As energy costs continue to rise and the UK pushes toward a low-carbon future, the ECO4 scheme remains one of the most impactful government energy efficiency schemes available. Designed to support low income and fuel poor households, ECO4 helps reduce energy bills while improving the overall energy performance of homes.

If you’re wondering how to apply for the ECO4 scheme and what it covers in 2025, this guide will walk you through everything you need to know, from eligibility criteria to energy efficiency upgrades, and how to access available grants.

What Is the ECO4 Scheme?

The ECO4 scheme is the fourth phase of the Energy Company Obligation, a UK government initiative that requires large energy suppliers to fund energy efficiency measures for eligible households. Its primary goal is to tackle fuel poverty, reduce carbon emissions, and enhance the energy efficiency of homes that need it most.

Launched in 2022 and running until March 2026, the ECO4 scheme is aimed at supporting low income households, especially those on certain benefits like Universal Credit, Income Support, Pension Credit, or Child Benefit. The focus is on replacing inefficient heating systems and installing insulation to prevent heat loss and make homes more energy efficient.

To learn more about the policy, visit the UK government’s official Energy Company Obligation page.

Eligibility Criteria for ECO4 in 2025

To qualify for an ECO4 grant, households must meet specific eligibility criteria. Typically, you may be eligible if you:

• Receive certain benefits such as Universal Credit, Pension Credit, Income Support, or Support Allowance

• Are on a low income or considered fuel poor

• Live in a property with an Energy Performance Certificate (EPC) rating of E, F, or G

• Are part of a vulnerable household, including elderly residents, young children, or individuals with health conditions

Local authority flexibility can also be applied, allowing more households to access the scheme under discretionary conditions.

How to Apply for the ECO4 Scheme

Applying for the ECO4 scheme is straightforward. You can begin the process by:

1. Checking your eligibility – Use an online tool such as the Energy Saving Trust’s eligibility checker to see if your household qualifies.

2. Contacting an ECO4-approved installer – Accredited installers or facilitators like EnergySlug can help determine what improvements your property may need.

3. Scheduling an energy assessment – A surveyor will carry out an assessment of your home to identify suitable energy saving measures.

4. Approval and installation – If approved, the installer will arrange to complete the necessary energy efficiency improvements, such as boiler replacements or installing insulation.

What Energy Efficiency Measures Does ECO4 Cover?

The ECO4 scheme offers a wide variety of energy efficiency upgrades designed to improve your home’s energy performance and comfort while lowering energy bills.

Heating System Upgrades

A key feature of the scheme is to replace outdated or inefficient heating systems with energy efficient models. This includes:

• Boiler replacements for those with non-condensing or broken boilers

• Air source heat pumps, which offer an efficient heating alternative to gas or oil systems

• First time central heating installations in homes that have never had central heating before

• Electric storage heaters, upgraded to more efficient modern heating systems

Insulation Measures

Insulation is one of the most cost-effective ways to reduce heat loss and cut heating bills. ECO4 funds various types of wall and roof insulation:

• Cavity wall insulation

• Solid wall insulation, including internal wall insulation and external wall insulation

• Loft insulation and roof insulation to minimise heat loss through the top of the house

Renewable Energy Systems

ECO4 is aligned with the UK’s net-zero goals and supports renewable energy systems such as:

• Solar panels, including solar PV (photovoltaic) systems

• Efficient heating controls to better manage energy use

These installations can significantly enhance energy efficiency and contribute to reducing your carbon emissions.

Understanding the Boiler Upgrade Scheme

The Boiler Upgrade Scheme, often integrated within ECO4 or used alongside it, offers financial support to replace inefficient boilers. Eligible households can receive grants of up to £5,000 for upgrading to heat pumps or other low-carbon heating solutions.

Combining this with other energy saving improvements can make a considerable difference in both comfort and ongoing heating costs.

For additional information on the Boiler Upgrade Scheme, you can refer to the Ofgem Boiler Upgrade Scheme guidance.

How Funding Works Under ECO4

The ECO4 scheme is funded by obligated energy suppliers, meaning large energy suppliers are required to provide funding for eligible households. These funds are used to cover all or part of the cost of installing energy efficiency measures.

Depending on your property, income, and the type of improvements needed, the value of the ECO4 grant can range from £7,000 to over £20,000. The exact amount will depend on:

• The condition and size of your home

• Your eligibility status

• The energy efficiency upgrades needed

In most cases, eligible households do not need to pay anything upfront.

Why ECO4 Is Important for UK Households

ECO4 offers a number of essential benefits:

• Reduce energy bills through lower energy consumption

• Improve your home’s energy efficiency, making it warmer in winter and cooler in summer

• Tackle fuel poverty by making essential upgrades accessible to those on lower incomes

• Support vulnerable households with tailored solutions that enhance comfort and safety

• Reduce carbon emissions by encouraging the switch to cleaner, more efficient heating solutions

The Role of Energy Companies

Energy companies are central to the delivery of ECO4. As part of their obligations under the Energy Company Obligation ECO policy, they must fund energy efficiency measures and work with accredited installers to carry out the improvements.

These companies are monitored by Ofgem, the scheme regulator, to ensure compliance and fair distribution of support.

Choosing the Right Improvements

Each home is different, and not every energy saving measure will be suitable for your property. A professional energy assessment will determine which upgrades are most appropriate and cost-effective.

In many cases, a combination of heating upgrades, insulation, and renewable energy systems will deliver the best results, helping to:

• Improve energy efficiency

• Lower heating bills

• Enhance your home’s energy performance

Final Thoughts

If your home is hard to heat, your heating system is outdated, or you’re struggling with rising energy bills, the ECO4 scheme could provide the help you need. Whether you’re interested in cavity wall insulation, solid wall insulation, or installing solar PV, ECO4 makes energy efficiency improvements more accessible and affordable.

Start by checking if you’re eligible and take the first step toward a warmer, more energy efficient home.

Need help navigating your application? EnergySlug connects eligible households with trusted installers to make the process simple from start to finish.