Update — April 2026
The ECO4 scheme closed on 31 March 2026. This article has been updated to cover the replacement scheme — the Warm Homes: Local Grant — which is now accepting applications through Bristol City Council, Somerset Council, and other local authorities.
The Energy Company Obligation 4 (ECO4) was the UK government's flagship scheme for improving energy efficiency in low-income households. It closed on 31 March 2026 and is no longer accepting applications. However, funded solar installations are still available through its replacement — the Warm Homes: Local Grant — which offers up to £15,000 for qualifying energy improvements delivered through local authorities.
What Was ECO4?
ECO4 was the fourth phase of the Energy Company Obligation, which ran from 2022 to March 2026. Large energy suppliers were legally required to fund energy efficiency improvements in low-income homes. The cost was ultimately borne by all energy customers through their bills. Energy suppliers contracted with approved installers — including D&R Energy — who carried out the work. D&R Energy completed numerous ECO4-funded installations across Bristol and Somerset during the scheme's operation.
Warm Homes: Local Grant — The Replacement
The Warm Homes: Local Grant is the government's successor to ECO4, delivered through local authorities rather than energy suppliers. It provides up to £15,000 for qualifying energy improvements including:
- Solar panels (solar PV): Photovoltaic panels to generate electricity from sunlight.
- Battery storage: To store surplus solar energy for evening and overnight use.
- Heat pumps: Air source heat pumps to replace inefficient gas, oil, or electric heating.
- Insulation: Loft insulation, cavity wall insulation, solid wall insulation, and underfloor insulation.
Like ECO4, the Warm Homes: Local Grant takes a whole-house approach, aiming to bring properties up to EPC band C where possible by combining multiple improvements.
Eligibility: Who Qualifies?
The Warm Homes: Local Grant has wider eligibility than ECO4. To qualify, you typically need to meet both of these conditions:
- Financial eligibility: Household income below approximately £36,000 per year, or be in receipt of a qualifying means-tested benefit (Universal Credit, Pension Credit, Housing Benefit, Child Tax Credit, Working Tax Credit, Income Support, Income-based JSA, or Income-related ESA).
- Property energy efficiency: Your home must have an EPC rating of D, E, F, or G. Properties rated A, B, or C are generally not eligible.
The £36,000 income threshold is a significant improvement over ECO4's benefits-only criteria, meaning more working households now qualify. Owner-occupiers and private tenants can both apply.
Bristol City Council and Somerset Council's Role
Unlike ECO4 (which was delivered by energy suppliers), the Warm Homes: Local Grant is administered by local authorities. Bristol City Council, Somerset Council, and Bath & NES Council all participate in delivering the scheme. They identify eligible households, process applications, and work with approved installers like D&R Energy to carry out the improvement work.
If you are unsure whether you qualify, contacting Bristol City Council's energy efficiency team or Somerset Council's warm homes service is a good first step. Alternatively, D&R Energy can check your eligibility directly and handle the application process on your behalf.
What "Funded" Really Means
The Warm Homes: Local Grant provides up to £15,000. For many measures — particularly insulation and solar panels — this covers the full cost. For more extensive packages (such as solar + battery + heat pump combined), the grant may not cover the entire cost and a homeowner contribution may be required. D&R Energy will always be transparent about whether a contribution is needed and how much it will be before any work begins.
Other Available Funding
If you do not qualify for the Warm Homes: Local Grant, other options are available:
- Boiler Upgrade Scheme: £7,500 towards an air source heat pump (no income criteria).
- 0% VAT on solar panels: Saving approximately £1,200–£1,800 on a typical installation (available to all homeowners until March 2027).
- Lendology CIC: Interest-free loans for home energy improvements in Somerset, B&NES, and North Somerset.
- Smart Export Guarantee: Earn money for surplus solar electricity exported to the grid.
Our dedicated solar grants page provides a comprehensive overview of all available funding. You can also explore our area-specific pages for solar panels in Bristol and solar panels in Somerset.
How to Apply
The simplest way to apply is through D&R Energy, who can check your eligibility and manage the entire process on your behalf. Contact us today for a free eligibility check, or visit our grants page for full details on the Warm Homes: Local Grant and other available schemes.
