ECO4 Scheme Explained: Who Qualifies and How to Apply in 2025
What Is the ECO4 Scheme?
The Energy Company Obligation (ECO) was first introduced in 2013, and ECO4 is the fourth and final phase, running from April 2022 to March 2026.
Unlike general grants, ECO4 is funded by energy suppliers such as British Gas, EDF, Octopus, and E.ON. These companies are legally required by Ofgem to help households reduce energy use and cut carbon emissions.
ECO4 is designed to:
Tackle fuel poverty by helping vulnerable households.
Improve the UK’s overall housing stock and EPC ratings.
Reduce carbon emissions in line with net-zero targets.
ECO4 is not a loan or repayment scheme. If you qualify, the costs of the improvements are covered — either fully or heavily subsidised — depending on your circumstances and property type.
What Home Improvements Are Covered?
The ECO4 scheme covers a wide range of energy efficiency upgrades. These vary depending on your home’s current EPC rating and heating system, but typically include:
Boiler Replacements
Old or broken boilers can be swapped for modern, A-rated boilers that use less fuel and save hundreds of pounds annually.
Solar Panels
Solar PV panels help you generate your own renewable electricity. With the Smart Export Guarantee, you can also sell excess power back to the grid.
Heat Pumps
Air source and ground source heat pumps are sustainable alternatives to gas and oil heating systems. They are highly efficient and reduce long-term heating costs.
Home Insulation
Insulation is one of the most effective energy-saving measures. ECO4 covers:
Loft insulation
Cavity wall insulation
Solid wall insulation
Underfloor insulation
Smart Heating Controls
Smart thermostats and heating controls improve efficiency, helping households heat only the spaces they need, when they need it.
Each property is assessed individually. Installers will recommend the combination of upgrades that will deliver the biggest improvements to your EPC rating.
Who Is Eligible for ECO4 in 2025?
Eligibility is one of the most common questions homeowners have about ECO4. The scheme is targeted at low-income households, but the criteria are wider than many people think.
Main Qualification Routes:
Benefits-Based Eligibility
If you or someone in your household receives benefits, you may automatically qualify. Eligible benefits include:
Income Support
Jobseeker’s Allowance (JSA)
Employment and Support Allowance (ESA)
Pension Credit (Guarantee Credit and Savings Credit)
Universal Credit
Housing Benefit
Child Tax Credit
Working Tax Credit
Low-Income Households
Even if you don’t receive benefits, you may still qualify if your household income is under £31,000 per year.
Property Energy Efficiency
Homes with an Energy Performance Certificate (EPC) rating of D, E, F, or G are prioritised. If your home is already rated A–C, you are less likely to be eligible.
Local Authority Referrals (LA Flex)
Local councils can nominate households under “flexible eligibility.” This is useful for families in fuel poverty or those considered vulnerable (such as elderly residents or those with health issues).
Tenants and Landlords
Private tenants may qualify with landlord permission.
Landlords can benefit by improving property EPC ratings, which are legally required for rentals.
How Much Can You Save with ECO4?
The financial benefits of ECO4 vary depending on the upgrades you receive.
Boiler Replacement – A new boiler could save £300–£600 annually, depending on your current system.
Loft Insulation – On average, loft insulation saves £300–£400 per year.
Wall Insulation – Cavity wall insulation can save around £250 annually, while solid wall insulation can save £500+.
Solar Panels – Homeowners can cut electricity bills by up to 50% and earn money back through the Smart Export Guarantee.
Heat Pumps – While upfront costs are high, ECO4 funding and reduced running costs can save hundreds every year compared to oil or electric heating.
Over a 10-year period, households could save £5,000–£15,000 in energy bills with ECO4-supported upgrades.
How to Apply for ECO4 in 2025
Applying for ECO4 is straightforward. Here’s how the process works:
Check Eligibility
Enter your postcode and answer a few quick questions using an ECO4 eligibility checker. This determines whether your household qualifies.Book a Free Home Survey
If eligible, a qualified surveyor visits your property to assess what upgrades will have the most impact.Receive Your Improvements
Work is carried out by government-approved installers, typically within weeks.Enjoy Lower Bills
Once installed, your home becomes more efficient, saving you money month after month.