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ECO4 Innovation 45% Uplift
The ECO4 Scheme has now ended. Before 31st March 2026, ECO4 Heat Pump Installers could access a 45% innovation measure uplift on installations of Grant Aerona air source heat pumps with an Aerona Smart Heat Pump System Controller.
Energy Company Obligation (ECO4) Funding
ECO4 was a Government scheme which was available in Great Britain, providing funding which was distributed through energy companies to eligible households to help them install energy efficiency measures into their homes, such as low carbon heat pumps. The ECO4 Scheme closed on 31st March 2026.
ECO4 Scheme Closure
In Autumn 2025, the UK Government confirmed that ECO4 would end on 31st March 2026 to reduce energy bills for thousands of homeowners. ECO4 funding was generated through levies on energy bills so the direct impact of the ECO4 scheme closure is estimated at a saving of approximately £150 per year for households. After 31st March 2026, no new applications for Innovation Measures will be accepted however existing uplifts (applied and approved before 31st March 2026) will be honoured.
In January 2026, the Department for Energy Security and Net Zero confirmed that a nine month extension of ECO4 will be implemented to allow suppliers to meet existing targets. This extension will end on 31st December 2026 with no further extensions planned.
Is the 45% Innovation Uplift with Grant heat pumps still available?
No. The closure of the ECO4 Scheme means that the 45% Substantial Innovation Measure which was previously available on both the Aerona³ and Aerona 290 heat pump models when installed alongside the Aerona Smart Controller is no longer available. Please note, if you are an ECO4 heat pump installer who applied for this Innovation Measure with your energy provider before 31st March 2026, the uplift should still be honoured provided all ECO4 eligibility requirements have been fulfilled. Please contact your energy provider for additional assistance.
What is replacing ECO4 funding?
While ECO4 Scheme funding is no longer available to new applicants and there is no direct replacement for ECO4, other schemes are available which support low-income households and those in fuel poverty with heating system upgrades and energy efficiency improvements for their homes. Through its Warm Homes Plan, Government funded schemes supporting the installation of air source heat pumps include:
- Warm Homes: Local Grant – funding is available to local authorities in England and Wales to deliver energy efficiency upgrades into low income households, with air source heat pump installations eligible for funding through this Scheme.
- Warm Homes: Social Housing Fund Scheme – over £1bn of funding is available to upgrade social housing properties in England by improving their insulation levels and installing low carbon heating systems, such as heat pumps.
In addition, grants and funding for air source heat pump installations are also available to eligible homeowners in England and Wales through the Boiler Upgrade Scheme and in Scotland through the Home Energy Scotland Funding Scheme.
If you are an installer and you are interested in learning more about installing Grant air source heat pumps through alternative Government funding schemes, please contact your local Grant UK Sales Representative.
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