The ECO4 solar panel scheme: explained

The ECO4 scheme gives fuel-poor households in the UK an opportunity to upgrade their home's energy efficiency and cut their energy bills. It covers various measures including solar panels, insulation, and heat pumps.

In this guide, we’ll explore how this government initiative works, whether you might qualify, and how many people have already used ECO4 to switch to solar. 

Unfortunately, the majority of UK households do not qualify for ECO4 funding, and those that do can only get solar if their primary source of heating is powered by electricity. 

If you’re looking to switch to solar but you’re put off by the high upfront cost, consider Sunsave Plus, which is the UK’s first solar subscription, and it means you can go solar with no upfront cost. 

To find out how much you could save with Sunsave Plus, answer a few quick questions below and we’ll provide an estimate.

What is the ECO4 scheme?

Starting in April 2022, the Energy Company Obligation (ECO4) scheme is the fourth phase of a UK government initiative aimed at tackling fuel poverty in lower income and vulnerable households.

ECO4 continues the vital work of ECO1, ECO2, and ECO3 to unlock energy-saving measures for homes across the country, ensuring they benefit from warmer temperatures and reduced energy bills.

This is very important work, considering 13% of homes in England (around 3.17 million) were struggling to pay for heating in 2023.

Ofgem administers ECO4 on behalf of the Department for Business, Energy & Industrial Strategy (BEIS), and the scheme is part of the UK’s broader strategy to meet its net-zero carbon emissions target by 2050.

What does ECO4 cover?

ECO4 covers a wide range of measures designed to improve the energy efficiency of fuel-poor homes.

Any energy company with more than 150,000 customers is automatically an ‘obligated supplier’, which means they’re responsible for delivering these measures and they have set targets to meet under the scheme.

The list of available ECO4 measures does include solar panels, but they're only available if they will reduce your property's heating costs.

As Ofgem explains: “Solar PV is an eligible heating measure where the heating system in the property, either before the ECO4 project starts or installed as part of the project, is a hydronic heat pump, high heat retention electric storage heaters or an electric heating system”

Other measures include:

• Loft insulation, cavity wall insulation, and solid floor insulation
• New or upgraded boilers with modern heating systems and thermostats, including adding first-time central heating or replacing a broken system
• Connection to a district heating system

Any obligated supplier can deliver these measures to eligible households in England, Wales, and Scotland, regardless of who supplies their energy. 

So, for example, your supplier might be Octopus Energy, but you’d be able to apply for ECO4 funding from British Gas, if you wanted to.

How much funding does ECO4 provide?

The ECO4 scheme is backed by £4 billion of government funding and runs until March 2026. However, it isn't a traditional grant scheme, in that the funding isn’t given to homes directly from the government - instead, the government distributes the funds through the aforementioned obligated suppliers.

Ultimately, it's down to the energy suppliers to decide which retrofit projects to fund, the scope of funding they'll provide, and the installers or retrofit coordinators they work with.

The amount of funding you could receive depends on the type of energy efficiency measures the supplier approves for your home, as well as other factors like your property’s condition and its Energy Performance Certificate (EPC) rating.

And, in some cases, the suppliers could ask you to cover a portion of the costs.

Since funding levels and contributions vary between companies, it’s important to compare offers to find the best deal. Ofgem doesn't get involved with consumer contributions, so it's up to you to choose an offer you're happy with.

How is it decided which measures you receive?

As we briefly discussed above, the obligated energy suppliers decide which measures they'll fund, but there is guidance set by the government which suppliers must follow.

You can view the full list of technical criteria here (although it's not something the average homeowner needs to fully understand). 

As complex as the rules may seem, the most important principles are straightforward: all measures (including solar panels) must reduce the cost of heating a household, and measures can't rely on coal, biofuel, oil, LPG, or any other non-renewable energy sources.

If you don't think you'll qualify for solar panels via ECO4 and you're put off by the high upfront cost of solar, consider Sunsave Plus. This is the UK's first solar subscription, and it means you can switch to solar with no upfront cost.

Just provide a few details below and we'll get back in touch with a savings estimate.

How many homes have got solar through ECO4?

While solar PV systems are indeed a part of the ECO4 scheme, they currently make up a relatively small proportion of the measures implemented. 

As of February 2025, obligated energy suppliers have delivered 38,005 solar panel installations. That's just 5.75% of the 660,487 measures provided under ECO4 so far.

This reflects how other energy-saving improvements, like insulation and heating upgrades, are the key focus of the scheme.

Most common ECO4 measures, Jul 22 - Sep 24

Who are the ECO4 Obligated Suppliers?

Any energy supplier with more than 150,000 customers must take part in ECO4, as part of their Home Heating Cost Reduction Obligation (HHCRO). Ofgem maintains the list of obligated suppliers, and naturally it includes the largest energy companies in the UK.

Here’s the full list:

• British Gas
• E (Gas & Electricity)
• E.ON
• Ecotricity
• EDF
• Octopus Energy
• Outfox the Market
• OVO
• Scottish Power
• So Energy
• The Utility Warehouse
• Utilita Energy

ECO4 eligibility criteria

There are a few ways to get ECO4 funding. You could be eligible if you get certain benefits, are considered to be in fuel poverty, or meet other specific requirements.

Let's explore the main eligibility routes.

1. Receive certain benefits

One of the key routes to qualifying for ECO4 funding is being part of the Help To Heat Group (HTHG), which targets low-income or vulnerable households.

To be eligible, you must receive at least one of the 10 qualifying benefits under the HTHG:

• Income-based Jobseeker’s Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)
• Income Support
• Pension Credit (Guarantee Credit)
• Universal Credit
• Child Tax Credit
• Working Tax Credit
• Housing Benefit
• Pension Credit (Savings Credit)
• Child Benefit (subject to income caps that depend on who lives with you)

Getting one of these benefits could mean free (or low-cost) energy efficiency upgrades for your home via ECO4.

2. Live in social housing with low energy efficiency

If you live in social housing, you could qualify for ECO4 funding if your property has a low energy efficiency rating (EPC band D, E, F, or G) and your rent is below market rates.

The measures you can get will depend on your property’s EPC rating. If it has a rating of D, your property will only be eligible for insulation and innovation measures that meet the Minimum Insulation Requirements, but not other upgrades.

But if your home's between the EPC bands of E and G, you could be eligible for insulation, first-time central heating, renewable heating including heat pumps and solar, district heating connections, and a wider range of innovation measures.

3. LA Flex

ECO4 Flex allows local authorities (LAs), the Scottish and Welsh governments, and energy suppliers themselves to identify households that meet specific eligibility criteria outside of the standard routes.

Under this scheme, LAs use four defined routes to determine who qualifies, focusing on those in vulnerable situations or at risk of fuel poverty. These include:

1. Households with a gross annual income of less than £31,000
2. Households that get financial help because they're on a low income or are considered vulnerable (this also includes those who have had fuel debt with a supplier for over 13 weeks, or are in a debt repayment plan)
3. Households with people living with long-term medical conditions that will worsen in a cold home
4. Other specific qualifying criteria identified by the LA

If your household falls under one of the above, your LA will usually contact you and refer you for the scheme. But you can always get in touch with them directly to see if you could qualify - and with up to half of ECO4's funding set aside for LA Flex, it’s definitely worth investigating.

Just so you know: your eligibility doesn't guarantee support, as energy companies ultimately decide which projects to fund and how much funding to provide.

4. In-fill properties

Lastly, if your household doesn’t meet the standard ECO4 criteria, you could still potentially qualify through the in-fill mechanism, which is designed to ensure fair distribution of benefits within communities.

In-fill measures make upgrades available to additional properties on the same street, in the same building, or within the same block as eligible households. Though the rules for in-fill are different for flats and houses.

One in-fill flat can also get upgrades for every eligible flat in the same block or building. In-fill flats can get solid wall insulation, cavity wall insulation, or district heating system connections.

In contrast, one in-fill house on the same street can get measures for every three eligible houses, and in-fill houses can only receive solid wall insulation or district heating system connections.

How to apply for ECO4

If you meet the requirements for ECO4 funding, your first step is to contact at least one of the obligated suppliers (listed above). Remember: you’re not restricted to your current energy supplier - you can choose any supplier involved in the scheme.

What if an installer approaches me offering ECO4 measures?

In some cases, a retrofit coordinator or installer could approach you directly with an offer to install energy efficiency measures as part of an ECO4 project, even if you haven’t applied yourself.

From January 2020, all installers delivering ECO measures must be TrustMark registered or equivalent. So if you get approached, always ask for credentials, like a TrustMark registration number, and make sure they're certified for the specific measure being installed.

For example:

• All installations should have a Publicly Available Specification (PAS) certification
• Solar and heat pump installers should be Microgeneration Certification Scheme (MCS) certified
• Gas boiler repairs or replacements need a Gas Safe registration

If in doubt, you can verify most credentials through the relevant regulatory body’s website.

Next steps

The ECO4 scheme provides a fantastic chance for qualifying households to boost their energy efficiency and cut costs via various funded upgrades, including solar panels.

If you think you won’t qualify for ECO4 but want to know how much a solar & battery system could save you, pop in a few details below, and we’ll provide you with an estimate.

ECO4: FAQs