ECO4 scheme: everything installers need to know

What is the ECO4 scheme?

This government initiative to fund energy-efficient home upgrades will run until March 2026. It's designed to help reduce fuel poverty and carbon emissions by funding energy-efficient improvements in eligible homes. 

ECO4 scheme key facts: 

• The scheme should help fund around 450,000 home upgrades - that's thousands of potential jobs for qualified installers 

• It prioritises the least energy-efficient homes (EPC ratings E-G) where most work is needed 

• Funding of up to £20,000 per household is available allowing for large improvement projects 

• The scheme covers heat pumps, solar PV installations, high heat retention storage heaters and smart heating controls 

How to become an ECO4 installer: step-by-step guide

Getting started with ECO4 isn't complicated, but you do need the right accreditation. Here's what you need to know to get your business ECO4-ready.  

Essential requirements   

To become an ECO4 installer, you must have: 

• TrustMark registration 

• PAS2030:2035 accreditation for each measure you plan to install 

Ways to work with the ECO4 scheme

There are two main ways to operate within the ECO4 scheme:  

1. Work with managing agents   

At CEF, we’re proud to have partnerships with leading managing agents, connecting installers with trusted intermediaries who bridge the gap between contractors and energy suppliers. This collaboration ensures that the work offered is often better suited to smaller contractors or those new to the scheme, giving them the best chance to thrive.  Managing agents will often provide support services to help with:  

• Paperwork and compliance 

• Technical support 

• Quality assurance guidance 

• Assistance with the claims process 

While managing agents may take a cut of the funding available in return for helping with the administration of the scheme, their expertise simplifies the process and ensures installers can focus on the work that matters most.  

2. Direct partnership with energy suppliers 

This is where you work directly with energy supply companies like British Gas, EDF, EON, or Octopus.     This option may require you to have the resources and capacity to manage multiple installations and reporting paperwork. Generally, it offers good rates per installation. 

What products qualify for ECO4 funding? 

Here's a breakdown of the key products you can install under the scheme - all available through CEF. 

Heat pumps 

Air Source Heat Pumps are suitable for ECO4 grants as they offer a low carbon renewable heating solution and an energy-efficient alternative to traditional gas heating systems.   

For every one kilowatt of electricity used they can create up to four kilowatts of heat to warm radiators and hot water. 

They extract heat from surrounding outside air which delivers heat to the property through a wet heating system, through either radiators and or underfloor heating.  

 ECO4 guidance says that heat pumps are a renewable heating source and can be delivered in all on and off-gas properties, replacing any heating measure except existing heat pump systems. This includes installing a heat pump as an upgrade to properties with existing efficient heating systems. For example, a working condensing boiler could be upgraded to a hydronic heat pump if that would save on heating costs. 

  As part of the ECO4 scheme, heat pumps: 

• Can be installed in both on-gas and off-gas properties 

• Can replace existing heating systems (except same-type replacements) 

High heat retention storage heaters (HHR)

Electric high heat retention storage heaters (HHRs) use low-cost, off-peak energy, usually at night when tariffs are the cheapest. The energy is then released to the home when needed.  

A smart solution for properties without gas connections, these modern storage heaters offer significant improvements over older models. Some can understand and learn the individual heating requirements of each property so that they’re even more energy efficient.  

Under ECO4 funding requirements HHR and electric storage heaters are suitable for properties: 

• Without existing heating systems 

• With existing storage heaters 

To be eligible for ECO4 funding, Electric Storage Heaters (ESH) and electric heating systems must have a manufactured responsiveness rating of 0.8 or above when assessed against the UK Government’s Standard Assessment Procedure (SAP). High heat retention electric storage heaters meet this requirement. 

 Electric storage heaters and electric heating systems are classed as renewable heating systems when installed in a home that has solar PV or receives solar PV as part of the same project.  

Solar PV systems

Ofgem defines renewable heating systems as those partly powered by renewable energy. This change allows solar PV to be paired with electric heating and certain hybrid heat pump systems (excluding coal, oil, and LPG) as ECO4 measures.  

 Solar PV may be installed in:  

• On-gas homes that already have a hydronic heat pump, electric storage heater (ESH), or an electric heating system (EHS).   

• Off-gas homes that already have a hydronic heat pump, electric storage heater (ESH), or an electric heating system (EHS).   

If the home has none of these measures, one must be installed as part of the ECO4 project.   

We stock a full range of solar PV products and accessories through CEF branches, which you can view online here.

Contact our Renewables team for help with specifications and product selection. 

Heating controls, thermostats and TRVs

Smart thermostats give householders greater control over their heating systems through Wi-Fi and remote access. They help households save energy by learning household heating patterns and tailoring settings to users’ needs. 

To meet ECO4 standards, thermostats must include automation and optimisation features. In simple terms, this means that thermostats must be able to adjust timing and temperature automatically to improve efficiency and optimise heating settings.  For a smart thermostat to be suitable for ECO4:  

• Users must be able to control their home temperature via a tablet, smartphone, or desktop  

Maximise funding through innovation

The ECO4 scheme doesn't just focus on traditional energy efficiency measures, it actively encourages product innovation that delivers even greater benefits for household energy savings. If you’re looking to differentiate yourself as an installer, the Innovation Measures Route provides a fantastic opportunity to work with cutting-edge products while accessing higher funding uplifts. 

Here’s what you need to know about innovation uplifts: 

• Funding Uplift Tiers: Eligible innovation measures can earn a 25% funding uplift for reasonable improvements or up to 45% for substantial improvements. This is calculated based on their Partial Project Score (PPS), factoring in energy savings and environmental impact. 

• Supplier Partnerships: Only obligated suppliers can apply for recognition of innovative products or systems, ensuring you’re working with trusted solutions. 

• Installation Guidance: Successful applications receive detailed descriptions of eligible measures, ensuring clarity and compliance when it comes to installation. 

While the funding uplifts aren’t fixed across the whole project, they offer a significant boost to individual measures. As an installer, you can calculate these uplifts by reviewing the PPS and projected annual bill savings of the relevant measures, giving you confidence in the value you’re delivering to homeowners. 

Who qualifies for the ECO4 scheme?

Householders must own their own home or have their landlord’s permission to apply for ECO4 funding and will need to receive at least one of the following benefits: 

• Child Benefit 

• Pension Guarantee Credit 

• Income-related Employment and Support Allowance (ESA) 

• Income-based Jobseeker’s Allowance (JSA) 

• Income support 

• Tax Credits (Child Tax credits and Working Tax Credits) 

• Universal Credit 

• Housing benefit 

• Pension credit saving credit 

What properties are eligible for ECO4 funding?

Homes with an Energy Performance Certificate (EPC) Rating of F or lower can apply for ECO4 funding to improve their property to at least a D rating.  

The government set a minimum target of band E, F and G properties to be upgraded so that the most energy-inefficient properties are not left behind. 

By 2025 every new lease property in the UK must have an EPC of C or higher, so the sooner these changes are made, the better. 

• Initial EPC rating: D-G 

Minimum improvements required:  

• F/G rated properties must reach at least band D 

• D/E rated properties must reach at least band C 

Why partner with CEF for ECO4?

• Comprehensive range of ECO4-approved products 

• Next-day availability on key items 

• Local support through our branch network 

• Technical guidance from our renewables team 

Get started with ECO4 today, contact our Renewables team.