The ECO4 scheme (Energy Company Obligation phase four) is scheduled to close on 31st March 2026. After this date, it is expected to be replaced by the government’s proposed Warm Homes Plan.
For homeowners and landlords across the South East, this deadline matters. ECO4 has funded insulation, heating upgrades and in some cases solar PV systems for eligible households. With the scheme ending, the funding landscape for energy efficiency improvements is set to change. Below, we break down what ECO4 is, what it covers, who qualifies and what comes next.
What Is ECO4?
ECO stands for Energy Company Obligation – a government backed programme requiring larger energy suppliers to fund energy efficiency improvements in lower income and fuel poor households.
ECO4 is the fourth and final phase of the scheme, running from April 2022 to March 2026. Its objective has been to:
- Improve the energy performance of inefficient homes
- Reduce fuel poverty
- Lower carbon emissions
- Support progress toward the UK’s Net Zero targets
Unlike earlier versions, ECO4 adopted a “whole house” retrofit approach, focusing on improving a property’s fabric (insulation first) before upgrading heating systems.
ECO Scheme Timeline (2013-2026)
ECO (2013-2015)
Launched in 2013, the original scheme combined three carbon reduction initiatives and required major energy suppliers to fund insulation and heating upgrades. It exceededits initial carbon saving targets.
ECO2 (2015-2017)
Placed greater emphasis on tackling fuel poverty, particularly through heating improvements under the Affordable Warmth Obligation.
ECO3 (2017-2022)
Shifted focus further toward supporting low income households. Funding covered heating controls, underfloor insulation and boiler repairs or replacements.
ECO4 (2022-2026)
Introduced a fabric first methodology, prioritising:
- Loft insulation
- Cavity wall insulation
- Solid wall insulation
- Heat pump installations
- Low carbon heating solutions
- Solar PV in specific cases
ECO4 applies primarily to homes with EPC ratings of D, E, F or G.
Why Is ECO4 Ending?
ECO4 is due to conclude in March 2026. Government statements have indicated that it will be replaced by the Warm Homes Plan, although detailed policy guidance is still emerging. The transition reflects broader reform of how domestic energy efficiency grants are structured. Previous criticism of the scheme included:
- Limited public awareness
- Administrative complexity
- Concerns around installer compliance
Full details of the Warm Homes Plan are yet to be released, but it is believed that solar PV and battery storage will play a fundamental role in roll out.
What Should South East Homeowners Do Now?
With ECO4 closing in March 2026, households considering insulation upgrades, heating replacements or solar PV installations should act quickly. If you do not qualify for ECO funding, there is still strong financial arguments for investing in solar.
Solar can reduce your energy bills by up to 80%, offering protection from future price hikes and energy price volatility. Recent research has also shown that installing solar and battery storage can increase your property value by up to 14% and improve your EPC rating by up to 2 grades.
At SolarTherm UK, we specialise in professionally designed solar PV and battery storage systems for homes and businesses across the South East. Whether you qualify for grant support or are exploring private installation, we’ll provide you with a tailored system design, with EPVS verified performance and return on investment estimates to ensure accuracy and system suitability. Our dedicated team of MCS accredited installers will ensure your system is optimised to perform reliably for 30 years or more, and our team of solar experts are on hand to support you through any maintenance, testing or questions you may have for the lifetime of your system.
Contact SolarTherm UK today for a free, no obligation quote and design, tailored to your property, usage and future energy needs. No hard sell, just honest, expert advice – and the time to make an informed decision.
Your home. Your energy. Your future.
