What is the ECO4 Scheme?
The Energy Company Obligation 4 (ECO4) is the UK government's flagship energy efficiency scheme, providing free home improvements to eligible households across England, Scotland, and Wales.
Understanding the ECO4 Energy Efficiency Scheme
ECO4 (Energy Company Obligation 4) is a government-backed initiative that runs from 2022 to 2026, with a budget of £4 billion to help improve energy efficiency in homes across the UK.
Key ECO4 Statistics:
- £4 billion total scheme budget
- Runs from 2022 to 2026
- Over 450,000 homes to benefit
- Average £2,300 energy bill savings
Government Backed
ECO4 is mandated by the UK government and administered by Ofgem, ensuring legitimate and regulated service provision.
Targeting Vulnerable Households
Priority given to low-income families, pensioners, and those receiving qualifying benefits to reduce fuel poverty.
No Upfront Costs
All approved improvements are provided at no cost to the homeowner, funded directly by energy companies.
How Does the ECO4 Scheme Work?
The ECO4 scheme operates through a simple but effective framework that connects eligible homeowners with energy company obligations.
Energy Company Obligation
Large energy suppliers must help a certain number of households improve their energy efficiency as part of their license conditions.
Funding Distribution
Energy companies fund approved installers to carry out free energy efficiency improvements for eligible households.
Professional Installation
Certified engineers install energy-efficient boilers, insulation, and heating systems at no cost to the homeowner.
ECO4 Scheme Benefits
Free Boiler Replacement
Brand new A-rated boilers worth up to £4,000
Cavity Wall Insulation
Professional insulation saving hundreds yearly
Loft Insulation
Up to 300mm thick insulation for maximum efficiency
Central Heating
Complete heating system upgrades
ECO4 vs Previous ECO Schemes
ECO4 builds upon the success of previous schemes with enhanced benefits and broader eligibility.
| Feature | ECO3 | ECO4 | Improvement |
|---|---|---|---|
| Duration | 2018-2022 | 2022-2026 | Extended timeline |
| Budget | £640 million/year | £1 billion/year | 56% increase |
| Eligibility | More restrictive | Broader criteria | More households qualify |
| Focus | Basic measures | Whole house approach | Comprehensive upgrades |
Who Funds the ECO4 Scheme?
ECO4 is funded by the UK's largest energy suppliers as part of their regulatory obligations.
Major Energy Suppliers
- British Gas
- E.ON UK
- EDF Energy
- Octopus Energy
- Scottish Power
Medium Suppliers
- SSE Energy Services
- Shell Energy
- Bulb Energy
- Ovo Energy
How It Works
Energy suppliers with over 150,000 domestic customers must meet ECO4 targets.
They fund approved installers to deliver free energy efficiency measures to eligible households.
What Energy Improvements are Available?
ECO4 covers a wide range of energy efficiency measures tailored to your home's needs.
Boiler Replacement
Replace old, inefficient boilers with modern A-rated condensing boilers. Includes combi, system, and heat-only boilers.
Cavity Wall Insulation
Fill empty wall cavities with insulation material to prevent heat loss. Suitable for homes built between 1920-1990.
Loft Insulation
Install or top up loft insulation to current standards (270-300mm depth). Prevents significant heat loss through the roof.
First Time Central Heating
Install complete central heating systems in homes without existing heating. Includes boiler, radiators, and pipework.
External Wall Insulation
Add insulation layer to external walls of solid wall properties. Dramatically improves thermal efficiency.
Heat Pumps
Install renewable heating technology including air source and ground source heat pumps. Future-proof heating solution.
Could You Benefit from the ECO4 Scheme?
Check if you qualify for free energy efficiency improvements under the ECO4 scheme
You May Qualify If:
- You receive qualifying benefits
- Your home is energy inefficient (EPC D-G)
- You own or privately rent your home
- Your boiler is over 7 years old
Qualifying Benefits Include:
- Universal Credit
- Pension Credit
- Income Support
- And many more...
Need More Information About ECO4?
Our energy efficiency experts are here to help you understand the ECO4 scheme and guide you through the application process.
Learn More About ECO4
Explore our comprehensive guides to the ECO4 scheme