Green Home Grants and ECO4 Scheme Guide 2026

Making your home more energy efficient has never been more financially relevant, with energy bills remaining high and a growing range of government schemes offering free or heavily subsidised improvements. Whether you own or rent, your income level and your home's current energy rating together determine which grants you can access -- and some households qualify for thousands of pounds of work at no cost.

ECO4: Free Home Improvements for Low-Income and Inefficient Homes

The Energy Company Obligation (ECO) scheme has run in various forms since 2013. ECO4 is the current iteration, running to March 2026 and likely to be followed by further obligations. Under ECO4, large energy suppliers -- those with more than 150,000 domestic customers -- are required by Ofgem to fund energy efficiency improvements for eligible households.

ECO4 targets two groups: households receiving qualifying benefits (including Universal Credit, Pension Credit, Child Tax Credit, Working Tax Credit, Housing Benefit, and several others), and households living in properties with low energy efficiency ratings (EPC bands D, E, F, or G), where occupants may or may not receive benefits.

Eligible improvements under ECO4 include solid wall insulation, cavity wall insulation, loft insulation, underfloor insulation, solar panels in some cases, heat pumps, and first-time central heating systems. The measures installed depend on what is most appropriate for your property type and the assessor's recommendation.

The scheme is accessed through installers accredited under the TrustMark and Microgeneration Certification Scheme (MCS) frameworks. Your energy supplier may contact you directly if you are on their database as a benefit recipient, or you can approach installers in your area. The government's Simple Energy Advice service is a good starting point.

The Great British Insulation Scheme

Running alongside ECO4, the Great British Insulation Scheme (GBIS) takes a slightly different approach. It is designed to fund a single insulation measure for households that may not qualify under ECO4's stricter benefit criteria.

GBIS eligibility has two tracks. The first is an income track covering households receiving certain means-tested benefits, similar to ECO4. The second is a general track for homes in council tax bands A to D in England (A to E in Scotland and Wales) with an EPC rating of D or below.

The single-measure focus of GBIS means it typically funds loft insulation, cavity wall insulation, or solid wall insulation for one property. It is less comprehensive than ECO4 but has broader reach, particularly for lower-income homeowners who do not receive benefits but live in older, draughty properties.

Because both schemes are running simultaneously in many areas, it is worth checking eligibility for both. Some households qualify for ECO4 for a full package of measures and GBIS would be secondary, while others might only qualify for GBIS but still get a meaningful improvement to their home's energy performance.

The Boiler Upgrade Scheme: £7,500 Toward a Heat Pump

The Boiler Upgrade Scheme (BUS) is aimed at homeowners who want to replace an existing fossil fuel boiler with a heat pump or biomass boiler. Unlike ECO4 and GBIS, BUS is not means-tested -- it is available to any eligible property owner, regardless of income.

The grant amount for 2026 is £7,500, applicable to air source heat pumps (ASHPs), ground source heat pumps (GSHPs), and biomass boilers in rural off-gas-grid properties. The grant is paid directly to your MCS-accredited installer, reducing the upfront cost you pay.

To qualify, your property must have adequate insulation (a recommendation from your installer following a survey), and you cannot already have had a BUS grant on the same property. Social housing and new builds are excluded.

The actual cost of a heat pump installation varies significantly. Air source units typically cost £8,000 to £15,000 installed, depending on property size and complexity. With the £7,500 grant, a straightforward ASHP installation could cost as little as £500 to £7,500 out of pocket. Ground source heat pumps are considerably more expensive (£15,000 to £35,000) but the same £7,500 grant applies.

The Warm Homes Plan: What's Coming Next

The Warm Homes Plan is Labour's flagship home energy policy, announced in the 2024 manifesto and being developed for rollout from 2025 onwards. It represents a significant expansion of support compared to current schemes.

The Plan aims to invest £6.6 billion over the Parliament in upgrading homes, with a focus on social housing first and then the wider private rented and owner-occupied sectors. Key pledges include free or low-cost insulation upgrades for millions of homes, grants and low-interest loans for heat pumps and low-carbon heating, and an expanded eligibility base compared to ECO4.

As of 2026, the full detail and delivery timeline of the Warm Homes Plan is still being confirmed. The government has consulted on wave one (social housing upgrades) and is developing the private sector strand. Watch for announcements from the Department for Energy Security and Net Zero (DESNZ) for specific eligibility criteria and application windows.

If you are considering major home energy improvements in 2026, it may be worth delaying some projects to see whether the Warm Homes Plan delivers broader or more generous grants than currently available. However, if you qualify for ECO4 or BUS now, there is no guarantee future schemes will be more generous for your specific circumstances.

How to Apply for Green Home Grants

The application process varies by scheme, but there are some consistent steps across all of them.

For ECO4 and GBIS, start with the Simple Energy Advice service at simpleenergyadvice.org.uk, which takes you through eligibility questions and connects you with local installers. Your energy supplier may also have a referral process. Some local authorities run their own referral schemes, particularly where they have been awarded additional funding through the Local Authority Delivery (LAD) scheme.

For the Boiler Upgrade Scheme, find an MCS-accredited heat pump installer in your area. The installer handles the grant application on your behalf -- you do not submit it directly. The installer claims the voucher from Ofgem and deducts it from your invoice. Check the Ofgem and MCS websites for accredited installer lists.

Always get multiple quotes, even for grant-funded work. Under ECO4, the work is funded by energy companies whose primary interest is meeting their obligation targets -- comparing offers from different installers ensures the work proposed is genuinely appropriate for your property.

Energy Efficiency and Long-Term Savings

Beyond the grants themselves, improving your home's energy efficiency has measurable long-term financial benefits. A home upgraded from EPC band E to band C can save several hundred pounds per year in heating costs, with the exact figure depending on property size, location, and heating patterns.

A better EPC rating also increases property value. Research consistently shows that properties in higher energy bands sell for more and spend less time on the market. Buyers and mortgage lenders increasingly factor energy performance into valuations, and from 2025 minimum EPC requirements for rented properties have been a growing policy area.

For landlords specifically, the minimum energy efficiency standard (MEES) applies to rented properties. While current enforcement levels vary, the direction of travel is clear: lower-rated rental properties face either grant-funded improvement or restrictions on letting. ECO4 can fund work in privately rented homes where the tenant meets the benefit criteria.

Maximising the available grants now -- especially ECO4, which carries no cost to eligible households -- is one of the most immediate ways to reduce ongoing household bills and future-proof your home against tightening regulations.