Government-backed energy schemes can be confusing. Many homeowners hear about funding for solar panels, insulation or heating upgrades but aren’t sure which scheme applies to them.
One scheme many people are already familiar with is ECO4, which funded energy efficiency improvements in UK homes for several years. However, ECO4 has now ended, and the government is introducing new initiatives aimed at continuing the push to make homes warmer and cheaper to run.
One of the programmes receiving the most attention is the Warm Homes Plan.
While the two schemes share similar goals (improving home energy efficiency and reducing energy bills) they are structured differently and may offer funding in different ways.
If you’re wondering how the new Warm Homes Plan compares to ECO4, here’s a simple breakdown of the key differences.
First, A Quick Note About the Warm Homes Plan
It’s worth noting that the Warm Homes Plan has not fully launched yet, and the final details are still being confirmed.
However, based on previous government-backed energy schemes with similar goals, we can make some reasonable assumptions about how it will work and who it is likely to support.
Many of the expected upgrades under the Warm Homes Plan mirror improvements already delivered through ECO4, such as insulation, heating upgrades and renewable energy systems.
What Is ECO4?
The Energy Company Obligation (ECO) was a long-running government programme that requires large energy suppliers to fund energy efficiency improvements in UK homes.
ECO4 focused on helping households living in poorly insulated homes or experiencing fuel poverty.
Under ECO4, improvements were typically fully funded, meaning qualifying households can receive upgrades without paying for them themselves.
Common ECO4 improvements included:
- Loft insulation
- Cavity wall insulation
- Internal wall insulation
- Heating system upgrades
- Air source heat pumps
- Solar panels in some cases
The scheme prioritises homes with low EPC ratings (D–G) and households receiving certain benefits.
What Is the Warm Homes Plan?
The Warm Homes Plan is expected to be a broader national initiative designed to upgrade millions of UK homes.
While ECO4 focused heavily on improving the least efficient homes, the Warm Homes Plan is expected to expand support and funding for energy upgrades across a wider range of households.
The programme is likely to support improvements such as:
- Solar panels
- Battery storage
- Insulation upgrades
- Heating system improvements
- Energy efficiency improvements
Key Differences Between Warm Homes Plan and ECO4
1. Who Delivers the Scheme
ECO4
- Delivered by large energy suppliers
- Installations are carried out by approved contractors
- Expected to involve government funding distributed through local authorities and national programmes
- May include several different grant streams
2. Who Qualifies
ECO4
- Typically limited to households receiving certain benefits
- Focuses heavily on fuel poverty
- Prioritises homes with low EPC ratings
Warm Homes Plan
- Expected to support a wider group of households
- May include additional grants beyond benefit-based eligibility
- Likely to target homes needing energy efficiency improvements
3. Types of Upgrades
Both schemes aim to improve home efficiency, but the Warm Homes Plan may place greater emphasis on renewable technologies.
ECO4 upgrades included:
- Insulation improvements
- Heating system replacements
- Heat pumps
- Solar panels in some circumstances
Warm Homes Plan upgrades may include:
- Solar panels
- Battery storage
- Insulation upgrades
- Heating improvements
- Whole-home energy efficiency upgrades
4. Funding Structure
ECO4
- Funded by energy suppliers
- Funding is typically limited to households meeting strict eligibility requirements
Warm Homes Plan
- Government-funded initiative
- Expected to offer additional grants and funding streams
Why Getting the Right Advice Matters
Energy efficiency funding can be complex, and every home is different.
The best approach is to have a professional assessment that considers:
- Your property’s EPC rating
- Current insulation levels
- Heating system efficiency
- Roof suitability for solar panels
- Eligibility for funding schemes
A properly designed upgrade can significantly reduce energy bills while improving comfort in your home.
Next Steps
Both ECO4 and the Warm Homes Plan are part of the UK government’s wider effort to improve home energy efficiency and reduce household energy costs.
While ECO4 previously supported households most affected by fuel poverty, the Warm Homes Plan is expected to continue that work, potentially expanding funding opportunities and helping more homes access energy-saving upgrades in the years ahead.
If you’re unsure whether your home may qualify for support under the Warm Homes Plan or other upcoming schemes, the best step is to speak with an installer who understands the evolving funding landscape and can guide you through the available options.
Simply fill out the form below or give us a call on 01422 768113.