ECO4 Scheme: free solar panels for eligible households

ECO4 is one of the few schemes that can fund solar panels at no cost to eligible UK households. Be aware of an important catch, though: under ECO4 solar PV is only funded as a heating measure, so it is limited to homes with electric heating or a heat pump — not homes on mains gas. Where it applies, it can cover the full installed cost. The scheme closes at the end of December 2026.

What is ECO4?

ECO4 stands for Energy Company Obligation 4. It is a government obligation, not a direct grant — Ofgem administers it on behalf of the Department for Energy Security and Net Zero (DESNZ), and it requires medium and large UK energy suppliers (British Gas, EDF, E.ON, Octopus, OVO, Scottish Power, and others) to fund a set amount of energy improvements for fuel-poor and vulnerable households. The suppliers pay for this through their operating costs, which is why ECO4 is sometimes described as “funded by energy suppliers.”

The scheme is overwhelmingly about insulation and heating upgrades. Solar PV is fundable, but only as a heating-related measure (see “What does ECO4 cover?” below) — it is a small share of total ECO4 activity rather than a headline measure.

The current phase (ECO4) runs until 31 December 2026, following a nine-month extension. There is no ECO5; its successor is the Warm Homes Plan.

Who qualifies?

Eligibility has two parts — a household test and a property test — and you generally need to meet both.

1. Household: qualifying benefits (or ECO4 Flex)

The main route is receiving a qualifying means-tested benefit. You qualify if anyone in your household receives one of the qualifying benefits:

• Universal Credit
• Income-related Employment and Support Allowance (ESA)
• Income-based Jobseeker's Allowance (JSA)
• Income Support
• Pension Credit (Guarantee Credit or Savings Credit)
• Child Tax Credit
• Working Tax Credit
• Housing Benefit
• Child Benefit (subject to income caps)

If you do not receive a qualifying benefit, you may still qualify via your council's ECO4 Flex route (see below). Many councils use a gross household income of under £31,000 as one of their thresholds, but this figure is set locally and varies — some areas use a higher cap, and some use income limits that rise with household size or allow a vulnerability route instead. There is no single national income threshold for ECO4 itself.

2. Property EPC rating

Your property also needs a low Energy Performance Certificate (EPC) rating. For owner-occupied homes the qualifying bands are D, E, F, or G; for private rented and social housing the threshold is generally E, F, or G (band D is restricted to certain measure types). Properties already rated A, B, or C are not eligible — the scheme is targeted at homes with the most to gain from energy improvements.

If you do not know your EPC rating, you can check it free on the government's EPC register. If your property is not yet rated or the certificate is very old, an installer or assessor can arrange a new assessment.

ECO4 Flex (Local Authority Referrals)

A portion of ECO4 funding — called ECO4 Flex — can be accessed via local authority referrals. Councils can identify eligible households based on local criteria, which may include households not receiving the above benefits but still considered fuel-poor. It is worth contacting your local authority if you are borderline on the standard criteria.

If your home is EPC band D (rather than E, F, or G), ECO4 may not apply to you as an owner-occupier — ECO4 generally targets E, F, and G for the broadest range of measures, with D properties eligible only for certain measure types. A separate scheme, the Great British Insulation Scheme, targets EPC D properties for a single insulation measure; it does not cover solar PV but may improve your EPC rating ahead of future solar funding.

What does ECO4 cover?

ECO4 funds insulation (loft, cavity wall, solid wall and similar) and heating measures. Under Ofgem's ECO4 delivery rules solar PV is not a standalone measure — it is fundable only as a heating measure, where the property's heating system (before the project, or installed as part of it) is a hydronic heat pump, high heat retention electric storage heaters, or an electric heating system. In practice this means homes on mains gas central heating cannot get solar through ECO4, and solar is a small share of all ECO4 measures delivered.

Where solar PV does qualify, a typical ECO4-funded installation includes:

• Solar PV panels (usually 3–5kWp capacity for a standard home)
• A string or hybrid inverter
• All installation labour
• Scaffolding
• MCS certification — required for Smart Export Guarantee registration
• DNO notification

Whether a battery is included depends on the installer and the specific ECO4 measure being installed. Battery storage is more commonly funded under the newer Warm Homes: Local Grant pilot than under ECO4. Do not assume a battery is included — confirm in writing with your installer.

Do you own the panels?

Yes. Under ECO4, the panels installed on your home become your property. This is important for two reasons:

• Smart Export Guarantee: Because you own the panels, you can register with an energy supplier to receive SEG payments for surplus electricity you export to the grid. This adds to your long-term savings.
• No lease complications: Leased solar arrangements (where a third party owns the panels on your roof) can create problems when remortgaging. Owned solar does not have this issue.

How to apply

There is no single central application portal for ECO4. The main routes are:

1. Contact your energy supplier: Most major suppliers have an ECO4 page and can check your eligibility. Some have their own installer networks; others refer you to approved third parties.
2. Use the GOV.UK energy advice service: The government's Find ways to save energy in your home service (which replaced Simple Energy Advice) can point you to grants and energy-efficiency support.
3. Contact a registered ECO4 installer directly: Look for companies that are MCS certified and listed on the TrustMark register, which are the two quality marks used for ECO4 work.
4. Via your local authority (ECO4 Flex route — see above).

Be wary of cold callers claiming to offer free solar under ECO4. Legitimate installers do use telephone outreach, but any legitimate process will include a formal eligibility check and written documentation before any installation begins.

What happens after ECO4 closes?

ECO4 closes on 31 December 2026. There is no ECO5 planned. The confirmed successor is the Warm Homes Plan, the government's grant-funded retrofit programme backed by £15 billion of public investment to upgrade up to 5 million homes. Unlike ECO4 (a supplier obligation), the Warm Homes Plan is funded by direct government grants and loans. Its detailed household eligibility criteria are still being finalised as of mid-2026, but the target groups are broadly similar to ECO4, plus social housing residents and private renters.

If you qualify for ECO4 now, acting before December 2026 is advisable rather than waiting to see what the Warm Homes Plan offers. There is no guarantee the successor will have more generous terms.

Frequently asked questions