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Understanding the ECO Funding
Scheme: Everything You Need to Know

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Understanding the ECO Funding Scheme

The Energy Company Obligation, also known as ECO, is more than just another government initiative – it is a game-changer for homes in England, Scotland, and Wales that aren’t currently energy efficient. 

​Since its launch in 2013, ECO has transformed over 2.4 million homes with energy-efficient improvements like insulation, central heating and renewable measures such as solar panels. But what is it, and more importantly, how can you benefit?

Understanding the ECO Funding Scheme

The ECO funding scheme places an obligation on energy companies to help make homes throughout the UK more energy efficient. This not only helps homeowners and tenants to afford to heat their homes but also supports the Government’s larger goal of reducing carbon dioxide emissions. 

One of the most beneficial aspects of the ECO funding scheme is that it provides lifelong savings by installing energy efficiency improvements. And the proof of its success so far is in the numbers. According to government figures from February 2023, over 3.6 million energy saving measures have been implemented under the ECO initiative. 

Do You Qualify for the ECO4 Funding Scheme?

The ECO4 scheme isn’t available for everybody, but we can advise as to whether you will qualify. We should state early on that we are only able to obtain funding for privately owned homes (including privately rented properties).

If you live in social housing or council housing you should contact your landlord / housing provider as they will have access to other funding initiatives.

To qualify for the ECO funding scheme, at least one resident in the property should be in receipt of one of the following tax credits or benefits:

  • Universal Credit
  • Child Tax Credit
  • Working Tax Credit
  • Housing Benefit
  • Income Support
  • Pension Credit Savings Credit
  • Pension Credit Guarantee Credit
  • Income-based Jobseekers Allowance
  • Income-related Employment & Support Allowance
Child Benefit also serves as a route to qualify. However, eligibility for the scheme depends on the number of children in the household and the gross household income received. Please see the table below for more details about the thresholds.

It’s also important to point out that all is not lost if you don’t receive any of the benefits above. You could still secure funding via other energy efficiency schemes, such as the Local Authority Flexible funding scheme  or the Great British Insulation Scheme.

What Energy Saving measures are offered via the ECO Grant Scheme?

There is a wide variety of energy saving measures available under the ECO4 scheme, including:
Electric Storage Heaters: High Heat Retention storage heaters which utilise cheaper electricity during off-peak times and release the heat slowly throughout the day.
Boilers: If the property has a non-condensing boiler, we may be able to obtain funding to exchange it for an energy efficient condensing boiler.
External Wall Insulation: this work involves installing insulation boards and rendering the outside walls of the property. This is not suitable if the property is a listed building or in a conservation area.
Loft Insulation: Adds or upgrades insulation in the attic to retain heat within the property.
Internal Wall Insulation: This work involves installing insulation and plasterboard on the inside of the external walls of the property, to reduce heat loss through the walls.
Cavity Wall Insulation: Insulates the gap between external and internal walls.
Gas Central Heating: There is funding available if there are currently no radiators in your property and the property has an existing gas meter.
Air Source Heat Pump: Harnesses heat from the external environment to provide hot water and central heating for the home.
Solar PV : Renewable technology that converts sunlight into electricity.
Room In Roof Insulation: Used to insulate a loft that’s been converted into a room.

All energy saving measures provided via the ECO funding scheme will be tailored to your home’s needs. This will be determined through a comprehensive, no obligation retrofit survey. The survey will assess which measures your home will benefit the most from and will also highlight any defects in the property which would need to be rectified before any energy saving measures could be installed.

For example the survey may highlight leaking gutters which would need to be fixed before the walls could be insulated, or broken tiles which would need to be replaced before solar panels could be installed. 

Find Out If You Qualify For Free Energy
Efficiency Improvements

If you’d like to find out more about the ECO funding scheme and the energy efficiency grants available to you, use our free Eligibility Grant Checker below. One of our dedicated and experienced energy advisors will be in touch to give you further guidance.

Useful Resources

Office of Gas and Electric Markets (OFGEM)

House of Commons Library – ECO scheme

Check Your Eligibility Using Our Grant Checker

Please ensure that all information provided below is 100% accurate. Any errors in your personal information could delay or prevent you qualifying for a government funded grant 

Please note that you do not necessarily need to be in receipt of tax credits or benefits as we still may be able to obtain funding for you via your Council or through other funding schemes.  



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