Energy Company Obligation (ECO)
The Energy Company Obligation (ECO) is a government energy efficiency scheme for homeowners and tenants in Great Britain to tackle fuel poverty and help reduce carbon emissions.
About ECO / ECO4
The ECO scheme is a government initiative that offers financial assistance for energy-efficient upgrades to households in Great Britain. Homeowners with a low EPC rating can apply for a package of energy-saving measures and heating improvements through the ECO scheme. It's worth noting that the scheme is not restricted to boiler upgrades or replacements.
The scheme has seen 4 iterations, ECO, ECO1, ECO2 and ECO3. The ECO3 scheme closed on 31 March 2022 and the ECO4 Order came into force in July 2022. ECO4 applies to measures installed from 1 April 2022 and will cover a four-year period until 31 March 2026.
Quick start
Get started by checking if ECO4 funding is available for your household.
How does ECO work?
The ECO scheme works by placing a Home Heating Cost Reduction Obligation (HHCRO) on medium and large energy suppliers. Under HHCRO, obligated suppliers must promote measures that improve the ability of low-income, fuel-poor and vulnerable households to heat their homes. This includes actions that result in reduced energy usage, such as installing insulation or upgrading a heating system. The overall target for these measures is divided between suppliers based on their relative share of the domestic gas and electricity market.
What measures are funded under ECO4?
You may be able to get support to install:
- new energy efficient boiler
- smart heating controls
- first-time central heating
- solar panels
- air source heat pump
- hybrid air source heat pump
- loft insulation
- cavity wall insulation
- under-floor insulation
- solid wall insulation
- room-in-roof insulation
Who is the ECO scheme for?
The ECO scheme aims to provide free energy-saving measures in the home of those considered to be in fuel poverty.
ECO4 eligibility
You might be able to get help for energy-saving improvements to your home if you either:
- claim certain benefits and live in private housing (for example you own your home or rent from a private landlord)
- live in social housing
You may get help with the cost of:
- insulation work, for example to your loft or cavity walls
- replacing or repairing your boiler - or other upgrades to your heating
If you claim benefits and live in private housing
You might be eligible for help if you live in private housing and get one of the following benefits:
- Child Tax Credit
- Working Tax Credit
- Universal Credit
- Pension Guarantee Credit
- Pension Savings Credit
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Child Benefit
- Housing Benefit
If you own your house, it must have an energy efficiency rating of D, E, F or G to be eligible.
If you rent from a private landlord, the house must have an energy efficiency rating of E, F or G to be eligible. You must have the owner’s permission to do the work.
If you’re a social housing tenant
If you live in social housing that has an energy efficiency rating of E, F or G you might be eligible for help with insulation or installing a heating system for the first time.