Many homeowners and tenants might overlook these opportunities due to misconceptions or a lack of information. In this article, we will explain ECO4 and how it is funded. This initiative can help you have a more comfortable home and lower your energy bills and carbon footprint.

Understanding the ECO4 Scheme

The United Kingdom government has committed to achieving net zero by 2050 and has implemented a series of energy efficiency grant programs to further this objective. Those who are eligible can receive full coverage for their heating upgrades from energy companies.

The ECO4 scheme includes a variety of upgrades that are designed to help improve energy efficiency, including:

Replacement of old, inefficient boilers
Installation of air source heat pumps with solar panels
Upgrades to electric storage heaters with solar panels
Various types of insulation, including loft insulation, roof insulation, internal wall insulation, and cavity wall insulation

How Is ECO4 Funded?

The ECO4 program aims to enhance energy efficiency in at least 3.5 million homes, with a focus on making homes in the D-G energy efficiency range and the least efficient homes in the E-G ranges more energy-efficient. Energy Performance Certificate ratings measure a home’s energy efficiency, ranging from A (most efficient) to G (least efficient). Homes with a lower EPC rating usually have higher energy costs, which makes them prime candidates for the ECO4 scheme upgrade.

Funding for the scheme mainly comes from energy companies that want to make UK homes more energy-efficient and lower energy bills. The UK government also contributes to ensuring the ECO4 scheme’s success and offers grants for insulation, solar power, and renewable energy heat sources.

Why Fund the ECO4 Scheme?

The ECO4 initiative aims to help the UK achieve net zero emissions by encouraging the widespread adoption of renewable energy sources in residential properties. The government is funding this to help speed up the transition.

There are a handful of reasons why the government wants to fund this scheme and has reason for this initiative:

Energy Conservation — ECO4 focuses on promoting energy-efficient practices in households. By optimising energy usage, households can save on energy bills and help reduce carbon emissions.

Support for Vulnerable Households — ECO4 has specifically targeted households with individuals facing challenges in meeting their energy expenditures, particularly the elderly. With these energy-efficient measures, the initiative can help ensure affordable warmth for these vulnerable individuals.

Environmental Responsibility — ECO4 aligns with the UK’s commitment to mitigating air pollution and addressing climate change. By promoting energy-efficient homes, the program hopes to reduce pollution levels, which would offer a healthier environment for all.

Corporate Social Responsibility — Energy firms have a societal responsibility to act in the community’s best interest. Considering the rise in energy costs, investing in the ECO4 program is a meaningful way for these companies to improve living conditions while protecting the environment.

Who Qualifies for the ECO4 Grant?

Applicants need to meet some key criteria to qualify for the UK-funded grant. If you meet these criteria, you can take advantage of the ECO4 program and make substantial improvements to your home at zero cost.

Income Criteria
Applicants must live in a low-income household, which is usually determined by eligibility benefits like Universal Credit. Household income should be under £31,000 to ensure that assistance is targeted towards those who struggle with energy costs.

Property Requirements
Eligible properties must be privately rented or owner-occupied to allow flexibility for tenants and homeowners who want to improve their living conditions. You must reside in a poorly insulated home with an Energy Performance Certificate (EPC) rating of E, F, or G. The EPC rating of a home reflects the home’s insulation and energy efficiency levels, with lower ratings indicating more energy inefficiency.

Grants do not cover the building of a new home or a second home. This helps focus on improving existing properties that need significant energy upgrades.

Additional Criteria
The applicant’s name should appear on the property’s energy bill, which helps verify residency and responsibility for energy costs. Special consideration is given to those over 60 years old or with a diagnosed illness or disability. This aims to provide additional support for more vulnerable populations who may face more significant challenges related to energy costs and home maintenance.

Expected Outcome
The primary goal of the ECO4 scheme grant is to ensure that improvements made to a property will result in both cost and carbon savings. This means that homes should become more energy-efficient, which will reduce energy bill costs and lower their carbon footprint, which helps contribute to environmental sustainability.


Don’t miss out on your chance to improve your home’s efficiency and reduce energy costs. Contact us today and let us help you take advantage of these important upgrades to make your home more energy-efficient.