ECO4 Scheme and Heat Pumps: Free Installation for Eligible Households
The ECO4 scheme can cover the entire cost of a heat pump installation — you pay nothing. Unlike the Boiler Upgrade Scheme which provides a £7,500 discount, ECO4 funds the full installation for qualifying households. It is one of the most significant — but least well-known — routes to a free heat pump in the UK.
This guide explains what ECO4 is, who qualifies, how heat pumps fit into the scheme, and how to access free installation if you are eligible.
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What Is the ECO4 Scheme?
ECO stands for Energy Company Obligation. It is a government programme that requires large energy suppliers (those with more than 150,000 domestic customers) to fund energy efficiency improvements in UK homes. ECO4 is the fourth iteration.
ECO4 Eligibility
ECO4 is means-tested. You are likely eligible if you:
- Receive means-tested benefits: Universal Credit, Pension Credit, Child Tax Credits, income-related ESA, income-based JSA
- Live in a property with an EPC rating of D, E, F, or G
- Are on a low income and vulnerable to the effects of cold
Heat Pumps Under ECO4
Heat pumps are one of several eligible measures under ECO4. The scheme takes a "whole house" approach, often combining a heat pump with insulation improvements. This means your home gets both better heating and better insulation — which makes the heat pump work more efficiently and costs less to run.
How to Apply
There are several routes to accessing ECO4:
- Contact your energy supplier and ask about ECO4 eligibility
- Search for ECO4-approved contractors in your area
- Check eligibility through the Simple Energy Advice service
- Contact your local council, who may refer you to ECO4 schemes
Not sure if you qualify for ECO4? Get a heat pump quote instead
Get Free QuotesMCS-certified installers can advise on all available grants including ECO4.
ECO4 vs BUS Grant
| Feature | ECO4 | BUS Grant |
|---|---|---|
| Amount | Full cost covered | £7,500 |
| Who qualifies | Low-income / benefits recipients | All homeowners meeting criteria |
| Can combine? | No — cannot receive both for the same installation | |
| Best for | Low-income households | All other homeowners |
If you qualify for ECO4, it is almost always the better option because it covers the full cost. If you do not qualify, the BUS grant provides £7,500 towards your installation. See our complete UK grants guide for all options.
Find out what heat pump funding you can access
Get Free Installer QuotesInstallers can advise on ECO4, BUS, and local authority grants.
Frequently Asked Questions
What is the ECO4 scheme?
A government programme requiring large energy suppliers to fund energy efficiency improvements, including heat pumps, in low-income households.
Can I get a free heat pump through ECO4?
Yes. Qualifying households pay nothing for the installation.
Who qualifies for ECO4?
Households receiving means-tested benefits and living in properties with an EPC rating of D, E, F, or G.
Can I get ECO4 and the BUS grant together?
No. You cannot receive both for the same installation.
How do I apply for ECO4?
Contact your energy supplier, an ECO4 contractor, or the Simple Energy Advice service.
About ECO4 and UK Energy Efficiency Policy
The Energy Company Obligation is a cornerstone of UK energy efficiency policy, requiring major suppliers to invest in home improvements for vulnerable households. ECO4 works alongside the Boiler Upgrade Scheme, Home Energy Scotland, and Nest to provide comprehensive heat pump funding across the UK. Air source heat pumps are the most commonly installed technology under ECO4. Households pairing a heat pump with solar panels can reduce ongoing electricity costs substantially, making the transition to renewable heating even more beneficial.