What does eco4 grant cover?

The ECO4 grant covers the full or partial cost of qualifying energy-efficiency improvements for eligible low-income households, including insulation, heating upgrades and renewable technologies. The Energy Company Obligation (ECO4) scheme requires larger energy suppliers to fund these measures in homes with an Energy Performance Certificate (EPC) rating of D, E, F or G (GOV.UK, 2026).

Whether ECO4 covers a specific measure depends on your home’s current EPC rating, the property type and your household income or receipt of certain benefits. The scheme targets the least efficient homes first, prioritising solid-wall insulation, underfloor insulation and low-carbon heating. Private renters and homeowners are both eligible, but landlords must contribute up to one-third of the cost for rented properties. The grant does not cover general maintenance, boiler repairs or non-energy-saving work.

Insulation measures covered

ECO4 covers cavity-wall insulation, loft insulation, room-in-roof insulation, solid-wall insulation (internal and external), underfloor insulation and flat-roof insulation. For solid walls, the grant typically funds the full cost for eligible low-income households, as these measures are expensive and yield the greatest energy savings. The Energy Saving Trust states that insulating a detached home’s cavity walls can save around £395 per year on heating bills (Energy Saving Trust, 2026). All insulation must be installed by a TrustMark-registered installer to meet scheme standards (TrustMark, 2026).

Heating and renewable upgrades

ECO4 covers the replacement of inefficient electric storage heaters with high-heat-retention storage heaters or heat pumps, and the replacement of old gas, oil or LPG boilers with air-source heat pumps or ground-source heat pumps. Biomass boilers are covered only in off-gas-grid homes where heat pumps are not feasible. The grant typically covers the full cost of a heat pump installation for eligible households, including the outdoor unit, indoor controls and pipework. Ofgem confirms that ECO4 funding for heating costs up to £5,000 per property for most measures, with higher caps for solid-wall insulation (Ofgem, 2026). Solar photovoltaic panels are also covered but only when paired with a heat pump or insulation upgrade.

Who qualifies and how to apply

You qualify if you own or privately rent a home in England, Scotland or Wales and receive one of the following benefits: Universal Credit, Income Support, Pension Credit, Child Tax Credit (with income under £19,500), Working Tax Credit (with income under £19,500) or Housing Benefit. Some local authorities also offer flexible eligibility for households on low incomes not receiving benefits. To apply, contact your energy supplier directly or use the GOV.UK eligibility checker to find participating suppliers. The scheme runs until March 2026, so applications must be submitted before the deadline. There is no charge for the assessment, and the installer arranges the survey and paperwork.

A worked example

A typical 1930s semi-detached house in Manchester with an EPC rating of E gets a full package of external solid-wall insulation, loft insulation and an air-source heat pump under ECO4. The upfront cost after the BUS grant of £7,500 and the ECO4 contribution is £0 for the eligible homeowner receiving Pension Credit. The Energy Saving Trust estimates this package cuts heating bills by £1,100 per year against the old gas boiler and uninsulated walls. The property moves from EPC E to a predicted C, adding an estimated £18,000 to the home’s value according to Nationwide data. Without the grant the same work would cost roughly £18,000, so the payback is immediate for the homeowner.

What homeowners often get wrong

The most common mistake is assuming ECO4 covers any energy-saving measure you choose, regardless of your home’s current EPC rating. Here are the three biggest misunderstandings that cost people money and time

1. Assuming you can pick any measure The misconception is that ECO4 works like a voucher for any improvement you want. The reality is that the scheme only funds measures that will raise your EPC rating to a C or higher, so a home already at D might not qualify for a new boiler if loft insulation alone would do the job, and you miss out on thousands of pounds of free insulation work.
2. Thinking it covers boiler repairs or replacements Many homeowners believe ECO4 pays for a new gas boiler when the old one breaks. The right answer is that ECO4 only funds low-carbon heating like heat pumps or solar thermal, not like-for-like gas boiler swaps, so fitting a new gas boiler yourself means you lose the chance of a fully funded heat pump worth £7,500 from the BUS grant.
3. Believing landlords pay nothing A common error among private tenants is that the grant covers 100% of the cost in rented homes. The truth is that landlords must contribute up to one-third of the total cost under ECO4 rules, and if the landlord refuses, the tenant cannot proceed, which can void the entire application and waste months of planning.

Quick reference

• ECO4 covers insulation, heating upgrades and renewable technologies for homes with an EPC rating of D, E, F or G.
• The scheme is funded by the UK’s largest energy suppliers and is managed by Ofgem under the Energy Company Obligation.
• Eligibility requires household receipt of certain benefits such as Pension Credit, Income Support or Universal Credit.
• Landlords must contribute up to one-third of the cost for private rented properties, but homeowners pay nothing.
• Glazing is standard-rated for VAT at 20%. The zero rate for energy-saving materials covers insulation, heat pumps and solar panels; HMRC names secondary and double glazing as excluded (VAT Notice 708/6).