ECO4 Has Ended — What Replaces It?

The Energy Company Obligation 4 (ECO4) closed to new applicants on 31 March 2026. If you applied before the deadline, your application and any approved measures continue to be delivered — but no new applications are being accepted.

This guide explains exactly what has replaced ECO4, which schemes are open now, and what’s coming next.

Quick Summary: What Replaces ECO4?

What Was ECO4?

ECO4 (the fourth phase of the Energy Company Obligation) ran from 2022 to 31 March 2026. It obliged large energy suppliers to fund energy efficiency improvements — including boiler replacements, solar panels, heat pumps, and insulation — for qualifying households. Over its lifetime, ECO4 delivered over £4 billion in funded improvements to low-income and vulnerable homes.

Households qualified under three main routes:

1. Receipt of qualifying benefits (Universal Credit, Pension Credit, Income Support, etc.)
2. Low income via LA Flex — household income below ~£31,000, referred by a local authority
3. Direct referral from a local authority or energy supplier

ECO4 was the primary route to a free boiler replacement and, in some cases, free solar panels for households that couldn’t afford them outright.

What Replaces ECO4 Now?

1. Warm Homes: Local Grant — The Direct Replacement

The Warm Homes: Local Grant is the government’s new flagship scheme for low-income and vulnerable households, designed to pick up where ECO4 left off. It funds energy efficiency improvements — including insulation, heating upgrades, and in some cases solar PV — for households that meet income and property criteria.

Key differences from ECO4:

• Higher income threshold: Approximately £36,000/year (up from ~£31,000 under ECO4 LA Flex), meaning more households qualify
• Up to £15,000 per household in funded improvements
• Local authority delivery: Councils help identify and refer eligible households, similar to ECO4 LA Flex
• Whole-house approach: Measures are chosen based on what improves the home’s EPC rating most cost-effectively

What it can fund:

• Boiler replacement (where a new boiler is the most appropriate measure)
• Heat pump installation
• Insulation (loft, cavity wall, solid wall)
• Solar PV (as part of a whole-house package)
• Heating controls and ventilation

Who qualifies:

• Household income below ~£36,000/year
• EPC rating D, E, F, or G
• Owner-occupied or private tenant (with landlord permission)
• Vulnerable to cold (elderly, disabled, young children, long-term illness)

2. Boiler Upgrade Scheme (BUS) — For Heat Pumps

The Boiler Upgrade Scheme is open to all homeowners in England and Wales with a fossil-fuel boiler, regardless of income. It provides:

• £7,500 towards an air source or ground source heat pump
• £5,000 towards a biomass boiler (rural properties only)

The grant is applied directly to your quote by an MCS-certified installer — there’s no paperwork for you to handle. The scheme runs until 2028.

BUS doesn’t provide a free gas boiler replacement (as ECO4 did), but it makes a heat pump comparable in upfront cost to a new gas boiler. For households that don’t qualify for the Warm Homes: Local Grant, BUS is the most accessible government support for heating upgrades.

3. Smart Export Guarantee (SEG) — Income From Solar

If you have (or install) solar panels, the SEG pays you for surplus electricity you export to the grid. Rates range from 1p to 15p per kWh, with typical annual earnings of £80–£200 for a 4kW system. You need an MCS-certified installation and a smart meter.

4. Solar Together — Group-Buying Discount

Solar Together is a collective purchasing scheme run by participating local councils. It uses bulk-buying power to negotiate 20–30% discounts on solar panel installations. It’s open to everyone regardless of income, with no eligibility criteria.

5. 0% VAT on Energy Efficiency Measures

Until 31 March 2027, residential installations of solar panels, heat pumps, insulation, and battery storage are eligible for 0% VAT instead of the standard 20%. For a £7,000 solar system, that’s a £1,400 saving — available to every homeowner.

What’s Coming: ECO5

The government has consulted on a successor to ECO4, provisionally referred to as ECO5. It is expected to launch later in 2026, though exact dates, eligibility criteria, and funding levels have not yet been confirmed.

Based on the consultation, ECO5 is likely to:

• Continue the obligation on large energy suppliers to fund energy efficiency improvements
• Focus on low-income and vulnerable households, with a possible expansion of the LA Flex route
• Include boiler replacement, insulation, heat pumps, and potentially solar PV
• Run for approximately four years (as ECO4 did)

Until ECO5 launches, the Warm Homes: Local Grant is the primary route for households who would have qualified under ECO4.

I Applied For ECO4 Before 31 March 2026 — What Happens?

If you applied before the deadline:

• Your application is still valid. Approved measures will be delivered as planned.
• No action needed if your installer has confirmed your installation date.
• If you’re unsure of your application status, contact the installer or energy supplier you applied through.

ECO4’s closure only affects new applications. Measures already approved continue to be funded and installed.

How to Get Help Now

If you missed the ECO4 deadline and need help with boiler replacement, insulation, or solar panels:

1. Check your eligibility for the Warm Homes: Local Grant and Boiler Upgrade Scheme using our free 60-second assessment
2. Contact your local authority to ask about Warm Homes referrals and any local schemes
3. Register for Solar Together if you’re interested in discounted solar panels
4. Act before March 2027 to benefit from 0% VAT on energy efficiency measures

Summary

ECO4 has ended, but the support it provided hasn’t disappeared — it’s evolved. The Warm Homes: Local Grant is the direct replacement for low-income households, offering up to £15,000 in funded improvements. The Boiler Upgrade Scheme offers £7,500 towards a heat pump for any homeowner. And ECO5 is expected later in 2026, restoring the energy supplier obligation in a new form.

If you think you might qualify for any of these schemes, checking your eligibility takes less than a minute.

Ready to find out what you qualify for? Get free solar & boiler quotes in 60 seconds — we’ll check the Warm Homes: Local Grant, Boiler Upgrade Scheme, and other support available to you.