The ECO4 Extension has now been formally confirmed by the government following a public consultation held between August and September 2025. The response confirms that the Energy Company Obligation 4 (ECO4) scheme will be extended by nine months, with a new end date of 31 December 2026.
This decision is intended to support remediation activity and ensure an orderly and controlled closure of the scheme.
Alongside the ECO4 Extension, the government has confirmed that there will be no extension to the Great British Insulation Scheme, no increase in delivery targets, and no carry-over arrangements beyond the revised end date.
Who Contributed To This Decision?
The government received 215 responses to the consultation from a broad range of stakeholders across the energy efficiency and retrofit sector, including:
- Energy suppliers
- Installers
- Trade bodies
- Local authorities
- Consumer stakeholders
This wide engagement has informed the government’s final position on the planned closure of the scheme.
What is ECO4
The Energy Company Obligation (ECO4) scheme obligates large energy suppliers to deliver a target of annual bill savings by installing energy efficiency and heating measures to homes in Great Britain.
These measures are designed to help households:
- Keep their homes warmer
- Reduce energy bills
- Lower carbon emissions
Looking ahead, this need will be met through the Warm Homes Plan instead. This plan is a publicly funded programme that promises £15 billion of investment. The Warm Homes Plan aims to help millions of families benefit from solar panels, batteries, heat pumps and insulation that can significantly cut energy bills.
Read more about the Warm Homes Plan.
What Does This Extension Mean For The Industry?
Prior to the ECO4 Extension being confirmed, uncertainty around the future of ECO created challenges for the sector. With no definitive successor announced, some individuals delayed training or avoided entering the industry altogether, concerned about whether work would remain available.
The confirmation that ECO4 will now run until December 2026 provides welcome clarity and stability. For the retrofit industry, the ECO4 Extension means:
- Greater certainty to complete ECO4 delivery effectively and at pace
- Continued emphasis on quality, compliance and consumer protection
- A clearer transition toward grant-funded delivery through the Warm Homes Plan
- Time for the industry to prepare skills, capacity and delivery models for the next phase of retrofit
Overall, the ECO4 Extension represents a positive step. It supports stability for the sector while helping to lay the foundations for a more strategic, long-term approach to delivering warm homes and scaling up retrofit across Great Britain as we transition to new schemes.
Read the government response here 🔗
If you’re looking to get into retrofit, now is the perfect time to get involved. Many of Energy Trust’s Retrofit Courses are currently available through the Warm Homes Skills Programme funding. This means you can gain professional retrofit qualifications for just 40% of the usual cost.
