ECO4 Scheme Scotland Grant Eligibility Check

Solar panel grant Scotland

Get ECO4 grant funding for heat pumps, solar panels & insulation in Scotland.

Homeowners and private tenants in Scotland can now claim a 100% grant for energy saving measures. Eligible households can reduce their heating bills by up to 70% under the new grant scheme.


ECO4 Scheme Eligibility Check

ECO4 Scheme Eligibility Check

Does a member of your household claim any of the following benefits? (select all that apply)

"If you or a member of your household claim child benefit your TOTAL HOUSEHOLD INCOME must be below a certain threshold.

If you do not claim any other benefits please visit the following link to find out more about child income thresholds.

ECO4 Child Benefit Grants>>

What type of home improvement grant interests you? (All measures are free of charge)

Type of grant you are interested in (check all that apply)

About your property

Your Contact Details

Reduce energy bills and improve your carbon footprint with a 100% Free ECO grant.

ECO grants are designed to help households in Scotland deemed to live in fuel poverty, where 10% of gross household income is spent on heating and electricity bills. Funding is now available for solar panels, air source heat pumps, and a variety of home insulation measures, including loft insulation and wall insulation.

Making your home more energy efficient can reduce electricity and heating costs by up to 70%. To qualify, you, or someone who lives with you, must meet the following criteria:

  • Your home must have a low EPC rating (E or below).
  • Someone who lives in the property must claim a means tested benefit.
  • Your property must be off the gas grid and heated by electric heaters, an LPG boiler , or an oil boiler.

If you meet the ECO4 eligibility criteria, you should be eligible for a heating upgrade, solar panels, and insulation. In addition to substantial energy savings, this will improve your energy rating by at least two bands, and add value to your property.

ECO grant FAQ’s

The latest version of the Energy Company Obligation (ECO4) provides grant funding for free heat pumps and specific types of insulation measures for properties in Scotland with a low energy rating, and that are off the main gas grid.

What types of insulation and heating grants are available under ECO4?

The latest edition of the government-backed grant scheme differs from earlier versions. Initially, funding grants were available for single measures, including loft and wall insulation and some replacement boilers. The new version is more focused on the “whole house approach.”

ECO Installers are now obliged to carry out a complete assessment of your property. They must consider all aspects of your home and determine where energy saving improvements may be installed.

Viable ECO4 measures include:

  • Casity wall insulation
  • Solid internal wall insulation
  • Loft insulation
  • Room in roof insulation
  • Solar panels
  • Heating upgrades for homes where the current main heating type is oil, LPG or electric (i.e. anything other than mains gas)

Most likely to be eligible for a government grant are properties with uninsulated walls and inefficient heating systems. Comparatively, a greater reduction in carbon dioxide emissions can be achieved in these types of houses.

To qualify, you must agree to a free boiler upgrade to an air source heat pump. In order to meet the scheme’s requirement that your energy rating increase by two bands, you must install the heat pump along with measures like solid wall or room-in-the-roof insulation.

What is a heat pump?

A heat pump is an energy efficient heating system which can replace your boiler and provide hot water for your central heating and taps. Generally, there are two types of heat pumps, ground source and air source. Ground-source heat pumps absorb heat from the earth and use it for your system.

LG air source heat pump grant

Air source heat pumps (sometimes known as air to water heating) absorb a few degrees of heat from the outside air and convert it into a fluid called a refrigerant The fluid is then compressed and heated up to provide heat for your home. Air source heat pump grants are the type available through the government grant scheme.

How efficient are heat pumps?

Heat pumps are much more efficient than other boilers because they do not need a combustible fuel source. They do not burn a fossil fuel source like oil, gas, or LPG. They run on electricity, and they will convert every kilowatt of electric energy into several kilowatts of heat energy. Furthermore, they are a renewable heating system because the sun replaces the energy they use from the air.

Will an air source heat pump reduce my heating bills?

The amount of money you will save annually on heating your home depends on the type of property you live in and your existing heating type. The table below shows the expected annual savings after a heat pump installation in an average-sized detached 4-bedroom home in Scotland.

Remember that to qualify for a heat pump grant, we must also install an additional measure, such as solid wall insulation or cavity wall insulation. This is required to improve your EPC rating by a minimum of two bands. From G to E, or F to D, etc. Therefore, in reality, the money you will save each year will be significantly more than the table below. This only represents the savings with standard heat pump grants. Apply for an ECO grant.

Free heat pump scotland - fuel bill savings
Annual savings on energy bills with a heat pump grant in Scotland (April 2022, Energy Savings Trust).

Why must my home be insulated to get a free heat pump?

As part of the new heating grant scheme, you can replace your old boiler with a free heat pump. However, to get grant funding, we must also be able to insulate your walls. Heat pumps heat your water to a couple of degrees less than a traditional gas or oil boiler, so to get the benefit, your home must have adequate cavity or solid wall insulation. This enables you to prevent heat loss, reduce carbon, and save on energy bills.

Low Carbon Heating

One of the main benefits of a heat pump is that your carbon footprint will be significantly improved. The table below shows the annual carbon savings when upgrading your existing boiler to a heat pump through the scheme. Figures taken from the Energy Savings Trust.

Air source heat pump carbon savings Scotland
Annual carbon savings when upgrading your boiler to an air source heat pump

Can I get a free heat pump in Scotland?

From August 2022 free air source heat pumps in Scotland are available through the ECO4 grant scheme. To qualify, you must live in a rural Scottish postcode, and your home must be eligible for wall insulation or room in roof insulation. However, the scheme is only applicable to households on specific benefits or tax credits.

Who qualifies for a free heat pump grant?

Scottish homeowners and private tenants on specific income based benefits may be eligible for grant funding through the ECO scheme. If you are a landlord you can encourage your tenant to apply for funding. The qualifying benefits are listed below –

  • Working Tax Credits
  • Child Tax Credits
  • Income Support
  • Income Based ESA
  • Income Based JSA
  • Pension Savings Credit
  • Pension Guarantee Credit
  • Housing Benefit
  • Universal Credit

If you claim regular child benefit and are on a lower income you are entitled to apply providing your total household income is below the earnings threshold listed below.

Number of childrenSingle claimantMember of a couple
4 +£34,500£42,000
Child benefit income thresholds ECO4 for free heat pumps Scotland

Are there heating grants for disabled people?

ECO4 aims to be more targeted towards those in greatest need, meaning some households eligible under ECO3 may not qualify under ECO4. The introduction of the ECO4 scheme in Scotland saw many of the eligible benefits under ECO3 removed. The UK government’s rationale for this was that the funding provided through ECO should be more focused and directed at households that need the most help.

Thus, the decision was made to replace the following disability benefits as stand-alone criteria for heating and insulation grant qualification:

  • Disability Living Allowance
  • Personal Independence Payment
  • Attendance Allowance
  • Carer’s Allowance
  • Severe Disablement Allowance
  • Industrial Injuries Disablement Benefits
  • War Pensions Mobility Supplement
  • Constant Attendance Allowance
  • Armed Forces Independence Payment

However, if you claim an income-related benefit in addition to a disability benefit, you can still apply for ECO funding. Housing benefit has also been added to the list. Check eligibility

How do ECO Grants differ from the Renewable Heat Incentive?

The renewable heat incentive is a scheme where property owners are compensated on a quarterly basis for replacing their old boiler with a renewable energy electric or heating measure like solar panels or an air source heat pump. The new measure had to be purchased and was not installed with grant funding. Unfortunately, the RHI is now closed to new applicants.

There are other schemes available to help with the cost of a heat pump if you are not eligible for an ECO grant. Warmer Homes Scotland provides access to loans. More information can be found at Warmer Homes Scotland. However, ECO4 provides 100% grants for heat pumps and insulation for households that are eligible. If you qualify for a free heat pump in Scotland, it is completely free of charge, and you don’t have to pay any money back.

Who covers the cost of heat pump grants?

The largest energy companies fund the grants for eligible households in Scotland. These grants cover the cost of installing a heat pump. Grants are free in Scotland, and you do not have to pay anything towards the cost of your heat pump.

Check ECO4 eligibility here