The Energy Company Obligation (ECO4)


The UK government’s The Energy Company Obligation (ECO4) Scheme subsidy programme aims to increase residential energy efficiency while lowering carbon emissions. Energy firms, who are obligated to donate a specific amount of money each year toward energy-saving measures, are the source of funding for the scheme, which was launched in 2013.

Low-income homes and those in most needs of energy efficiency upgrades are the focus of the ECO4 financing. It is intended to assist these households in lowering their energy costs, enhancing the warmth and comfort of their houses, and lowering their carbon emissions.

Insulation, boilers, and heating controls are just a few of the energy-saving technologies that can be installed with the help of ECO4 financing.

Numerous low-income households have found success using the ECO4 grant programme to improve the energy efficiency of their homes. However, others have argued that the investment is insufficient to handle the scope of the energy efficiency crisis the UK is facing.

Despite this, the UK’s attempts to increase energy efficiency and lower carbon emissions continue to rely heavily on the ECO4 funding programme. As the government strives to achieve its ambitious climate change targets, it is likely to remain a crucial component of the UK’s energy strategy in the years to come.

You must fulfil specific requirements in order to be eligible for the UK’s ECO4 (Energy Company Obligation) programme. These requirements are intended to make sure that the cash is directed toward individuals who will gain the most from the programme and who have the greatest need for energy efficiency upgrades.

When applying for the ECO4 programme, you must:

  • seek your landlord’s approval if you rent it out either privately or as a social housing tenant and claim benefits, such as the Universal Credit, Child Tax Credit, or Pension Credit.
  • live in a house with ineffective insulation or a heating system
  • be on a low fixed income.

You might be qualified for the ECO4 programme if you meet these requirements. and must speak with an accredited contractor who is enrolled on the programme if you want to apply for the grant.

If your home qualifies for energy efficiency upgrades, the contractor will evaluate it and assist you in submitting an application for funding. 

The ECO4 programme is competitive, therefore not every home that applies for financing will be accepted.

ECO4 is backed by large and medium energy suppliers. They have legal obligations under the Energy Company Obligation (ECO) scheme. This includes companies like British Gas, EDF Energy, E.ON, Scottish Power, and Octopus Energy.

For more information please go to the government’s Ofgem website. 
Ofgem Eco