The Energy Company Obligation (ECO) is a government energy-efficiency scheme that requires larger energy suppliers to fund improvements in people’s homes. It aims to cut carbon emissions and tackle fuel poverty, with a focus on low-income and vulnerable households.

How ECO has changed

ECO began in 2013 and has run in four phases, ECO1 to ECO4. ECO3 came into effect on 3 December 2018. ECO4 applies to measures installed from 1 April 2022, and the ECO4 Order came into force in July 2022. Ofgem says ECO4 “will run until 31 December 2026, following a nine-month extension”. No ECO5 has been announced.

ECO is not a grant

It’s often called the “ECO grant”, but Ofgem says ECO “is not a grant scheme”. Energy suppliers decide which measures they fund, a household may be asked to contribute, and eligibility doesn’t guarantee an installation.

Who ECO4 is aimed at

ECO4 mainly helps households receiving certain benefits. Through ECO4 Flex (LA Flex), councils and the Scottish and Welsh governments can refer low-income or vulnerable households who aren’t on qualifying benefits, and suppliers can refer some households in fuel debt. Measures can include insulation and heating upgrades. See ECO4 eligibility and what LA Flex is.

The Great British Insulation Scheme

The Great British Insulation Scheme (GBIS) was a related scheme focused on insulation. It began in April 2023 and ended on 31 March 2026, and is now closed to new installations.

What you can do now

Consumer Rights can no longer help with ECO4 applications. You can apply for a free home battery or see other funding options, including the Warm Homes: Local Grant in England and the Boiler Upgrade Scheme. If you’ve already had ECO work done and something has gone wrong, see our guide to ECO4 complaints.