With all of the available government grants, sometimes customers don’t understand where the funding comes from. This lack of information can leave some people sceptical about the legitimacy of these grants and that in some way, they are just a scam with no true follow-through.
With this article, we can begin to understand where the money for the ECO4 (Energy Company Obligation) scheme comes from and why it’s important for your property. We’ll talk about the funding sources and the reasons behind these programs’ existing. Hopefully, this will leave you in a more confident position regarding the schemes and the funding backing them.
What is the ECO4 Scheme?
The Energy Company Obligation 4 (ECO4) is a UK government plan to make homes more energy-efficient and eco-friendly. With the government, energy companies will help pay for renewable energy upgrades in people’s homes, especially those who need it the most.
Where Does the ECO4 Money Come From?
The main sources of funds for the ECO4 scheme are:
1. Energy Companies: Energy companies will provide some funding to the ECO4 scheme. They do this to contribute to making UK homes more energy efficient as well as cutting their energy bills.
2. Government Help: The UK government also gives extra money to make sure the ECO4 scheme works well and offers grants that can help in obtaining insulation, solar power, and renewable energy heat sources such as heat pumps.
Why Do They Fund ECO4?
Simply, ECO4 is funded to reach the net zero goal by 2050. To do this, all homes in the UK must have renewable energy sources in their properties. Therefore, to speed up this process, the government are supplying funding to quickly reach this goal.
1. Saving Energy: The big reason for the ECO4 scheme is to help homes consume energy more wisely. When homes are efficient with their energy, they save money on bills and lower the planet’s carbon emissions.
2. Helping Those in Need: ECO4 focuses on homes with people who may be struggling to pay for their energy bills. Among the most vulnerable groups benefiting from this scheme are pensioners. By introducing energy-efficient methods to their homes, the scheme helps them stay warm and comfortable without spending too much money on their energy bills. Reduce your energy bills with ECO4- Apply Now
3. Taking Care of the Environment: The UK is working hard to reduce air pollution and fight climate change. ECO4 is part of this plan because energy-efficient homes produce less pollution and are better for the planet. Via this huge scheme, the government hopes to contribute to the net zero goal.
4. Being Responsible: Energy companies have a duty to do good things for society. With rapidly rising energy rates, providing money to the ECO4 scheme is one way they can help make homes better for people and the environment.
In Conclusion
The ECO4 scheme gets its funding from energy companies and the UK government to make homes more energy-efficient. They do this to save energy, help those who need it most, protect the environment, and reach the ultimate net zero goal by the year 2050. By supporting ECO4, they make sure that all homes in the UK are warmer, more budget-friendly, and kinder to the planet.
Comments
If it’s anything like the government grant that I got on my heat pump it’s not worth applying for.
I got a so called grant which meant I had to pay in full and got repaid over 7years at ,£100 per month. I ended up giving HMG some £11500 and getting paid about three monthly installments. Until the pump that was Installed by a sub contractor who used the salesman’s MCS certificate after paying him a fee.
My pump died after a short time and my repayments stopped.
It’s not viable without the repayments.
I paid my pump maker Mitsubishi £5000+ to refit the unit correctly.
Grant people still not paying out.
So be wary if you fall for this unpolicedvas far as checking quality of installations is concerned .
You might end up like me having to subsidise the government
Hi there, sorry your experience with the government grants have been a negative one. Do you mind sharing which grant it was you applied for?
ECO4 (The Energy Company Obligation) aims to improve the energy efficiency of homes, particularly for low-income and vulnerable households. The scheme obliges energy suppliers to fund energy efficiency measures to help reduce carbon emissions and lower heating costs for consumers.
All upgrades made to your home are 100% free.
This is a legitimate government backed grant and is regulated by Ofgem. For more information click here: The ECO4 Scheme
Ofgem ECO4
2 separate companies cold called, said will do free EWI, measured up, few months later, day before work was due to start requested £4600 and £4000 contributions by e-mail and the other company verbally
Is this legal with ECO4 funding?
Hello Mo, the ECO4 is completely FREE. You are not required to pay anything to get the installation done. Learn about the ECO4 scheme https://energyadvicehelpline.org/grants/eco4-scheme/
I applied for this scheme the loft was lagged. Two weeks ago the radiator valves were replaced. I had no knowledge nor did I ask for a new thermostat. It was a fait accompli. I was told briefly how it worked.
Three days later it stopped working. I contacted the contact I had, nothing was being done and I had no choice but to get a heating engineer to fix it and pay £102. I have /had no heating at 6o. I have been endeavouring to get the money back. Unsuccessfully. As if this is not bad enough I have no heating again. I am 73 with health conditions in recovery from cancer surgery in June and I believe I have another tumour. This whole situation was meant to help. To summarise I have no heating and I am £102 down
Hi there Rosamund, we appreciate your comment.
We will be in touch with you shortly via email. Thank you for you patience.
Billy
Hi I had external wall insulation done and one of the wall started having dampness, work was Not finished complaints was made to the installer and yet Nothing is fixed. (Sent pictures) please advise (ECO4 Government Grants scheme)
Hi Mr Mistry,
Thank you for contacting us and for leaving a comment.
I’m sorry that you are having issues with your wall insulation and your installer. If you have already contacted your installer and you have had no further response or adequate support, please follow this link to Ofgem’s web page about the ECO4 complaint’s process. Hopefully this will help you get your insulation issue solved for you!
Kind Regards.
The Energy Advice Helpline Team.
I’ve just had my 36 year-old boiler replaced free under the ECO4 scheme and was sceptical at first but it’s genuine and I can thoroughly recommend it. I applied in March ‘25 and the boiler was installed exactly four weeks later. The company was brilliant to deal with and any minor problems were dealt with within the following week (yesterday)! I’m still amazed and feel very lucky and look forward to being warmer next winter.
Hi Yvonne,
Thank you so much for your lovely comment – we’re thrilled to hear you had such a great experience! 😊
One of our team members will be in touch soon to learn a bit more about your journey, if that’s okay?
We’d love to hear more!
Have a fantastic day! 🌟
The Energy Advice Helpline Team