Energy Company Obligation Explained
The Energy Company Obligation (ECO) is a government energy efficiency scheme in Great Britain designed to tackle fuel poverty and help cut carbon emissions. It obligates energy suppliers to deliver energy efficiency and heating measures to households.
It offers Great Britain residents non-refundable financial support from your energy supplier if you choose to make your home more energy efficient.
In other words, you can have your home’s heating system or insulation upgrade fully funded through government energy grants! Read on to find out who is eligible to receive it and how UK Energy Support can help you apply and upgrade your home’s energy efficiency.
ECO is currently running on its fourth (AND LAST) version of the scheme, so make sure you apply for the grant before it’s no longer available.
We’ve covered ECO4 scheme (and its predecessor ECO3 scheme) in previous articles articles as well as Carbon Saving Obligation if you want to find out why the government implemented thi scheme in the first place.
Energy Companies Obligation Applications are now open for: April 2026
ECO4 scheme will end on 31 December 2026 with no ECO5 funding lined up to replace it. Apply while you still can!
Are you eligible for Energy Company Obligation grant?
We may be able to improve your home’s energy efficiency measures for FREE if you own/rent a property that is electrically heated and receive the correct combination of income-related benefits. You are likely to qualify if:
- You are a Homeowner or a Private Tenants
- You or your household member receives Income-Related Benefits
- Your property is electrically heated
To learn if your current energy supplier qualifies to provide ECO, contact us today.
What is ECO funding?
The Energy Company Obligation (ECO) is a government energy-efficiency scheme that requires energy suppliers to help households improve their homes. This support focuses on measures such as insulation and heating upgrades that make homes warmer, reduce energy bills, and lower carbon emissions.
Since the scheme launched in January 2013, more than 2.4 million energy-efficiency improvements have been installed in around 1.8 million homes across the UK. According to the government’s Household Energy Efficiency statistics, homes improved under ECO save an average of around £290 per year on energy bills.
What Are the Main Obligations?
The policy requires obligated energy suppliers to support low-income households in improving their home energy efficiency. This includes measures such as replacing inefficient heating systems and installing insulation to help homes stay warmer and reduce energy use.
These improvements form part of the scheme’s carbon saving obligations, which aim to lower household energy consumption and reduce carbon emissions.
How does Energy Company Obligation work?
The plan requires obligated suppliers to work with installers like UK Energy Support to increase energy efficiency in your home through insulation and electric room heaters to electric storage heaters replacement grant, among other energy saving measures.
To take advantage from the schemes, all you need is to follow these 3 steps:
Step 1 – Find out if you’re eligible
Start by answering several questions to find out if you’re eligible to receive the fund.
Step 2 – Book a Survey
Once you get a confirmation that you’re eligible, we will get in touch to book a survey of your home to find out which home improvements can be completed as part of the schemes.
Step 3 – Installation
Once it’s been confirmed that your home is suitable for improvements, all there’s left is to agree the installation date, after which you can enjoy reduced gas and electricity bills!
What is the ECO3 grant?
The ECO3 Scheme was the third phase of the Energy Company Obligation (ECO) programme. It began on 3 December 2018 and ran until March 2022, when it was replaced by the ECO4 scheme.
ECO3 focused on supporting vulnerable households and those living in fuel poverty by funding energy-efficiency improvements such as insulation and heating upgrades.
What is ECO4 scheme?
ECO4 scheme is the fourth and final phase of the Government’s Energy Company Obligation currently being rolled in and continue until 2026. It focuses on increasing the energy-efficiency rating (EPC) of properties after measures have been installed. In addition, the Government introduced a number of changes to the eligibility criteria, such as removing some disability benefits that qualify for the grant.
What is the ECO5 scheme?
The ECO5 Scheme is a possible future phase that could follow the current ECO4 programme after it ends in December 2026. However, the UK government has not yet confirmed whether ECO will continue in the same format or be replaced with a different energy-efficiency scheme.
Any future programme is expected to continue supporting improvements that help households reduce energy bills and carbon emissions, but the final structure and eligibility rules have not yet been announced.
What is GBIS?
The Great British Insulation Scheme (GBIS) is a government programme designed to help households improve their home insulation and reduce energy bills. The scheme runs alongside the Energy Company Obligation (ECO) programme but focuses specifically on insulation measures.
GBIS was introduced to help more households access support for improvements such as loft insulation and cavity wall insulation, particularly homes that may not qualify under other energy-efficiency schemes.
The scheme is expected to run until around 2026, or until the allocated funding is used, helping households reduce energy costs and carbon emissions.
What happend after March 2022?
In April 2022, the face of OFGEM’s ECO scheme began its transformation, transitioning from version 3 to 4. Under the 4th iteration, there was a pronounced emphasis on aiding the least energy-efficient homes in enhancing their heating controls. All households were mandated to adhere to the new minimum government energy efficiency scheme standards.
The Energy Company Obligation (ECO) plan persisted in its focus on lower-income, vulnerable, and fuel-poor households. However, it’s worth noting that some of the benefits that previously made households eligible for the government scheme were no longer applicable.
Which benefits no longer qualify for the funding?
Armed Forces Independence Payment
Attendance Allowance
Carer's Allowance
Constant Attendance Allowance
Disability Living Allowance (DLA)
Industrial Injuries Disablement Benefit
Personal Independence Payment (PIP)
Severe Disablement Allowance
War Pensions Mobility Supplement
Warm Home Discount Rebate
What energy efficiency improvements can be installed?
The list of improvements that energy companies could support in order to meet the targets is long. The environment energy co. obligation requirements aim to cover full costs of energy efficiency improvements. Here at UK Energy Support, we deliver:
What does the ECO scheme cover?
- Cavity wall insulation
- Loft insulation
- Internal and solid wall insulation (insulation grants)
- Heating system upgrades (free electric storage heaters)
- Room in roof insulation
- Air source heat pumps
- Solar panels
There are several factors determining whether your property is eligible for improvement, including its construction year and the number of floors it has. It also depends on whether you are a homeowner or private tenant and claim income-related benefits to take advantage of the full funding. Landlords can’t apply, however, they can encourage their tenants to do so.
Who qualifies for an ECO grant?
The government grant is only available to homeowners (or private tenants who have permission from their landlord). You can check whether you qualify for the Energy Company Obligation ECO scheme by applying below. You are under no obligation to proceed with the installation at this stage.
Who is eligible for the ECO4 scheme?
Low-income and vulnerable households are given priority. An applicant must either own their house or have the permission of their landlord in order to qualify for the fund. One of the following benefits may qualify you for the ECO:
Qualifying benefits criteria for an ECO4 grant:
Child Tax Credits
Child Benefits
Housing Benefit (NEW)
Income-based Jobseeker's Allowance
Income-based Employment & Support Allowance
Pension Credit Guarantee Credits
Pension Credit Saving Credits (NEW)
Universal Credit
Income Support
Warm Home Discount
Working Tax Credits
Can I get the home improvements for free?
Yes, that is the whole point of the Energy Company Obligation scheme. As long as you meet the above criteria, you can have your home’s heating efficiency improved free of charge. If you’re eligible for the government grant, we can replace or install new insulation of loft, cavity wall, solid/internal wall, room in roof or replace your old electric radiators with modern energy efficient heater. However, you won’t be able to reclaim money back for any measures you may have installed yourself.
How can I apply for the ECO funding?
It’s straightforward. Click on the button below to find out if you’re eligible for the grant. After verifying your answers, we will get in touch with you to advise which energy efficiency measure can be installed in your home as part of the ECO funding, so you don’t have to pay for it.
How much funding can I get?
The grant from Energy Company Obligation may as well be called Home Heating Cost Reduction Obligation because it obligates the energy providers to improve the energy-efficiency of properties. How many improvements can be introduced to your property depends on your property’s EPC rating.
If you meet certain benefits, your energy efficiency improvements can be fully paid by your energy supplier (find out more about British Gas cavity wall insulation). Get in touch for further information and find out how we can help you. The lower it is (EPC rating D and below) the more likely you are to receive the grant.
See if you qualify for Energy Company Obligation funding.
Which energy suppliers participate in Energy Company Obligation?
Medium size and large energy suppliers with more than 150,000 customers fit the government energy efficiency scheme measures through approved installers like us.
If your current energy supplier is not on the list, don’t worry, you may still qualify for the government energy support grant. Just fill in our form, and we will get back to you to confirm whether you meet enough of the other criteria to benefit from the Energy Company Obligation energy saving grant.
What is the ECOFLEX scheme (LA Flex)?
The Ecoflex or LA Flex scheme stands for Flexible Eligibility and is an extension of the Energy Company Obligation scheme in Great Britain.
LA Flex is provided through some local authorities and councils, giving them more control in deciding eligible households in their particular area; this can help people in rural areas who might be more likely to not qualify.
How does LA Flex work?
You can qualify for LA Flex if you’re not on any benefit on the grounds of your age, low income and health circumstances. Further information about LA Flex, can be found on your local council’s website.
Energy Company Obligation ECO is a government scheme
Apply Today & reduce your carbon Emissions
Here at UK Energy Support, we want to help as many people as possible improve their energy consumption. We would be happy to help you in any way we can, so get in touch and start saving on your energy bill with the funding from Energy Company Obligation.