top of page

Energy Saving Grants Blog

Stay up to date with the latest news related to Energy Saving Grants, energy ratings, Green Deal, and environmental issues effecting energy grants.

A Complete Guide on ECO3 Grant Scheme & Eligibility

In an era increasingly defined by a collective consciousness towards energy efficiency and environmental sustainability, the ECO3 grant is a cornerstone of the UK government's commitment to these ideals.

This comprehensive guide delves into the intricacies of the government ECO3 scheme, designed to provide vulnerable and low-income households with the means to enhance their energy efficiency and reduce their carbon footprint.

This guide will also explain eligibility, the application process, and the far-reaching benefits of this pivotal scheme, ensuring readers are well-informed about accessing and utilizing the support offered through this progressive initiative.

The Energy Company Obligation Scheme

The Energy Company Obligation (ECO) is a scheme established to encourage the installation of energy-efficient home improvements that contribute to more comfortable living conditions, lower carbon emissions, and a reduction in fuel poverty through its grant provision.

From 2018 to 2022, the government has tailored the obligation to priorities fuel-poor households, those with low income or who are particularly susceptible to the cold.

Under ECO3, grants are accessible to subsidies the expenses associated with energy-saving installations, such as new boilers, loft insulation, and wall insulation—amenities these households might otherwise struggle to afford.

These improvements are designed not only to enhance warmth in homes but also to provide significant savings on energy bills and contribute to reducing carbon footprints.

The ECO3 Grant Scheme's Goals

The government ECO3 grant scheme is committed to transforming our energy landscape into smarter, greener, and more resilient, ensuring it remains affordable for future generations.

This vision includes developing a reliable energy system that is both cost-effective and environmentally friendly. In line with this objective, the government has joined forces with energy suppliers to roll out energy efficiency improvements across British homes, prioritizing assistance for those with lower incomes and greater vulnerability.

The ECO3 scheme has set forth its primary goals as follows:

  • Facilitating replacement of up to 35,000 faulty heating systems annually to support households without a working heater.

  • Promoting the installation of multiple energy-saving measures by permitting the upgrade of inefficient heating systems (beyond the allocated quota for broken system replacements) when paired with insulation efforts.

  • Expanding the portion of the initiative that local authorities can deliver through flexible eligibility criteria to 25%.

  • Mandating that 15% of the energy-saving measures are implemented in rural residences.

  • Ensuring that a minimum of 17,000 homes with solid walls receive upgrades each year, which could be through solid wall insulation or a mix of other technologies that provide equivalent energy savings for the property.

What Facilities Are Available In The Government ECO3 Scheme?

The ECO3 funding program offers a variety of energy efficiency improvement measures tailored to enhance your home's energy rating:

  • Cavity Wall Insulation: Poorly insulated homes can lose about a third of their heat through walls. Cavity wall insulation could be a game-changer, substantially lowering your energy costs.

  • Gas Boiler Upgrade: If your current gas boiler is outdated and falls within OFGEM's specified criteria, it could be replaced with an A-rated boiler, either entirely funded or significantly reduced cost under ECO3.

  • Electrical Heating Upgrade: Replace costly and inefficient electrical heaters with cutting-edge Electrical Storage Heaters, provided you meet the ECO3 scheme's standards.

  • Loft Insulation: As noted by Which magazine, loft insulation can cut your energy expenses by up to £215 annually. You may qualify for a top-up if your insulation doesn't meet the recommended thickness.

  • Solid Wall Insulation: Since around 45% of heat can escape through solid walls, insulating them can save you between £115 and £415 on your annual heating bills, especially pertinent since a third of UK homes have concrete walls.

  • Doors and Windows: ECO3 might cover upgrades to your external doors and windows if they contribute to energy inefficiency. The Green Homes Grant provides vouchers for up to £10,000 for primary insulation measures.

The Eligibility Criteria For ECO3 Grants

Under the government ECO3 scheme, the Home Heating Cost Reduction Obligation (HHCRO) mandates that mid to large-scale UK energy suppliers endorse installations that yield substantial energy bill savings, such as insulation and upgraded heating systems. Here's a brief rundown of each ECO3 scheme eligibility criteria:

  1. Armed Forces Independence Payment: Support veterans with injuries impacting their daily lives.

  2. Attendance Allowance: Aid for individuals with severe disability and need care.

  3. Carer's Allowance: Assistance for those caring for someone with substantial disabilities.

  4. Child Benefit: Provision for families, depending on meeting specific income thresholds.

  5. Constant Attendance Allowance: Grants for those who require daily care due to a disability.

  6. Disability Living Allowance: Support those with disabilities requiring assistance or mobility support.

  7. Pension Guarantee Credit: Top-up for seniors to ensure a minimum income level.

  8. Income-related Employment and Support Allowance (ESA): Help for those unable to work due to illness or disability based on income.

  9. Income-based Jobseeker's Allowance (JSA): Financial aid for those actively seeking employment and on low incomes.

  10. Income Support: Additional support for low-income people who do not qualify for JSA or ESA.

  11. Industrial Injuries Disablement Benefit: Compensation for those disabled due to work-related diseases or accidents.

  12. Mobility Supplement: Funding to help cover mobility needs for those with disabilities.

  13. Personal Independence Payment: Benefit for those with long-term ill health or disability.

  14. Severe Disablement Allowance: Support for those unable to work due to illness or disability.

  15. Tax Credits (Child Tax Credits and Working Tax Credits): Tax relief for those responsible for children or working on low incomes.

  16. Universal Credit: A consolidated benefit for low-income or out-of-work.

Other Important Factors For ECO3 Scheme Eligibility

  • Tenure is not an obstacle; the ECO scheme benefits homeowners and tenants.

  • Tenants require consent from landlords, social housing authorities, or property management firms to participate.

  • No specific energy company must be approached for an ECO3 grant; all must meet government-imposed reduction targets.

  • ECO3 installers can seek funding for energy-saving measures from any qualifying energy company.

  • Homes with outdated heating systems and poor insulation, particularly those with cavity walls or older construction, often have a higher success rate for receiving fully funded improvements.

  • Inefficiency leads to eligibility: the less efficient a home's heating, the greater the chance of securing fully funded energy efficiency measures.

  • Non-gas heated homes, particularly those without gas boilers, have a significant advantage in obtaining total funding for measures under the scheme.

How Can I Apply For The Scheme?

To apply for the ECO3 grant, follow these steps:

  1. Check Eligibility: Verify if you qualify for the ECO3 scheme based on your income and whether you receive certain government benefits.

  2. Assess Your Property: Determine the energy efficiency measures that your property requires. This could be insulation, a boiler upgrade, or any other measure covered by ECO3.

  3. Contact Energy Suppliers or Installers: Reach out to medium or large energy suppliers or accredited installers participating in the ECO3 scheme.

  4. Acquire Consent (If Renting): If you're a tenant, obtain permission from your landlord, social housing provider, or property management company.

  5. Complete an Application: Fill out the ECO3 grant application with the help of your chosen supplier or installer. They will guide you through the process and may survey your property.

  6. Survey and Approval: An assessor may visit your home to confirm the required work. Once approved, your energy supplier or installer will arrange to install the measures.

Remember to gather all necessary documentation related to your benefits and income before starting the application process. The energy supplier or installer will inform you of any documents needed to proceed with your application.


In summary, the ECO3 grant is an essential element of the UK's strategy to foster energy-efficient homes, prioritizing support for those in low-income and vulnerable situations. This guide has outlined the paths to accessing these grants, from assessing eligibility to the final application steps.

The scheme is a testament to the government's dual commitment to environmental sustainability and social welfare, providing a tangible means for households to contribute to a greener future while enjoying the warmth and economic benefits of an energy-efficient home.

Read more: Is ECO4 Funding Right For Me?

Featured Posts
Follow Us
  • Energy Saving Grants on Facebook
  • Energy Saving Grants on Twitter
  • Energy Saving Grants on Pinterest
  • Energy Saving Grants on Instagram
Check Your Eligibility Using Our Grant Checker

Please ensure that all information provided below is 100% accurate. Any errors in your personal information could delay or prevent you qualifying for a government funded grant.

Please note that you do not necessarily need to be in receipt of tax credits or benefits as we still may be able to obtain funding for you via your Council or through other funding schemes.

bottom of page