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ECO4 Ended March 2026 — New Scheme Now Available

ECO4 Grant Has Ended — The Warm Homes Local Grant Is Now Open

The ECO4 scheme closed in March 2026. Its replacement — the Warm Homes: Local Grant — offers up to £15,000 for eligible households in Bristol and Somerset, covering solar panels, heat pumps, and insulation. D&R Energy can check your eligibility free of charge.

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ECO4 Closed — March 2026

The Energy Company Obligation 4 (ECO4) scheme closed on 31 March 2026 and is no longer accepting applications. If you were hoping to access ECO4 funding, the Warm Homes: Local Grant is the primary replacement scheme, with very similar eligibility criteria and up to £15,000 available for qualifying households.

What Was the ECO4 Grant Scheme?

The Energy Company Obligation 4 (ECO4) was the UK government's flagship energy efficiency scheme, designed to reduce fuel poverty and lower carbon emissions from the country's least energy-efficient homes. Funded by the major energy suppliers, the ECO4 scheme provided fully funded or heavily subsidised energy efficiency improvements to eligible households across England, Scotland, and Wales from 2022 to March 2026.

Solar panels, air source heat pumps, insulation, and other energy-saving technologies were all funded under ECO4. The scheme targeted households in EPC-rated D–G properties with incomes below approximately £31,000 (or on qualifying benefits). D&R Energy completed numerous ECO4-funded installations for Bristol and Somerset households during the scheme's operation.

The successor scheme — the Warm Homes: Local Grant — is now the primary route to funded energy improvements. It offers similar eligibility criteria and can provide up to £15,000 for qualifying households. D&R Energy continues to assist eligible homeowners in accessing this funding.

The Warm Homes: Local Grant — What's Available Now

The Warm Homes: Local Grant (WHLG) is delivered by local councils across England — in our area through Bristol City Council, Bath & North East Somerset, North Somerset, and Somerset Councils. It offers up to £15,000 per household for energy improvements including solar panels, battery storage, air source heat pumps, and insulation.

Households with incomes below approximately £36,000 per year and EPC ratings of D–G are the primary target. Somerset properties — particularly off-gas-grid homes — receive additional weighting due to higher fuel poverty rates. In B&NES, Lendology CIC provides complementary interest-free loans for households who need top-up funding beyond the grant.

£15,000
Maximum grant value
Per eligible household
EPC D–G
Property requirement
Plus income threshold
Solar + battery
Measures covered
Heat pumps, insulation too

Warm Homes Local Grant: Eligibility Criteria

Eligibility for the Warm Homes: Local Grant is determined by a combination of household income and property EPC rating. The criteria are similar to ECO4 but with a higher income threshold, making the grant accessible to more households than ECO4 was.

Income Qualifying Routes

You may qualify through income threshold or qualifying benefits:

  • Household income below approximately £36,000/year
  • Universal Credit (all elements)
  • Pension Credit (Guarantee or Savings Credit)
  • Child Tax Credit or Working Tax Credit
  • Income Support
  • Income-based JSA or income-related ESA
  • Housing Benefit
  • Warm Home Discount (Core Group)

Property Requirements

Your property must meet the following conditions:

  • EPC rating of D, E, F, or G (the four lowest bands)
  • You own the property, or rent privately with landlord consent
  • Property must be in England (separate schemes for Wales and Scotland)
  • Suitable for the measures applied for (e.g. adequate roof for solar)
  • Off-gas-grid properties given additional weighting in Somerset
  • No significant structural issues preventing safe installation

Not Sure If You Qualify?

Grant eligibility can be complex, and there are additional pathways including Lendology interest-free loans (Somerset, B&NES, North Somerset) that may apply even if your income is above the threshold. D&R Energy can check your eligibility for the Warm Homes Local Grant, Lendology, and all other available schemes in a single free call.

Call D&R Energy on 0800 772 0758 for a free, no-obligation eligibility check. Our team can assess your situation and advise on the best route to funding.

What Does the Warm Homes Local Grant Cover?

When you qualify for the Warm Homes: Local Grant, the funding covers the full cost of approved measures up to £15,000. For most qualifying households, this means a complete solar PV system including panels, inverter, mounting hardware, wiring, and installation labour at no cost to you. The system is designed specifically for your property and becomes yours from day one.

The grant also funds complementary improvements alongside solar panels. If your home has poor insulation, the scheme may fund loft insulation, cavity wall insulation, or solid wall insulation to maximise the EPC uplift. In Somerset and B&NES, air source heat pumps are also eligible — combining solar panels with a heat pump-funded system achieves the greatest possible improvement to your energy bills.

The goal of the Warm Homes scheme is to improve your property's EPC rating to at least band C. Solar panels contribute significantly — combined with insulation improvements, a solar PV installation can move a property from EPC band D or E up to band C, dramatically reducing your annual energy costs. Once installed, you are also eligible for the Smart Export Guarantee to earn from surplus electricity exported to the grid.

How to Apply for the Warm Homes Local Grant with D&R Energy

1

Free Eligibility Check

Call D&R Energy on 0800 772 0758 or complete our online enquiry form. Our team will ask a few simple questions about your household income, benefits status, property type, and current EPC rating to determine whether you qualify for Warm Homes Local Grant funding. This initial check takes just a few minutes with no obligation.

2

Property Assessment

If you appear eligible, we arrange a free property survey at a time that suits you. Our MCS-certified surveyor visits your home to assess roof suitability, current insulation levels, and overall energy efficiency. We check your EPC certificate and identify all measures that could be funded alongside solar panels — including heat pumps and insulation.

3

Grant Application

D&R Energy handles the Warm Homes Local Grant application on your behalf, working directly with your local council's scheme administrator. We manage all the paperwork and keep you informed at every stage. For Somerset homeowners who need additional funding, we can simultaneously refer you to Lendology CIC for an interest-free loan application.

4

Installation

Once funding is approved, we schedule your installation at a convenient date. A standard domestic solar system typically takes 1–2 days. Our team handles everything: scaffolding, panel mounting, electrical wiring, inverter and battery installation, and grid connection. After installation, we register your system with MCS and help you set up the Smart Export Guarantee.

Benefits of a Funded Solar Installation

Receiving funded solar panels through the Warm Homes: Local Grant delivers immediate and long-term financial benefits. From the day your system is switched on, you start generating free electricity that reduces your energy bills. A typical funded solar system saves a household between £300 and £600 per year on electricity costs — with no upfront cost and no monthly payments, all savings are immediately yours to keep.

Over the 25+ year lifespan of your solar panels, total electricity savings can exceed £10,000–£15,000. You also benefit from the Smart Export Guarantee, which pays you for surplus electricity your panels generate that you do not use yourself. At Octopus SEG rates (15p/kWh), this can add a further £100–£200/year in income.

A funded solar installation also improves your property's EPC rating, which can increase its market value. Properties with solar panels typically sell for more than equivalent properties without them, and an improved EPC rating is increasingly important to buyers and mortgage lenders. Your home becomes more comfortable and more resilient to future energy price rises.

Funded Solar in Bristol and the South West

The Bristol and South West region has a significant number of properties that qualify for the Warm Homes: Local Grant. Over 120,000 properties in Bristol alone are rated below EPC C, and many households across North Somerset, Somerset, Bath, and Gloucestershire meet the income threshold. The South West also receives the highest solar irradiance in the UK, meaning grant-funded solar systems in our region generate more electricity than almost anywhere else in the country.

D&R Energy is based in Portishead, North Somerset, and serves the entire South West within approximately 50 miles of our headquarters. We helped numerous households access ECO4 funding during that scheme's operation, and we continue to assist eligible homeowners under the Warm Homes: Local Grant. Our local knowledge, MCS certification, and RECC membership mean you can trust us to deliver a high-quality installation that maximises your energy savings.

ECO4 & Warm Homes Grant FAQs

ECO4 was a government-backed scheme providing funded solar panels and heat pumps for eligible low-income households. The ECO4 scheme closed in March 2026 and is no longer accepting applications. It has been replaced by the Warm Homes: Local Grant, which offers up to £15,000 for eligible households. Contact D&R Energy for a free eligibility check on current schemes.

The Warm Homes: Local Grant is the primary replacement for ECO4, offering up to £15,000 for energy improvements including solar panels for households with incomes below approximately £36,000 and EPC ratings of D–G. The government's Warm Homes Plan Loan — offering 0% interest to all homeowners — is also launching in 2026/27. Call D&R Energy on 0800 772 0758 for a free eligibility check.

To qualify for the Warm Homes: Local Grant, your household income should be below approximately £36,000 per year and your property must have an EPC rating of D, E, F, or G. You must also own your home or be renting with landlord consent. The grant covers up to £15,000 towards solar panels, heat pumps, insulation, and other measures. D&R Energy can check your eligibility free of charge.

The Boiler Upgrade Scheme provides a £7,500 government grant towards an air source heat pump installation, replacing your gas or oil boiler. To be eligible, your property must have a valid EPC with no outstanding insulation recommendations. The grant is paid directly to your installer and reduces your upfront cost. D&R Energy can handle the full application process as part of your heat pump installation.

Landlords can access the Warm Homes: Local Grant for eligible tenants in privately rented properties (EPC D–G, tenant income below ~£36,000). There is no separate grant for market-rate landlords, but solar panels offer strong returns: higher rents (5–10%), shorter voids, MEES compliance, Smart Export Guarantee income, and capital appreciation. D&R Energy advises landlords across Bristol and Somerset on the best approach for their portfolio.

0% VAT applies to solar panels, inverters, and battery storage when installed as part of a solar PV system. EV chargers and air source heat pumps are not currently zero-rated and are subject to 20% VAT. The 0% VAT on solar and battery storage is confirmed until at least March 2027.

Yes — Lendology CIC offers interest-free (or low-interest) loans for home energy improvements including solar panels and battery storage for homeowners in Somerset, Bath & North East Somerset, and North Somerset. Loan amounts up to approximately £15,000 are available. D&R Energy can refer you to Lendology as part of your installation planning.

Off-gas properties — homes not connected to the mains gas grid — may be eligible for additional support under the Warm Homes: Local Grant. These homes, often heated by oil or LPG, are ideal candidates for combined solar and heat pump installations with grant funding. D&R Energy specialises in off-gas property renewable energy solutions.

Free Quote — No Obligation

Check Your Warm Homes Grant Eligibility Today

Call D&R Energy for a free, no-obligation eligibility check. If you qualify for the Warm Homes: Local Grant, we handle the entire application and install your solar panels at no cost to you.

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Typical Annual Saving
£2,300
per year on a 4.5kW + battery system
Bill reduced by up to 80%
0% 40% 80%
Bill reduction
70–80%
Payback period
5–8 years
System lifespan
25+ years

Based on South West averages. Actual savings vary.

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