If you’re looking for government help to improve your home’s energy efficiency, you’ve probably come across both the Boiler Upgrade Scheme (BUS) and the ECO4 scheme.
Although both schemes help households reduce energy bills and carbon emissions, they work very differently. One provides a grant towards eligible low-carbon heating systems, while the other delivers fully funded energy efficiency improvements for qualifying households.
The Boiler Upgrade Scheme is a grant towards eligible heat pumps and biomass boilers. ECO4 is an energy supplier obligation that can provide fully funded energy efficiency improvements for eligible households.
What Is the Difference Between the Boiler Upgrade Scheme and ECO4?
The biggest difference is how each scheme is funded and who it is designed to help.
- Boiler Upgrade Scheme: Helps reduce the cost of installing eligible low-carbon heating systems.
- ECO4: Helps eligible households improve the energy efficiency of their homes through fully funded measures.
What Does the Boiler Upgrade Scheme Cover?
The Boiler Upgrade Scheme provides grants towards:
- Air source heat pumps
- Ground source heat pumps
- Water source heat pumps
- Biomass boilers (where eligible)
Learn more in our Boiler Upgrade Scheme guide.
What Does ECO4 Cover?
ECO4 can fund a much wider range of energy efficiency improvements, depending on the property and the household’s eligibility.
Measures may include:
- Loft insulation
- Cavity wall insulation
- Internal wall insulation
- First-time central heating
- Heating controls
- Heat pumps
- Solar panels (where appropriate)
Who Can Apply?
The eligibility rules are different.
Boiler Upgrade Scheme
- Property owners in England and Wales.
- Installer-led application.
- Property must meet scheme requirements.
ECO4
- Eligibility is usually based on household circumstances and property suitability.
- Both homeowners and private tenants may qualify.
- Some applications are supported through local authority referral routes.
If you’re unsure whether you qualify, read our Boiler Upgrade Scheme Eligibility guide.
Which Scheme Is Better?
Neither scheme is automatically better—it depends on your circumstances.
The Boiler Upgrade Scheme may suit households looking to install an eligible heat pump and contribute towards the installation cost.
ECO4 may be more suitable if you’re eligible for fully funded energy efficiency improvements.
Can You Use Both Schemes?
Whether the two schemes can be used together depends on the eligibility rules in force and the improvements being installed.
Before committing to any work, speak with your installer or scheme provider to understand which funding options are available.
People Also Asked
Is ECO4 better than the Boiler Upgrade Scheme?
They are different schemes with different eligibility criteria and objectives. The best option depends on your property and circumstances.
Can I get a free heat pump through ECO4?
Some eligible households may receive a heat pump through ECO4 where it is considered an appropriate measure.
Does the Boiler Upgrade Scheme cover the whole installation cost?
No. It provides a grant towards the installation cost. You may still need to contribute towards the remaining balance.
Additional Reading
- Boiler Upgrade Scheme
- Boiler Upgrade Scheme Eligibility
- How To Apply For The Boiler Upgrade Scheme
- ECO4 Scheme
- Warm Homes Loan Scheme vs Boiler Upgrade Scheme
Sources
- GOV.UK – Boiler Upgrade Scheme
- Ofgem – Boiler Upgrade Scheme
- Ofgem – Energy Company Obligation (ECO4)
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