The Energy Company Obligation 4 (ECO4) is an energy efficiency initiative mandated by the UK government and funded by major energy providers in the country. These providers are required by the regulatory authority, Ofgem, to undertake a specified number of home retrofit projects annually, as part of their obligations.
Eligibility for ECO4 and ECO4Flex is based on a household’s financial situation, and the current energy efficiency rating of their property (EPC). Only homeowners and private tenants are eligible; and tenants must have the support of their landlord. Improvements might include heating, insulation and solar panels, and the programme is expected to continue until March 2026. This is an installer led programme, so often people are finding out about this through direct marketing from installers.
Eligibility: ECO4 and ECO4Flex
Eligibility is dependent on income and energy performance rating of the home.
A properties Energy Performance Certificate (EPC) must meet these requirements:
-
Homeowners - Band D - G
-
Private tenants - Band E - G
You can find your properties EPC online here. If you do not have a certificate, an installer, if interested in doing works on your property, may complete one for you.
There are two income pathways to qualify for ECO funding:
Qualifying through receipt of benefits – ECO4
To be eligible under this pathway at least one member of your household must be in receipt of any of the following benefits, which are expected to qualify for grants under ECO4:
-
Income-based Jobseekers Allowance (JSA)
-
Income-related Employment & Support Allowance (ESA)
-
Income Support (IS)
-
Pension Credit
-
Working Tax Credit (WTC) or Child Tax Credits (CTC)
-
Universal Credit (UC)
-
Housing Benefit
-
Child Benefit
When applying for ECO4, your selected installer or supplier will guide you on obtaining evidence of the eligible benefits claimed within your household. Typically, this can be accomplished by consenting to a check through the Department for Work and Pensions.
If any member of your household meets the criteria listed above, you will need to submit your application directly to your preferred installer using this pathway.
ECO4 Flex
The local authority flex scheme allows more local authorities to widen ECO eligibility criteria. This means that they can use the funding to help more people in need.
You may qualify for the funding if the following statements apply:
-
You have an EPC rating of D – G or E- G as a private tenant.
And either you:
Have a total household annual income of £31,000 or less (before housing costs/bills)
Or
A member of your household has an illness that is affected by the cold such as:
Respiratory
Cardiovascular
Immune suppression
Limited mobility
