Energy Company Obligation (ECO4)

Through this scheme, each major energy company contributes money towards funding a range of energy efficiency upgrades to low-income and vulnerable homes across the country.

What you need to know

Since April 2022, the UK government has implemented the fourth iteration of the Energy Company Obligation (ECO4). This scheme works closely with Ofgem, the UK’s independent energy regulator, to ensure that our major energy companies are obliged to reduce household heating costs and contribute towards reducing our national carbon footprint.

Through this scheme, each major energy company contributes money towards funding a range of energy efficiency upgrades to low-income and vulnerable homes across the country. The scheme is expected to run until the end of March 2026.

Upgrades you could receive

Through ECO4, you can receive a wide range of energy efficiency upgrades to improve your home. These can include, but are not limited to:

  • insulation (floor, loft and wall)
  • a new combination boiler (only when replacing an inefficient non-condensing boiler)
  • an air or ground source heat pump
  • smart heating controls
  • solar PV
  • double or triple glazing
  • high performance external doors

The exact measures you can qualify for will depend on personal circumstances, in addition to what work your installer is qualified to undertake. We cannot guarantee that any of the above measures will be available for install at your property.

Eligibility

To qualify for ECO4, you must first live in a suitable property. If you’re an owner-occupier, your home must have an Energy Performance Certificate (EPC) rating of D or below. However, if you’re a tenant, or a landlord looking to receive improvements for your tenant, your property’s EPC must be E or below. You can find your property’s EPC at GOV.UK: find an energy certificate. If your property does not have a current EPC, your chosen installer may complete one for you.

Qualifying for ECO4

If your property is eligible, you can qualify for ECO4 through a member of your household receiving one of the following benefits: 

  • Income-based Jobseekers Allowance (JSA)
  • Income-related Employment and Support Allowance (ESA)
  • Income Support (IS)
  • Pension Credit
  • Working Tax Credit (WTC) or Child Tax Credits (CTC)
  • Universal Credit (UC)
  • Housing Benefit
  • Child Benefit

Any installation through ECO4 will require you to provide proof that you receive your qualifying benefit, typically by agreeing to a check through the Department of Work and Pensions.

Qualifying for ECO4 Flex

To allow more people to access energy efficiency upgrades through ECO4, the Local Authority Flex scheme (ECOFlex), allows local authorities to widen the eligibility criteria for ECO4. Through ECOFlex, Sheffield City Council can also approve installations for applicants with a low household income or a health condition that could be negatively affected by the cold. In addition to meeting the household EPC criteria described above, you must either: 

  • have a gross household income of under £31,000 per year
  • have a member of your household affected by an illness that could be impacted by the cold – this could be cardiovascular or respiratory disease, limited mobility or an immune suppression disease

As with ECO4, qualification through ECOFlex will require an income check or confirmation of illness from your GP.

How to apply

Unlike many other energy efficiency grants, ECO4 is an installer-led scheme. This means that while Sheffield City Council authorises applications through ECOFlex, we don’t deliver the schemes directly. To begin an application, you’ll need to contact your chosen installer directly and request a consultation. If your installer wishes to work on your property through ECO, they will work through the application stages with you. They will apply on your behalf, confirm that you are eligible, and collect proof.

If you’re applying through the standard ECO4 pathway, most installers will be able to take your application. However, if you believe you qualify for funding under the ECOFlex pathway, you’ll need to contact installers who have onboarded with our delivery partner. If you’re interested in taking this option, get in touch with us, and we will direct you towards the appropriate installers.

Even if you’re eligible for funding, an installer can refuse to work on your home for any reason. If this happens, contact other installers as they may be willing to complete the work.