How The ECO4 Scheme Works: Energy bills remain one of the biggest challenges for households across the UK, and in Wales, many families are struggling with cold homes and high costs. To help, the UK government introduced the ECO4 scheme — a programme offering free heating and insulation upgrades to eligible homes.
In this Clariform Explainer, we’ll break down exactly how the ECO4 scheme works, who can apply, what improvements are included, and how the process looks step by step.
👉 Related Reading: [Thousands in Wales Upgrading Home Heating for Free Under ECO4 Scheme]
What Is the ECO4 Scheme?
The ECO4 (Energy Company Obligation Phase 4) is the latest phase of a UK-wide programme that requires energy suppliers to fund energy-saving improvements for low-income or fuel-poor households. It runs until March 2026.
The aim is to:
- Reduce household energy bills
- Improve living conditions in poorly insulated homes
- Cut carbon emissions in line with the UK’s net-zero goals
Who Can Apply?
Eligibility depends on your circumstances and your home’s energy rating:
✅ You may qualify if:
- Your home has an EPC rating of D–G
- You receive benefits such as Universal Credit or Housing Benefit
- You have a household income below certain thresholds
- You live in a rural or fuel-poor area
Local councils in Wales, such as Anglesey Council, also provide additional guidance and application support.
What Upgrades Are Covered?
ECO4 follows a “whole-house approach,” meaning it may fund multiple measures to lift your property’s energy rating by at least two bands. Upgrades can include:
- Insulation – loft, cavity wall, solid wall
- Heating systems – boilers, heat pumps, or modern electric heating
- Solar panels – renewable energy generation
- Smart heating controls – improve efficiency and cut waste
How the Process Works (Step by Step)
- Check Eligibility
Start with a quick online check through accredited providers such as ECO Wales. - Book a Free Survey
A qualified assessor will review your home’s energy use and condition. - Get a Tailored Plan
You’ll receive recommendations on the best mix of improvements for your property. - Free Installation
Work is arranged and carried out — with no upfront costs. The bill is settled directly by energy suppliers under the ECO4 obligation. - Enjoy the Benefits
Lower bills, a warmer home, and reduced carbon footprint.
Benefits of ECO4 for Welsh Households
- Save Money – Families can save £300–£500 a year on average bills
- Improve Comfort – Warmer homes with less damp and mould
- Support Climate Goals – Contributes to the UK’s environmental commitments
👉 Related Reading: [How to Open a Bank Account in the UK as a New Immigrant]
Common Questions About ECO4
Q: Is ECO4 really free?
Yes — if you qualify, energy suppliers cover the full cost of installation.
Q: Can private tenants apply?
Yes, but you’ll need your landlord’s consent before any work begins.
Q: How long does the process take?
From survey to installation, it may take a few weeks depending on demand.
Conclusion
The ECO4 scheme is one of the most impactful ways households in Wales can save money, stay warm, and contribute to a greener future — all at no cost. If you think you qualify, start with an eligibility check and book a survey today.
At Clariform, we’re committed to explaining complex schemes like ECO4 in simple, practical terms so you can take action confidently.
