The ECO4 scheme explained
As an installer, you can assist your customers in taking advantage of the UK government's ECO program. This scheme aims to alleviate fuel poverty and reduce carbon emissions by providing funding for initiatives like free boiler grants, helping your customers access efficient heating solutions at no cost.
What is ECO funding and what can it cover?
The Energy Company Obligation (ECO) scheme is one of the mechanisms the UK Government has established to help households achieve their goal of being 100% carbon neutral.
Available until 31st March 2026, the scheme is administered through Ofgem and has been through four different iterations. The latest version is ECO4, which is supported by £4 billion worth of funding for eligible applications.
The scheme provides grants to fund energy efficient upgrades to homes with the aim of reducing emissions, electricity and energy bills. The upgrades may include new heating systems like boilers or air source heat pumps, loft or cavity wall insulation and other measures designed primarily to increase energy efficiency and reduce fuel poverty.
Eligibility criteria
A person might be eligible for the ECO4 scheme if they live in private housing and receive one of the following benefits listed:
| Income based Jobseekers Allowance (JSA) | Income related Employment and Support Allowance (ESA) |
| Income Support (IS) | Pension Credit Guarantee Credit (PCGC) |
| Working Tax Credit (WTC) | Child Tax Credit (CTC) |
| Universal Credit (UC) | Housing Benefit |
| Pension Credit Savings Credit (PCSC) | Child Benefit (within the income caps*) |
Measures available through the ECO4 scheme:
External wall insulation
Underfloor insulation
Solar panels
Loft insulation
Air source heat pumps
Who or which property types would qualify for ECO funding?
A homeowner, landlord or tenant (renting privately or through a housing association) in Great Britain. To be eligible, the home (houses or flats) will need to have an EPC rating of D to G with occupiers who claim income-related benefits, such as income-related employment and support allowance.
How is funding provided?
Funding is supplied to PAS 2030 registered ECO installation companies from the Energy companies.
The funding levels are established from the property's EPC rating based on pre and post measures being installed. A ‘fabric first’ approach is used to decide which eligible measures can be funded.
How can installers get involved with ECO?
If you are an installer interested in getting involved with ECO4, you need to contact an obligated supplier. Installers must be a TrustMark registered business to be eligible to deliver measures under ECO4.
If you're installing the aroTHERM plus, you can access a 45% innovation measure uplift. Vaillant's aroTHERM plus is the first heat pump to be awarded an innovation measure, making it easier for your eligible customers to access low carbon heating systems.
You can learn more here about the ECO4 innovation measure here.