The UK government’s Energy Company Obligation (ECO) scheme has entered its fourth phase — and ECO4 is bigger, longer and more targeted than ever.
Running from 2022 to 2026, the £4 billion ECO4 scheme is designed to improve energy efficiency in UK homes and reduce fuel poverty. For certified installers, it represents a major opportunity to secure consistent work across insulation, heating, and low-carbon technologies.
In this article, we break down what ECO4 is, how it works, who’s eligible, and most importantly — how you, as an installer, can position your business to benefit from it.
🔍 What Is ECO4?
ECO4 is the latest phase of the Energy Company Obligation, a government-mandated programme requiring major UK energy suppliers to fund energy-saving upgrades in low-income or vulnerable households.
Unlike previous phases, ECO4 is:
- Focused on whole-house retrofits, not single-measure installs
- Structured to improve EPC ratings significantly (minimum band D for homes in most cases)
- Backed by over £1 billion of funding per year until 2026
The goal? Lower fuel bills, reduce carbon emissions, and upgrade UK housing stock.
🧱 What Measures Are Funded Under ECO4?
Installers can claim funding under ECO4 for:
- Loft insulation
- Cavity wall insulation
- Internal and external wall insulation
- Room-in-roof insulation
- Floor insulation
- First-time central heating
- Heating upgrades (where appropriate)
- Smart heating controls
- Renewable technologies (e.g. air source heat pumps, solar PV — in some cases)
But unlike earlier ECO schemes, you can't just install one product and claim. You must deliver a whole-house improvement plan, coordinated and signed off by a Retrofit Coordinator.
👥 Who Qualifies for ECO4?
Households must meet one of the following eligibility criteria:
1. Means-tested Benefits
Including:
- Universal Credit
- Pension Credit
- Child Tax Credit
- Housing Benefit
- Income Support
- ESA / JSA (income-based)
2. LA Flex
Local authorities can declare additional households as eligible under the LA Flex scheme (e.g. low income, vulnerable, health conditions).
3. Social Housing
Some social housing tenants (especially EPC-rated E-G) are eligible.
Properties must typically be:
- Owner-occupied or privately rented
- EPC rated E, F, or G (unless upgrading to D or better)
📊 What’s the Scale of the Opportunity?
ECO4 is worth £4 billion over four years — and as of 2024, many obligated suppliers still have significant delivery targets to hit.
According to BEIS (now DESNZ), over 3 million UK homes could benefit from the scheme by 2026.
For installers who are PAS 2030/2035 certified, this means:
- Consistent job pipelines
- Fully funded projects
- Reduced customer acquisition cost
- Long-term contracts with managing agents or funders
🔧 What You Need to Deliver ECO4 Jobs
To install under ECO4, you need to meet strict compliance requirements:
| Requirement | Details |
|---|---|
| PAS 2030:2019 Certification | For each measure you plan to install |
| TrustMark Registration | Required to carry out funded work under ECO4 |
| PAS 2035 Retrofit Coordinator | Must create a Whole House Retrofit Plan and oversee compliance |
| Qualified Assessors | Retrofit Assessors needed to carry out in-depth property evaluations |
| Data Submission Systems | Accurate digital evidence for every measure (photos, U-values, SAP, etc) |
If you're not yet certified, consider partnering with a coordinator or managing agent while you build capacity.
🧾 How Are ECO4 Jobs Funded?
Jobs are funded by obligated energy suppliers (e.g. British Gas, E.ON, EDF), either directly or via managing agents.
Installers typically:
- Submit a Retrofit Plan
- Get pre-approval for measures
- Install in accordance with the PAS standards
- Submit evidence for payment
- Receive funding per measure or per project, based on deemed scores or actual energy savings
You may need to register with the Ofgem ECO4 portal or work through a delivery partner.
📍 How to Find ECO4-Eligible Customers
Most installers rely on:
- Referrals from councils or housing associations
- Lead generation platforms (some good, some overpriced)
- Door-to-door outreach in EPC F/G postcodes
- Facebook ads targeting low-income demographics
But this is where most struggle — finding high-quality, verified, eligible households before competitors do.
🧠 How to Grow Your Business With ECO4
To scale using ECO4, you need to:
- ✅ Understand the PAS 2035 workflow (assessment → design → install → handover)
- ✅ Build relationships with Retrofit Coordinators and funders
- ✅ Focus on eligible postcodes and EPC-rated homes
- ✅ Build a marketing funnel that targets benefits-claiming households or LA Flex candidates
- ✅ Stay compliant — the scheme is strict, and poor installs can mean rejected claims
Done right, ECO4 jobs can provide sustainable, fully funded revenue for years.
📣 Bonus: Want Verified ECO4 Leads?
If you're ready to take on more ECO4 installs and want access to recent homebuyers, EPC-challenged homes, or LA Flex-eligible properties…
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