The way we power our homes is changing, and we're dedicated to helping you navigate that shift towards a greener, more affordable future. The UK government is continuously developing initiatives to make our homes more energy efficient, reduce carbon emissions, and tackle fuel poverty. The latest evolution in this commitment is the upcoming ECO5 scheme, set to launch in April 2026.
This scheme promises to be a significant step forward, building on the successes of its predecessors to bring sustainable energy solutions and warmer homes to more households across the country.
We understand that getting to grips with government schemes can feel a bit overwhelming, but that's where we come in. We're here to explain what the ECO5 scheme means for you, how it aims to support the nation's net zero ambitions, and how you might be able to benefit from its offerings.
What is the ECO5 scheme?
The ECO5 scheme is the eagerly anticipated next phase of the Energy Company Obligation (ECO) scheme, a cornerstone of the UK government's efforts to drive energy efficiency improvements in homes. This initiative places a legal obligation on large energy suppliers, like us, to fund the installation of energy-saving measures for eligible households.
Think of it as a rolling programme of positive change. The ECO scheme has been running for a number of years, with each phase adapting to the evolving energy landscape and the nation's environmental targets. ECO5 is designed to pick up where ECO4 leaves off, taking the commitment to energy efficiency even further.
ECO4 versus ECO5: Understanding the evolution.
While ECO5 is a direct successor to ECO4, it's not simply a continuation. Each iteration of the ECO scheme brings refinements and new focuses. ECO4, for instance, introduced a "whole-house" approach, encouraging comprehensive improvements rather than just single measures. It has been instrumental in delivering upgrades like insulation and heating system improvements, primarily targeting low-income and vulnerable households.
As we look towards the ECO5 scheme, the discussions and early indications suggest a stronger emphasis on cutting-edge technologies and potentially broader eligibility criteria that might even consider the carbon footprint of individual households. This signifies a move towards more advanced, long-term solutions for sustainable living. The core principle, however, remains the same: helping those who need it most to create warmer, more affordable, and environmentally friendly homes.
When will the ECO5 scheme start?
The current ECO4 scheme is scheduled to conclude in March 2026. Following this, the ECO5 scheme is planned to start in April 2026. While the exact timings and full details will be confirmed closer to the launch by the Department for Energy Security and Net Zero (DESNZ) and Ofgem, this timeframe gives us a clear indication of when households can expect to potentially benefit from the next wave of energy efficiency support.
What is the purpose of the ECO5 scheme?
At its heart, the ECO5 scheme is designed with several goals, all aimed at creating a more sustainable energy future for the UK.
Supporting net zero targets.
The UK has ambitious targets to reach net zero carbon emissions by 2050. The heating and energy consumption of our homes contribute to these emissions. ECO5 will play an important role in decarbonising the housing stock by promoting the installation of low-carbon heating systems and highly efficient insulation, directly contributing to these vital environmental goals.
Aiming to reduce fuel poverty.
Fuel poverty remains a pressing issue in the UK, where households struggle to afford to heat their homes adequately. By improving the energy efficiency of properties, ECO5 aims to significantly reduce energy bills for eligible households.
A warmer home that costs less to heat can have a profound impact on the health, wellbeing, and financial stability of families. It's about ensuring everyone has access to a comfortable living environment, regardless of their income.
Improving energy efficiency in homes.
This is the direct and tangible outcome of the scheme. Whether through better insulation, more efficient heating, or renewable energy installations, the overarching goal is to make homes consume less energy. This not only benefits the environment and household budgets but also contributes to a more resilient national energy system.
What could the ECO5 scheme offer?
While the precise list of measures and their funding levels will be finalised closer to the ECO5 scheme launch, based on past ECO schemes and current energy efficiency trends, we can anticipate a focus on a range of impactful upgrades designed to create genuinely energy-efficient homes. These are likely to include:
Home insulation.
Often considered the foundational element of an energy-efficient home, insulation measures are essential for preventing heat loss. This could encompass:
Loft insulation: Preventing heat from escaping through the roof, one of the easiest and most cost-effective improvements.
Cavity wall insulation: Filling the gap between inner and outer walls to reduce heat transfer.
Solid wall insulation (internal or external): A more involved but highly effective measure for older properties without cavity walls.
Underfloor insulation: Addressing heat loss through the ground floor, particularly in older homes.
Ensuring homes are properly insulated significantly reduces the amount of energy needed to keep them warm, leading to substantial bill savings.
Air source heat pumps.
These are a cornerstone of the UK's move away from fossil fuel heating. Air source heat pumps extract heat from the outside air, even when it's cold, and use it to warm your home and hot water. They are highly efficient, produce significantly lower carbon emissions than traditional boilers, and align perfectly with net zero objectives. ECO5 is expected to strongly promote their adoption.
Solar panels.
Generating your own electricity from sunlight is a great way to reduce reliance on the grid and lower your electricity bills. Solar panels convert sunlight into usable electricity, and any excess can often be exported back to the grid, potentially earning you money.
As the cost of solar technology continues to fall, their inclusion in ECO5 would be a logical step towards household energy independence and decarbonisation.
Battery storage.
Complementing solar panels, solar battery storage systems allow households to store excess electricity generated during the day for use in the evening or at night. This maximises the benefits of solar power, reduces reliance on grid electricity during peak times, and can offer greater energy security.
While perhaps a more advanced measure, its potential inclusion highlights a forward-thinking approach for ECO5.
Smart heating controls.
Modern heating controls go beyond simple thermostats. They allow for precise management of your home's heating, optimising energy use, and preventing waste. Features like zonal heating (heating only the rooms you're using), smart programming, and remote control via apps can lead to significant energy savings and enhanced comfort.
Their inclusion would ensure that homes benefiting from ECO5 measures also have the tools to manage their energy use intelligently.
Who will be eligible for the ECO5 scheme?
While the final eligibility criteria for the ECO5 scheme will be set by the government, the overarching aim of the Energy Company Obligation has always been to direct support towards those who need it most. Based on previous schemes, we anticipate the following key areas of eligibility:
Priority for low-income and vulnerable households.
This has been a consistent focus across all ECO phases. Households receiving certain means-tested benefits are typically a primary target group. This ensures that the scheme directly addresses fuel poverty and provides a lifeline to those struggling with high energy costs.
Homes with poor EPC ratings (D or lower)
The Energy Performance Certificate (EPC) rating gives a snapshot of a home's energy efficiency. Properties with lower ratings (typically E, F, or G) are the least efficient and have the most to gain from energy-saving improvements. ECO5 is expected to continue prioritising these homes, as improving their energy performance offers the biggest potential for carbon reduction and bill savings. It's likely that a focus will remain on upgrading homes to a certain minimum EPC rating, helping to elevate the overall energy efficiency of the UK's housing stock.
It's also worth noting that "Local Authority Flexible Eligibility" (LA Flex) routes have become increasingly important. This allows local authorities to identify and refer households that may not receive traditional qualifying benefits but are still considered vulnerable due to low income, health conditions, or other factors exacerbated by living in a cold or damp home. This route helps to ensure that support reaches a broader spectrum of those in need, beyond a strict benefits-only approach.
How we can help you prepare for ECO5.
Even though ECO5 is still a little while away, there are steps you can take now to understand your home's energy efficiency and see if you might be eligible for current schemes, or simply to be better prepared for future opportunities.
We are a proud participant in the Energy Company Obligation scheme, and we are committed to helping our customers make their homes warmer, greener, and more affordable. We already support eligible households through the current ECO4 scheme with various energy-saving improvements as well as the Great British Insulation Scheme.
We recommend:
Checking your current EPC rating: You can usually find this on the government's official EPC register. Understanding your home's current energy performance is the first step towards improvement.
Exploring existing support: Don't wait for ECO5 if you might qualify for help now! We provide information and pathways to apply for all government grants if you're eligible. It's always best to take advantage of available support as soon as possible.
Staying informed: The details of ECO5 will become clearer as we get closer to April 2026. We will be at the forefront of this information, and we'll keep our customers updated on the latest developments, eligibility criteria, and how to apply.
The ECO5 scheme represents a significant commitment to improving energy efficiency across the UK, contributing to a healthier planet and more comfortable, affordable homes. We're excited about the potential of this next phase and are ready to help you every step of the way towards a more sustainable home.