ECO4 Home Improvement Grant: Everything You Need to Know in 2024

The ECO4 home improvement grant is a government initiative designed to help households across the UK improve their energy efficiency. As an energy consultant who has helped hundreds of homeowners access this funding, I can tell you that understanding how the ECO4 scheme works is essential if you want to reduce your energy bills and make your home more environmentally friendly. The ECO4 scheme runs from 2022 to 2026 and focuses primarily on helping low-income households and those living in energy-inefficient properties.

What Exactly is the ECO4 Home Improvement Grant?

The ECO4 home improvement grant is the fourth iteration of the Energy Company Obligation scheme. It requires large energy suppliers to fund energy efficiency measures in eligible households. The program aims to tackle fuel poverty while reducing carbon emissions from UK homes. Unlike previous versions, ECO4 takes a whole-house approach, focusing on bringing properties up to at least EPC band D.

Who is Eligible for the ECO4 Home Improvement Grant?

Eligibility for the ECO4 grant typically includes households that:

• Receive certain benefits such as Universal Credit, Pension Credit, or Child Tax Credits
• Live in properties with EPC ratings of E, F, or G
• Fall under the ECO4 Flex scheme via local authority referrals
• Are considered low-income or vulnerable households
• Live in social housing with poor energy efficiency ratings

The scheme prioritizes those most in need of energy efficiency improvements and those living in the coldest, least efficient homes.

What Home Improvements Does ECO4 Cover?

The ECO4 home improvement grant can fund a variety of energy efficiency measures:

• Insulation (cavity wall, solid wall, loft, room-in-roof)
• Heating system upgrades or replacements
• Renewable heating technologies like heat pumps
• Solar panel installations
• Energy efficient windows and doors
• Smart heating controls

Unlike previous schemes, ECO4 focuses on making multiple improvements to achieve significant energy efficiency gains rather than standalone measures.

How Much Funding Can I Get Through ECO4?

The ECO4 home improvement grant does not have a fixed value per household. Instead, funding depends on:

• The current energy efficiency of your home
• The improvements needed to reach EPC band D or higher
• Your personal circumstances and eligibility criteria
• The energy supplier delivering the scheme

Some households may receive improvements worth several thousand pounds, particularly those requiring major work like solid wall insulation or renewable heating systems.

How Do I Apply for the ECO4 Home Improvement Grant?

The application process for ECO4 is straightforward:

• Check your eligibility through the Simple Energy Advice service
• Contact energy suppliers directly or use an approved ECO4 installer
• Arrange a home assessment to determine suitable improvements
• Receive a recommendation report outlining eligible measures
• Approve the work and arrange installation dates

I always advise my clients to get multiple quotes from different providers as the offerings can vary significantly.

Is ECO4 Different from Previous Energy Efficiency Schemes?

Yes, ECO4 home improvement grant differs from earlier schemes in several key ways:

• It takes a whole-house approach rather than focusing on individual measures
• Properties must achieve a minimum improvement in energy efficiency
• There is greater emphasis on helping those in fuel poverty
• The scheme incorporates more renewable technologies
• Local authorities have more input through the ECO4 Flex referral system

This comprehensive approach aims to make more meaningful improvements to the UK housing stock.

Are There Any Restrictions on ECO4 Funding?

While the ECO4 home improvement grant is generous, it does come with some limitations:

• Not all properties are eligible, particularly newer or already efficient homes
• Some measures may require partial homeowner contribution
• The scheme prioritizes certain measures over others
• There may be regional variations in availability and funding
• The application process can be competitive in some areas

Understanding these restrictions can help set realistic expectations about what the scheme can offer you.

How Does ECO4 Compare to Other Government Energy Schemes?

The ECO4 home improvement grant works alongside other government initiatives:

• It offers more comprehensive support than the Green Homes Grant voucher scheme
• Unlike the Boiler Upgrade Scheme, ECO4 covers a wider range of improvements
• The Home Upgrade Grant often works in tandem with ECO4 for deeper retrofits
• Social Housing Decarbonisation Fund focuses on different property types

For many households, ECO4 represents the most accessible route to significant energy efficiency improvements.

What Results Can I Expect from ECO4 Improvements?

After implementing ECO4 funded improvements, households typically experience:

• Reduced energy bills by up to 30 percent
• Improved thermal comfort and warmer homes
• Better EPC ratings, increasing property value
• Reduced carbon emissions
• Decreased risk of condensation and damp issues

The whole-house approach means these benefits are often more substantial than with previous schemes.

Will ECO4 Continue Beyond 2026?

While the current ECO4 home improvement grant is scheduled to run until March 2026, the government has indicated that energy efficiency will remain a priority. Future iterations may evolve to meet changing climate targets and energy needs. If you are considering applying for ECO4, I would recommend doing so sooner rather than later to ensure you can benefit from the current funding round. The scheme represents a significant opportunity for eligible households to improve their homes at minimal or no cost.

Written by Phil Owen owner of Green Assess