with the work that’s done on your home, first contact the supplier. If that doesn’t work, Citizens Advice can offer support.
The ECO4 scheme is regulated by Ofgem, so any disputes around ECO4 eligibility, grant misuse, or poor workmanship may also fall under their oversight.
