The fourth Energy Company Obligation, known as ECO4, runs until 31 December 2026. It is the scheme behind many adverts for “free” energy improvements, including some for solar panels. If you think you might qualify, the next few months are the time to find out.
What ECO4 is, and isn’t
ECO is an obligation on energy companies to fund energy-efficiency improvements in homes. Ofgem is clear that it is not a grant scheme. The energy companies decide which projects they fund, how much they fund and which installers they work with. So there is no guarantee of any particular measure, and solar panels may or may not be offered.
Who can qualify
- The home is rated EPC D to G.
- You qualify through certain benefits, or through ECO4 Flex, where the local council refers households that meet its own criteria.
- You may be asked to contribute to the cost.
If you are in Birmingham and think you might qualify through ECO4 Flex, ask Birmingham City Council. For the benefits route, contact an energy company that takes part in ECO4. Ofgem notes you can get help from a participating energy company even if you are not its customer.
Watch out for cold callers
Ofgem says installers working on ECO projects may approach people directly. Some approaches are genuine and some aren’t. Before you agree to anything:
- ask which energy company is funding the work, then check with that company yourself
- don’t agree to work without a written contract, which Ofgem also advises
- don’t hand over bank details on the doorstep or over the phone
If you don’t qualify
Most Birmingham homeowners won’t qualify for ECO4, and that is normal. The help most people can use is the 0% VAT rate on home solar until 31 March 2027. Birmingham City Council’s Switch Together Birmingham group-buying scheme is another option to compare, although it is not a grant either. Are there solar panel grants in Birmingham? covers all of it.
Not eligible for ECO4?
Get a free quote and see what solar would cost and save you.