ECO4 Explained, Free Energy Improvements for Eligible Homeowners

What is ECO4?

ECO4, the fourth phase of the Energy Company Obligation, is a government scheme administered by Ofgem that requires large energy suppliers (those with 150,000 or more domestic customers) to fund energy efficiency improvements for eligible households. The scheme runs from April 2022 to March 2026.

Unlike grant schemes where homeowners apply directly, ECO4 obligations are placed on energy suppliers who then commission approved installers to carry out the work. The cost is ultimately recovered across all customers' energy bills.

ECO4 funds a wide range of measures, including:

• Loft insulation
• Cavity wall insulation
• Solid wall insulation (internal or external)
• Heat pumps
• Solar panels
• Heating controls and hot water cylinder insulation
• First-time central heating installations

Who is Eligible?

ECO4 has two main eligibility routes:

Route 1, Benefits-Based Eligibility

Households where at least one member receives a qualifying benefit:

• Universal Credit (with income thresholds)
• Pension Credit (Guarantee or Savings element)
• Child Tax Credit
• Working Tax Credit
• Income Support
• Jobseeker's Allowance (income-based)
• Employment and Support Allowance (income-related)
• Housing Benefit
• Child Benefit (subject to income cap)

Route 2, Local Authority Flex (LA Flex)

This route allows local authorities to refer households who do not receive qualifying benefits but are considered to be in fuel poverty or on a low income. Local authority criteria vary, and referrals are made at the council's discretion.

EPC Eligibility Requirement

ECO4 targets properties rated EPC D, E, F, or G. Properties already rated EPC C or above are generally not eligible, as the scheme prioritises the poorest-performing homes.

You can check your current EPC band by searching your address on Property Passport UK, which displays the live EPC certificate for every UK address.

PAS 2035 Compliance

All ECO4 measures must be designed and installed in accordance with PAS 2035, the national standard for domestic retrofit. This means a Retrofit Assessor must survey the property before work begins, a Retrofit Coordinator must oversee the project, and TrustMark-registered contractors must carry out the installations.

This is a legal requirement under ECO4, not optional. It exists to prevent the failures that occurred under earlier schemes where insulation was installed in unsuitable properties without adequate assessment.

How to Apply

You do not apply to Ofgem directly. The typical process is:

1. Check your eligibility using the government's Simple Energy Advice service or contact the Energy Saving Trust advice line

2. Your energy supplier's approved installer will survey the property

3. Eligible measures are confirmed and scheduled

4. Work is carried out at no cost to you by TrustMark-registered contractors

5. A new EPC is issued after improvements are completed

Some local authorities run area-based schemes where households in specific postcodes are automatically offered surveys, check with your council.

What ECO4 Will Not Cover

ECO4 does not cover general repairs, decoration, or improvements unrelated to energy efficiency. It will not fund a new boiler replacement on its own unless a first-time central heating system or heat pump is being installed. Cosmetic upgrades and non-energy-related building work are excluded entirely.