The ECO4 heat pump grant covers most of the cost
The Energy Company Obligation (ECO4) scheme provides funding for a heat pump installation in eligible UK homes, typically covering the majority of the upfront cost. Homeowners should expect to contribute a portion of the cost; the grant is not a full subsidy for all households. The amount you pay depends on your property’s current heating system, insulation levels, and the specific heat pump model chosen. The scheme is administered by energy suppliers, not the government directly, and is funded through a levy on energy bills (Ofgem, 2026).
Quick numbers ECO4 heat pump grant funding and typical homeowner costs
The table below shows typical costs and savings for an ECO4 heat pump installation in 2026. Your actual figures will vary based on your property size, existing heating system, and energy tariff.
| Item | ECO4 grant estimate | Typical out-of-pocket cost for eligible homeowner |
|---|---|---|
| Grant maximum (via BUS, not ECO4) | £7,500 flat grant | Not applicable |
| Average homeowner contribution | £500–£2,000 | £500–£2,000 |
| Typical heat pump system cost | £8,000–£14,000 | Grant covers 70–90% of total |
| Average annual heating bill saving | £300–£600 | Varies by tariff and usage |
Source: Energy Saving Trust, 2026; DESNZ, 2026.
To qualify for the ECO4 heat pump grant
Eligibility is primarily means-tested: you must be receiving specific income-related benefits (e.g., Pension Credit, Universal Credit, Income Support) or have a household income below a set threshold (e.g., £31,000 gross for England and Wales as of 2026). Homeowners in Scotland and Wales may have slightly different benefit rules; check the local scheme variant (ECO4 Scotland, ECO4 Wales). The property must also have a valid Energy Performance Certificate (EPC) rating of E, F, or G, or be in a low-income area with poor energy efficiency (GOV.UK, 2026).
If you do not meet these criteria, you are not eligible for ECO4. In that case, the Boiler Upgrade Scheme (BUS) offers a separate, non-means-tested grant of £7,500 for heat pumps in England and Wales (GOV.UK, 2026).
The ECO4 grant covers a full heat pump system
The grant funds a complete air source heat pump system, including the outdoor unit, indoor unit, hot water cylinder (if needed), and installation labour. Your home must have adequate loft and cavity wall insulation (or be part of a package that includes insulation upgrades) to be eligible. The installer must conduct a heat loss survey to confirm the heat pump can meet your heating demand; properties with very high heat loss may need insulation first (MCS, 2026).
If your home lacks basic insulation, the ECO4 scheme can fund insulation upgrades alongside the heat pump. This is a key difference from the Boiler Upgrade Scheme, which does not require insulation improvements. However, the installer must confirm the property is suitable before proceeding (Energy Saving Trust, 2026).
The ECO4 heat pump grant is separate from the Boiler Upgrade Scheme (BUS)
The Boiler Upgrade Scheme (BUS) offers a flat £7,500 grant for heat pumps in England and Wales, but it is not means-tested and is available to all homeowners. ECO4 is means-tested and targets low-income households; you cannot combine ECO4 funding with the BUS for the same heat pump installation. If you are eligible for both, ECO4 is typically more generous (covering a larger share of the cost) but requires meeting the income criteria (GOV.UK, 2026).
If you are not eligible for ECO4 due to income, the BUS remains your best option. If you are eligible for ECO4, you should apply through your energy supplier first, as the grant covers a larger portion of the total cost. Compare ECO4 and Boiler Upgrade Scheme grants side by side
You must use an MCS-certified installer to keep your ECO4 heat pump grant valid
All heat pump installations under ECO4 must be carried out by an installer certified under the Microgeneration Certification Scheme (MCS) or equivalent. The installer must also be registered with TrustMark, the government-endorsed quality scheme for home improvements. To verify an installer, search the MCS register online (mcscertified.com) or check TrustMark’s directory; your energy supplier may also provide a list of approved installers (MCS, 2026).
Using an uncertified installer invalidates the grant. You would then be liable for the full installation cost, which typically ranges from £8,000 to £14,000. Always confirm your installer’s MCS and TrustMark status before work begins (TrustMark, 2026).
The direct answer ECO4 provides a heat pump grant for low-income UK homeowners, covering most installation costs, but you must meet benefit or income thresholds
The ECO4 heat pump grant is available to UK homeowners on qualifying benefits or low incomes, covering the bulk of a heat pump system’s cost. The grant does not cover 100% of the cost; expect a contribution of a few hundred to a few thousand pounds depending on your home. You cannot switch from a gas boiler to a heat pump under ECO4 without first improving your home’s insulation (Ofgem, 2026).
To apply, contact your energy supplier directly. They will assess your eligibility, arrange a home survey, and coordinate the installation with an MCS-certified installer. Step-by-step guide to applying for the ECO4 heat pump grant
Frequently Asked Questions
Yes, if your household receives income-related benefits like Pension Credit or Universal Credit, or your gross income is below £31,000 (England and Wales, 2026). Your property must also have an EPC rating of E, F, or G, according to GOV.UK.
The ECO4 scheme typically covers 70–90% of the total heat pump installation cost, which ranges from £8,000 to £14,000. Homeowners usually pay £500–£2,000 out-of-pocket, based on Energy Saving Trust data.
No, the ECO4 grant is separate from the Boiler Upgrade Scheme (BUS), which offers a flat £7,500 grant for heat pumps in England and Wales. ECO4 is income-based and administered by energy suppliers, as confirmed by Ofgem.
Yes, Scotland has its own variant of the ECO4 scheme with slightly different benefit rules. Homeowners should check the local programme details via their energy supplier or the Energy Saving Trust for Scotland.
Apply directly through your energy supplier, not the government. You will need to provide proof of income or benefits and an up-to-date Energy Performance Certificate. Ofgem oversees the scheme and can confirm your supplier's obligations.
