How Much Funding Can I Expect From ECO4 Grants?

Meta: The ECO4 grant is a government-backed scheme that helps homeowners make their homes more energy-efficient and provides funds for free heating measures.

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The Energy Company Obligation (ECO)'s fourth version is live. ECO4 is a government-funded scheme that makes UK homes more energy efficient and fights fuel poverty. The scheme primarily aims to allocate funds to provide free heating grants to low-income households.

Since 2013, over 3.1 million home improvements have been made under the scheme, but this final phase will last four more years until March 2026.

By doing this, the government will be able to help vulnerable people upgrade their homes while also allowing the country to reach its net zero by 2050 goal.

Below is everything you need to know about the ECO4 grants scheme, including the amount of funding allocated for energy efficiency upgrades and who is eligible.

How Much Funding Can You Expect?

The ECO4 Scheme provides funding for installing energy-efficient measures in eligible homes.

With the ECO4 scheme, you can potentially secure free ECO funding towards home improvements for your property, which otherwise would cost anywhere between £6,000 to £20,000. These measures can include insulation, boiler and central heating upgrades, renewables like solar panels and air source heat pumps, and similar improvements to reduce energy consumption and carbon emissions.

The funding under the ECO4 scheme varies based on the type and extent of improvements implemented. For example, insulation upgrades can lead to annual heating cost savings of up to £800, while a new boiler upgrade can help save around £500 annually.

Types of Measures Funded By the ECO4 Scheme

You could get various home improvements depending on which energy supplier you go for.

Look at the key areas of interest below and the funds you can get with the ECO4 grant.

The ECO4 scheme takes a fabric-first approach, improving the building before installing new heating systems.

In fact, any home with an efficiency rating of ‘D’ or below must install loft, roof, and exterior-facing cavity wall insulation.

The government’s ECO4 scheme shows a specific interest in insulating solid walls, to carry out 22,000 solid wall insulation installments each year.

It involves filling the gaps between the walls with insulation, which prevents heat loss. The allocated fund for this measure ranges from  £500 to  £1500.

Solid wall insulation is more costly than cavity walls but provides essential energy savings. The funding ranges from  £4000 to  £14000, depending on the property size and requirements. 

Installing loft insulation can prevent heat loss. The funding for this insulation ranges from £300 to £700.

We all know the phrase ‘waste not, want not,’ right? Well, it also applies to our home appliances.

The government says, "To date, we have seen no boiler or electric storage heater repairs" through the scheme. People replace gas boilers that could be more efficient every three to eight years, a long time before their expected lifespan of  12 years they're supposed to last.

This is why ECO4 will incentivise low-income households to replace less-efficient heating systems. Replacing old, inefficient boilers can save up to £300 annually on heating bills. Typically, funding for the boiler upgrade ranges from £2000 to £4000.

Heat pumps are a more environmentally friendly option than traditional heating systems. The government has allocated  £6,000 to £10,000 funds to install heat pumps.

Who is Eligible for the ECO4 Scheme?

The government’s ECO4 scheme aims to support the country's most miniature energy-efficient homes, focusing on low-income and vulnerable households.

Eligibility criteria for the ECO4 scheme funding vary upon the following benefits:

• Homeowners or private tenants

• Households with low incomes who receive any of the specific benefits, including:

• Income-based Jobseeker’s Allowance (JSA)

• Housing Benefit

• Income-related Employment and Support Allowance (ESA)

• Income Support (IS)

• Pension Credit Guarantee Credit (PCGC)

• Working Tax Credit (WTC)

• Child Tax Credit (CTC)

• Universal Credit (UC)

• Pension Credit Savings Credit (PCSC)

• Child Benefit*

• Properties with an EPC rating of lower D, E, F, & G.

• The present boiler must be non-condensing (i.e., installed before 2005)

Maximising Energy Efficiency with ECO4 Grants

Implementing energy-efficient practices in your home can lead to significant cost savings and contribute to a more sustainable future. ECO4 Scheme provides funds for energy-efficient grants, making it easier for homeowners and tenants to reduce their energy consumption and save money.

By taking advantage of ECO4 grants, you can offset the costs associated with insulation upgrades, boiler replacements, heat pump installations, and other energy-saving measures.  ECO4 grants are designed to support individuals in their efforts to make their homes more energy-efficient. Whether a homeowner or a private tenant, these grants allow you to invest in eco-friendly upgrades that will benefit your wallet and the planet.