What Does the ECO4 Grant Cover?

Introduction

With rising energy costs and growing concerns about carbon emissions, the UK government has introduced a range of initiatives to make homes more energy efficient.

The ECO4 grant is one of the most significant schemes, designed to help households reduce their energy bills while improving the comfort and sustainability of their homes.

But what exactly does the ECO4 grant cover? This article will explore the full range of home energy upgrades available through the scheme, who qualifies, and how Green Homes Group can help you access funding to improve your home for free.

What We Will Discuss in This Article

  • What is the ECO4 grant and how does it work?
  • What energy-saving measures does the grant cover?
  • Who qualifies for ECO4 funding?
  • How to apply for the ECO4 grant
  • Are there any hidden costs or contributions?
  • The benefits of applying for the ECO4 grant
  • Why you should act now before funding runs out

If you’re looking for fully funded home upgrades under the ECO4 scheme, Green Homes Group is your trusted partner to help you secure funding and ensure your home benefits from energy-efficient improvements.

Understanding the ECO4 Grant

The ECO4 Grant is a government-backed energy efficiency scheme that provides free home upgrades to qualifying households across the UK. It is the fourth and final phase of the Energy Company Obligation (ECO) scheme, designed to combat fuel poverty, reduce carbon emissions, and help UK homes become warmer, more energy efficient, and cheaper to run.

This initiative is part of the UK government’s wider strategy to achieve net-zero carbon emissions by 2050. By providing fully funded energy-saving measures, ECO4 helps homeowners and tenants lower their energy consumption, cut heating costs, and contribute to a more sustainable future.

What is the ECO4 Grant?

The ECO4 scheme is an obligation placed on large energy companies, requiring them to fund energy efficiency improvements for low-income and fuel-poor households. Unlike other home improvement grants, the ECO4 grant is not a loan—it is completely free for those who qualify, with no need for repayment.

The scheme provides funding for insulation upgrades, heating system replacements, renewable energy installations, and ventilation improvements. The goal is to ensure homes remain warm in winter, cool in summer, and require less energy to heat—ultimately reducing household energy bills.

The funding is allocated through accredited installers, ensuring that all work is professionally completed, high quality, and fully compliant with UK energy efficiency standards.

How Much Funding is Available?

The UK government has allocated a total of £4 billion to the ECO4 scheme, which runs from April 2022 to March 2026.

While the total amount of funding varies depending on the size of the property, its current energy efficiency rating, and the specific upgrades required, most eligible households receive full funding for their improvements.

How Much Can Homeowners Receive?

On average, qualifying households can receive between:

  • ✔ £7,000 – £20,000 for home energy efficiency improvements.
  • ✔ £10,000+ for more extensive upgrades, such as heating system replacements and insulation.

Funding is prioritised for homes with poor energy efficiency ratings (EPC bands D, E, F, or G) and those occupied by low-income or vulnerable households.

Who Provides the ECO4 Funding?

Unlike traditional government grants, which are funded directly by taxpayer money, the ECO4 scheme is funded by large UK energy suppliers, including:

These suppliers are required by law to contribute to the UK’s carbon reduction efforts by financing energy efficiency upgrades for eligible households.

The funding is distributed through certified installers, who apply for the grant on behalf of homeowners and carry out the necessary upgrades. Green Homes Group works with TrustMark-certified professionals to ensure all installations meet PAS 2030 and PAS 2035 energy efficiency standards.

Why Was the ECO4 Grant Introduced?

The ECO4 scheme was introduced to address three major challenges:

1. Rising Energy Bills

With energy costs at record highs, many households struggle to afford heating. ECO4 helps reduce energy costs by improving home efficiency, making heating more affordable and sustainable.

2. Fuel Poverty

Millions of UK homes lack proper insulation and efficient heating. ECO4 ensures low-income and vulnerable households can access free improvements to keep their homes warm and cost-effective to run.

3. Carbon Reduction

Heating accounts for nearly 40% of the UK’s total energy consumption. ECO4 supports the UK’s net-zero goals by upgrading homes with low-carbon heating systems and insulation to cut carbon emissions.

What’s Different About ECO4?

ECO4 is the most comprehensive phase of the ECO scheme, building on its previous versions (ECO1, ECO2, and ECO3) with new, more targeted funding criteria.

Here’s how ECO4 differs from previous phases:

  • ✔ Longer-Term Energy Savings – Instead of focusing on single improvements, ECO4 takes a whole-house approach, meaning properties receive multiple upgrades for maximum energy efficiency.
  • ✔ Expanded Eligibility Criteria – ECO4 now includes more low-income households and introduces the ECO4 Flex scheme, which allows local councils to approve funding for families with health conditions.
  • ✔ More Renewable Energy Support – ECO4 provides more funding for solar panels, heat pumps, and energy storage systems, helping homes transition to sustainable, low-carbon energy.
  • ✔ Stricter Quality Control – All work under ECO4 must meet higher installation standards (PAS 2035 compliance), ensuring better long-term performance of all energy-saving measures.

Who Can Benefit from ECO4?

The ECO4 grant is open to both homeowners and private tenants. The scheme is designed to help:

  • ✔ Households with low income (earning under £31,000 per year).
  • ✔ People receiving government benefits (Universal Credit, Pension Credit, Housing Benefit, Tax Credits).
  • ✔ Homes with low energy efficiency (EPC rating D-G).
  • ✔ People with medical conditions made worse by cold homes.

Even if you don’t meet these criteria, you may still qualify under ECO4 Flex, which allows local councils to approve additional applications.

How Green Homes Group Can Help

As an ECO4-approved installer, Green Homes Group helps homeowners and tenants access the full benefits of the scheme with zero hassle.

We provide:

  • ✔ Free Eligibility Checks – Find out if you qualify within minutes.
  • ✔ Expert Home Assessments – Identifying the best energy-saving upgrades for your property.
  • ✔ Fully Certified Installations – Work carried out by TrustMark-certified professionals.
  • ✔ No Hidden Costs – Ensuring you receive the maximum funding available.

By working with Green Homes Group, you can take full advantage of the ECO4 grant and upgrade your home for free before the scheme ends.

What Does the ECO4 Grant Cover?

The ECO4 grant is designed to provide fully funded energy efficiency improvements to qualifying homes, helping homeowners and tenants reduce energy consumption, lower heating costs, and minimise their carbon footprint.

The scheme focuses on whole-house improvements, ensuring properties benefit from a combination of upgrades that make them warmer, more efficient, and cheaper to run.

Below is a detailed breakdown of what ECO4 funding covers:

1. Insulation Upgrades

Proper insulation is one of the most effective ways to prevent heat loss, improve thermal efficiency, and cut heating bills. The ECO4 scheme fully funds the installation of several types of insulation, depending on the needs of the property.

Loft Insulation

  • Prevents up to 25% of heat loss through the roof.
  • Helps keep homes warmer in winter and cooler in summer.
  • Reduces reliance on central heating, cutting energy bills.

Cavity Wall Insulation

  • Reduces up to 35% of heat loss through external walls.
  • Ideal for properties built after the 1920s with hollow wall cavities.
  • Improves energy efficiency ratings, making homes cheaper to heat.

Solid Wall Insulation (Internal & External)

  • Suitable for older homes without cavity walls.
  • Helps retain warmth, particularly in Victorian and pre-war properties.
  • Enhances the overall appearance of external walls.

Underfloor Insulation

  • Prevents cold draughts from floors, improving indoor comfort.
  • Reduces energy waste by maintaining a more stable indoor temperature.
  • Particularly useful for suspended timber floors in older homes.

By investing in insulation improvements, households can significantly reduce heat loss, making their homes warmer in winter and cooler in summer, with lower energy bills year-round.

2. Heating System Upgrades

Replacing an inefficient or outdated heating system with an energy-efficient alternative can make a huge difference to home comfort and running costs. Under ECO4, eligible households can receive fully funded heating system improvements.

New A-Rated Boilers

  • Available for homes with non-condensing boilers.
  • Improves energy efficiency by up to 90%, reducing fuel consumption.
  • Provides reliable, cost-effective heating for the long term.

High Heat Retention Electric Storage Heaters

  • A great alternative for homes without gas central heating.
  • Uses off-peak electricity to store heat for efficient daytime use.
  • Helps lower electric heating bills while improving home comfort.

Air Source Heat Pumps (ASHPs)

  • Renewable heating technology that extracts heat from the air.
  • Provides up to four times more energy efficiency than traditional boilers.
  • Cuts carbon emissions and reduces reliance on fossil fuels.

Heating upgrades ensure that homes stay warmer for longer while using less energy, helping to lower bills and improve indoor comfort.

3. Renewable Energy Installations

The ECO4 grant also funds renewable energy solutions, helping homeowners and tenants move towards a more sustainable future.

Solar Panels (Photovoltaic Systems)

  • Convert sunlight into electricity, reducing reliance on grid power.
  • Lowers electricity bills by allowing homes to generate free energy.
  • Works effectively even on cloudy days, making it a great long-term investment.

Solar Batteries

  • Stores excess solar energy for use during the evening or on cloudy days.
  • Reduces dependency on the national grid, keeping electricity costs low.
  • Ideal for homes looking to maximise their renewable energy benefits.

First-Time Central Heating

  • Available for homes that do not currently have a central heating system.
  • Ensures better heat distribution throughout the house.
  • Helps improve property value and energy efficiency ratings.

By integrating renewable energy solutions, homes can enjoy lower running costs, a reduced carbon footprint, and improved energy independence.

Who is Eligible for ECO4 Funding?

Eligibility Criteria

To qualify for fully funded home upgrades, you must meet one or more of the following conditions:

  • ✔ Receive government benefits (Universal Credit, Pension Credit, Housing Benefit, Working Tax Credit).
  • ✔ Have a household income below £31,000 per year.
  • ✔ Live in a home with an EPC rating of D, E, F, or G.
  • ✔ Suffer from a health condition worsened by cold temperatures.

ECO4 Flex – Alternative Routes to Qualification

Even if you don’t meet the standard eligibility criteria, you may still qualify under the ECO4 Flex scheme. Green Homes Group can help assess your eligibility and secure funding for your home.

How to Apply for the ECO4 Grant

Step-by-Step Application Process

  1. Check Your Eligibility – Green Homes Group offers a free eligibility check.
  2. Home Assessment – A qualified assessor will survey your home.
  3. Installation Approval – Energy companies will approve the recommended upgrades.
  4. Installation Process – Upgrades are carried out by TrustMark-certified professionals.
  5. Enjoy the Benefits – Lower energy bills, a warmer home, and reduced carbon emissions.

Are There Any Costs Involved?

The ECO4 grant is fully funded, meaning:

  • ✔ No upfront costs.
  • ✔ No repayment plans.
  • ✔ No hidden fees.

In rare cases, some homeowners may need to contribute, but this usually applies if:

  • Additional work is necessary beyond the ECO4 coverage.
  • Upgraded premium systems (e.g. high-end solar panels) are requested.

Green Homes Group ensures that all eligible upgrades are maximised under the grant, keeping out-of-pocket costs to an absolute minimum.

The Benefits of ECO4 Upgrades for Homeowners & Tenants

  • ✔ Lower energy bills – Save hundreds of pounds per year.
  • ✔ A warmer, more comfortable home – Reduce cold spots and draughts.
  • ✔ Increased property value – Energy-efficient homes are more desirable.
  • ✔ Contribute to a greener future – Reduce carbon emissions and support the UK’s Net Zero target.

Recap

What We’ve Discussed

  • ✔ The ECO4 grant provides free energy-efficient home upgrades.
  • ✔ It covers insulation, heating system improvements, renewable energy, and smart controls.
  • ✔ Eligibility is based on income, government benefits, and property energy efficiency ratings.
  • ✔ Applying for ECO4 is simple, with Green Homes Group guiding you every step of the way.
  • ✔ The scheme is fully funded, meaning most homeowners pay nothing.

Act Now – Funding is Limited!

The ECO4 scheme runs until March 2026, but allocation of funding is on a first-come, first-served basis. Don’t miss out on the opportunity to improve your home for free.

Contact Green Homes Group Today

As experts in ECO4 funding, Green Homes Group is here to help you secure your grant and ensure your home benefits from fully funded energy-saving upgrades.

Contact our team today and take the first step towards a warmer, more energy-efficient home.

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