ECO4 Heat Pump Grant: Who Qualifies and How to Apply in 2026

The ECO4 heat pump grant can cover the full cost of a heat pump installation for low-income and fuel-poor households in the UK. You'll typically qualify if you receive certain means-tested benefits and live in an energy-inefficient home rated EPC band D, E, F, or G. The scheme runs until March 2026, so time is genuinely running short if you want to apply.

What Is the ECO4 Scheme and Does It Cover Heat Pumps?

ECO4 stands for Energy Company Obligation 4. It's a government programme that forces the largest energy suppliers (those with more than 150,000 domestic customers) to fund energy efficiency improvements in the poorest-performing homes across Great Britain.

Heat pumps are one of the measures that ECO4 can fund. Air source heat pumps are the most common type installed under the scheme, though ground source heat pumps can also be included where appropriate. The key difference between ECO4 and the Boiler Upgrade Scheme is that ECO4 can cover the entire cost of your installation, not just a fixed grant amount.

The scheme is administered by Ofgem but delivered through energy companies and their approved contractors. You don't apply directly to your energy supplier. Instead, you'll typically work with an ECO4-approved installer who handles the paperwork and funding application on your behalf.

Who Qualifies for an ECO4 Heat Pump Grant?

Eligibility comes down to two things: the benefits you receive and the energy rating of your home.

You'll qualify if you're receiving one or more of these benefits:

Universal Credit (with limited income thresholds)
Pension Credit (Guarantee Credit)
Income-based Jobseeker's Allowance
Income-related Employment and Support Allowance
Income Support
Child Tax Credits (with income below £16,480)
Working Tax Credits (with income below £16,480)
Housing Benefit
Pension Credit (Savings Credit)
Child Benefit (with income limits)

Your home also needs to have an EPC rating of D, E, F, or G. Homes already rated C or above generally won't qualify because the scheme targets the least efficient properties. There's a logical reason for this: the whole point of ECO4 is to bring the worst housing stock up to at least a band C.

There's also a "flex" route. Local authorities can refer households that don't receive qualifying benefits but are still considered fuel-poor or vulnerable. This is worth checking with your local council if you're on a low income but don't tick the benefits boxes.

How Much Does ECO4 Actually Cover for Heat Pumps?

Here's where ECO4 differs from other schemes. There's no fixed grant amount like the £7,500 you get from the Boiler Upgrade Scheme. Instead, your energy supplier funds the measures based on a points system that values carbon savings and bill reductions.

In practice, this means that a qualifying household could get an air source heat pump installed at no cost whatsoever. Installations that might cost £8,000 to £14,000 privately can be fully funded. The catch? The installer and energy company need to agree that your home is suitable and that the installation will deliver enough energy savings to justify the spend.

Some installations also include additional measures alongside the heat pump. You might get loft insulation, cavity wall insulation, or draught-proofing thrown in because the scheme requires your home to reach band C overall. That's actually a bonus, because a heat pump works far more efficiently in a well-insulated house.

How to Apply for an ECO4 Heat Pump Grant: Step by Step

The process isn't complicated, but it does involve a few stages.

Step 1: Check your eligibility. Confirm you're receiving a qualifying benefit and that your home has an EPC rating of D or below. You can check your EPC for free on the government's EPC register at epc.openenergy.org.uk.

Step 2: Find an ECO4-approved installer. This is the most important step. Not every heat pump installer works with ECO4 funding. You need a company that has agreements in place with obligated energy suppliers. They'll usually assess your home, confirm eligibility, and manage the entire application.

Step 3: Get a home assessment. The installer will arrange a survey to check what measures your home needs. They'll look at your current heating system, insulation levels, and whether your property is suitable for a heat pump.

Step 4: The installer applies for funding. Your installer submits the application to an energy company on your behalf. You'll need to provide proof of your qualifying benefit, usually a recent award letter or benefits statement.

Step 5: Installation. Once approved, the work gets scheduled. A typical air source heat pump installation takes two to three days.

Step 6: Completion and sign-off. After installation, Ofgem's TrustMark framework requires the work to be lodged on the TrustMark data warehouse and an updated EPC to be produced.

Frankly, the hardest part for most people is finding a legitimate ECO4 installer. There are companies that cold-call or knock on doors offering "free boilers" or "free heat pumps" under ECO4. Some are genuine; many aren't. Always verify that the installer is TrustMark registered and has a real relationship with an obligated energy supplier.

How Does the £7,500 Boiler Upgrade Scheme Compare to ECO4?

The Boiler Upgrade Scheme (BUS) offers a flat £7,500 grant towards an air source heat pump, and it's available to a much wider range of homeowners. You don't need to be on benefits. The main requirements are that you own your property, it has a valid EPC, and you're replacing a fossil fuel heating system.

But here's the thing: the BUS grant still leaves you paying the difference. If your heat pump installation costs £12,000, you'll pay £4,500 out of pocket. For households on low incomes, that's simply not affordable.

ECO4 can cover everything. So if you qualify for ECO4, it's almost always the better option financially. Some installers will even combine ECO4 with other funding sources to make sure you pay nothing at all.

If you don't qualify for ECO4 but want a heat pump, the BUS grant is your main alternative. You can find MCS certified installers who handle BUS applications through our directory.

"I've Heard ECO4 Is Full of Scams. Is It Safe?"

This is the biggest concern people raise, and it's a fair one. The ECO scheme has attracted rogue operators since its early days. Stories of shoddy cavity wall insulation and poorly installed boilers have made plenty of homeowners wary.

The good news is that ECO4 has much tighter quality requirements than earlier versions. All installations must be done by TrustMark-registered businesses. Heat pump installations specifically must be carried out by MCS certified installers. And there's a requirement for proper aftercare and a guarantee backed by the TrustMark framework.

Here's how to protect yourself:

Never pay an upfront fee for an ECO4 application. The scheme is free to qualifying households.
Check the installer's TrustMark registration at trustmark.org.uk.
Verify their MCS certification at mcscertified.com.
Be suspicious of anyone who pressures you to sign quickly or won't provide written documentation.
Ask which energy company is funding the work and verify it independently.

Let me give you a real example. A retired couple in Stoke-on-Trent receiving Pension Credit were contacted by a company offering a free heat pump under ECO4. They checked the company's TrustMark registration, confirmed the energy supplier involved, and had an air source heat pump installed at zero cost in late 2025. Their gas bills dropped by around 40%, and their EPC went from an E to a C. That's how it should work.

ECO4 Heat Pump Grant: Frequently Asked Questions

Can I get a free heat pump on ECO4 if I rent my home?

Yes, but your landlord needs to give permission for the installation since they own the property. Private tenants on qualifying benefits can be eligible, and the landlord doesn't have to contribute financially. Your installer will need the landlord's written consent before any work begins.

What EPC rating do I need to qualify for ECO4?

Your home needs to have an EPC rating of D, E, F, or G. Homes already rated C or above won't normally qualify because the scheme targets properties with the worst energy performance. You can check your current EPC rating for free on the government's EPC register.

Is ECO4 ending in 2026?

ECO4 is currently set to run until 31 March 2026. The government hasn't confirmed whether a successor scheme will follow immediately, so if you think you qualify, it's worth applying sooner rather than later. Processing times and installation schedules mean you shouldn't leave it until the final weeks.

Do I have to pay anything towards an ECO4 heat pump?

In most cases, qualifying households pay nothing. The full cost of the heat pump and installation is covered by the obligated energy supplier. Occasionally, if your home needs significant additional work like electrical upgrades, there may be minor costs, but your installer should explain this upfront before you commit.

How long does it take to get a heat pump installed through ECO4?

From initial enquiry to installation, it typically takes between four and twelve weeks. The main delays come from eligibility verification, home surveys, and funding approval from the energy company. The actual installation of an air source heat pump usually takes two to three days once everything is approved.

If you're looking for a trusted, MCS certified heat pump installer in your area, whether for an ECO4 application or a Boiler Upgrade Scheme grant, search your postcode on heatpumpinstallerdirectory.co.uk. Every installer listed holds current MCS certification, which is required for both government-funded schemes.