Energy Company Obligation – ECO

Energy Company Obligation (ECO)

Please note, the Energy Company Obligation will officially end on 31st December 2026.
Funding availability between March 2026 and December 2026 may be limited.

What is ECO?

The Energy Company Obligation or ‘ECO’ is a UK Government policy administered by OfGEM.

The policy places an obligation on energy suppliers to support energy efficiency improvements in homes across the UK.  It was first introduced in 2013 and ECO-4 is the fourth iteration of the scheme for the period 2022-26.

ECO provides significant annual investment into the energy efficiency sector.  The scale of the obligation means that energy suppliers cannot meet their targets using an ‘in-house’ delivery model.  As such, the energy suppliers utilise existing supply chains by forming agreements with energy efficiency installers across the UK.  In practice, this means installers can draw down funding from energy suppliers to offer you a free or subsidised package of works.

The funding is specifically targeted to assist low-income households, and/or households that are vulnerable to the effects of living in a cold home.

Eligibility

Eligibility for the scheme is determined by two factors:

  • Property Eligibility
  • Household Eligibilty

Property Eligibility

The energy efficiency of a home is calculated by a Domestic Energy Assessor who will produce an Energy Performance Certificate (EPC) for the property. You may already be familiar with EPC’s as they are mandatory in Scotland when buying/selling a property.

The EPC rates the energy efficiency of the home on a scale of 1-100, categorised in bands A-G. ‘A’ is the most efficient and ‘G’ is the least efficient.

ECO-4 is designed to improve the least efficient homes, and therefore to qualify for funding, the current EPC rating of your home must be in band D, E, F or G.

Household Eligibility

ECO-4 has two eligibility groups:

As well as each Group having different eligibility criteria, the installers that are authorised to operate under each Group also differ.

Click on the links above to read more about each Group.