The government's Warm Homes Plan sets out that the Energy Company Obligation (ECO4) will run until 31 December 2026 instead of its original end date of 31 March, but with no additional funding1. The Plan was published in January 2026 and describes a £15 billion investment in upgrading UK homes, backed by £5 billion of public investment1.
MCS, the certification body for small-scale renewables, reports that the extension is intended to allow additional time for remediation of non-compliant installations and to support an orderly closure of the team1. It states that the government will provide further updates on support for low-income households in Spring 2026, which it says means there will likely be a gap between the new funding and the end of ECO41.
"ECO4 will run until 31 December 2026, instead of its original end date of 31 March, but with no additional funding"
The two accounts differ on what replaces ECO4. MCS describes the Plan as following the announcement that ECO4 would be coming to an end, without naming a successor1. OVO states there will be no ECO5 and that ECO4 is being replaced by the Warm Homes Local Grant, as delivery moves from energy supplier funding to direct government grants2. OVO also reports that ECO4 covers Great Britain, while the Boiler Upgrade Scheme covers England and Wales2.
| Scheme | What it covers | Status |
|---|---|---|
| ECO4 | Free insulation, heat pumps and solar panels for low-income households on qualifying benefits | Open until December 20262 |
| Boiler Upgrade Scheme | £7,500 for air-to-water heat pumps, £2,500 for air-to-air; £9,000 for oil or LPG homes from 21 July 2026 to 31 March 2027 | Open, confirmed to 2030 with a £2.7 billion budget2 |
| Warm Homes: Local Grant | Upgrades up to £15,000 via local council | Rolling out from 20262 |
| Warm Homes Fund loans | Low or zero interest loans for solar, batteries and heat pumps | Details expected later in 20262 |
MCS lists the measures in its scope covered by the Plan as solar panels (PV and thermal), ground source heat pumps, air-to-air heat pumps, air-to-water heat pumps, battery storage and thermal energy storage systems, also known as heat batteries1. It reports that the Boiler Upgrade Scheme has been confirmed to run until 2030 and that air-to-air heat pumps and heat batteries were added to it1. OVO reports that the requirement to have no outstanding insulation recommendations on an EPC before accessing the Boiler Upgrade Scheme grant was removed in April 20262.
Why it matters for households
For a household relying on ECO4, the extension to 31 December 2026 keeps the route to free insulation, a heat pump or solar panels open for nine months longer than previously scheduled, but the funding pot behind it is unchanged1. MCS's account of a likely gap between the end of ECO4 and new support for low-income households means the timing of an application within the extended window is the variable a household can act on, rather than the size of the scheme1. The Plan's stated aim is upgrading 5 million homes by 20302. For homes not on qualifying benefits, the confirmed support sits mainly in the Boiler Upgrade Scheme, which is not means tested and covers England and Wales, and in the 0% VAT treatment of solar panels, battery storage and heat pumps, which OVO reports is confirmed until 20272. The loan scheme intended to widen access to solar and batteries has no published rates or terms2.
What happens next
Further government updates on support for low-income households are expected in Spring 20261. Details of the Warm Homes Fund loan scheme, including interest rates, loan terms and how to apply, are expected later in 2026, and the exact income thresholds and eligibility criteria for the Warm Homes Local Grant are still being finalised by local councils2. OVO reports that the Warm Homes Agency, intended as a single point of contact for home upgrade advice, is expected to start delivering services from 20272.
Sources2 cited
- Warm Homes Plan: key takeaways for the small-scale renewables sector - MCS, mcscertified.com
- UK Warm Homes Plan: Solar Panels & Heat Pump Grants Explained | OVO, solar-and-heating.ovo.com