The Energy Company Obligation (ECO) was initiated in 2013, and there have been three previous ECO schemes, with the ECO4 scheme taking over in April 2022.
ECO4 Scheme
ECO4 is a government of the UK supported initiative that has been put in place to help reduce carbon emissions and provide more energy efficiency measures to UK homes. Through the ECO4 Scheme, homes could receive discounted (or free) home insulation, an upgraded boiler or green heating system.
However, only the most energy-inefficient homes can benefit from ECO4, meaning that your property must have an Energy Performance Certificate (EPC) of D or lower. The government introduced ECO4 in April 2022 and will run until 31 March 2026. The scheme is part of the government’s commitment to making all houses more energy efficient by 2035.
It’s a continuation of ECO3, but with some necessary changes that are developed to make the scheme more customer-friendly, such as a main focus on low income homeowners or private tenants and areas of high fuel poverty.
What are the main goals of ECO4?
One of the main aims of the ECO4 scheme is to help the government to lower carbon emissions in homes across the UK in order to achieve its legally binding goal of reaching net-zero emissions by 2050. To do this, it is responsible for providing grants to eligible households on the main energy companies and energy suppliers that serve our homes.
These include British Gas, E (Gas and Electricity). E.ON Energy, Ecotricity, EDF Energy, ESB Energy, Scottish Power, Shell Energy, Octopus Energy, OVO Energy and Utilita. Government figures have shown that over 3.1 million energy-efficient measures have been installed in more than 2.4 million homes through the ECO scheme since its inception.
Both homeowners and private tenants can get involved in the ECO4 scheme if they meet the eligibility criteria. This will mean your building’s energy efficiency will be improved with new insulation, and it will likely see an increase in value, too, as a result. Your tenant will also benefit thanks to the improved energy efficiency of the home they’re staying in, reducing their energy bills and making their home more comfortable as a result.
What energy efficiency measures can ECO4 cover?
- Insulation – loft, cavity wall, etc
- New heating systems – such as an air source heat pump instead of electric storage heaters
- Replacing inefficient boilers
Energy Performance Certificate (EPC) requirements
Through ECO4 there are extra requirements for the minimum increases in energy efficiency ratings after the new measures have been installed. For example, in homes that have an existing EPC band of F or G, the grants will need to improve the rating to at least band D. Whereas if a home has an existing band of D or E, the funding grants are required to improve the rating to a minimum of band C.
The reasoning behind these changes is to increase the number of grants and energy-efficient savings that households can make with the new improvements in place. Also, the government stated that a minimum number of homes in bands D, E, F, and G will be upgraded to ensure the most inefficient properties are not forgotten or missed out.
These energy inefficient properties will be targeted under ECO4 to ensure that their energy inefficiency is improved through various methods, including cavity wall insulation, loft insulation measures, boiler replacement scheme, and more!
You will need to receive at least one of the mentioned benefits and satisfy the relevant income requirements, where applicable:
- Income-based Job seeker’s Allowance (JSA)
- Income-related Employment & Support Allowance (ESA)
- Income Support Allowance (ISA)
- Working Tax Credit (WTC)
- Child tax credit (CTC)
- Universal Credit (UC)
- Pension savings Credit
- Pension Guarantee Credit
- Child benefit
- Housing benefit
What’s Covered in the ECO4 Scheme?
The ECO4 UK scheme covers a range of energy saving solutions that can be applied to existing homes, such as:
Insulation
Installing insulation is the most common benefit from the ECO4, helping homes save up to £1,800 a year—”so-eco.”
Cavity wall, solid wall, room in a roof and loft insulation are some of the insulation measures available through ECO4, but this depends on household circumstances.
The ECO4 UK Scheme provides a fabric-first approach, meaning that its primary focus is to make homes more energy efficient and warm, before considering any other measures, like heating upgrades.
Green heating systems
The installation of green heating systems, which refers to the ECO4, such as air-source heat pumps and biomass boilers is also covered by the ECO4 UK scheme. These state-of-the-art heating systems can be used to replace outdated, inefficient boilers and can provide homeowners or private tenants with up to a 25% reduction in their energy bills.
Homeowners can still benefit from solar panel installation through the ECO4 UK Scheme, although this is only if a biomass boiler or heat pump has been ruled out.
How Do I Apply for the ECO4 grant?
Applying for the ECO 4 Scheme is a straightforward process:
Firstly, check your eligibility: You can check your eligibility here to confirm whether you qualify for the ECO 4 boiler scheme.
Find an ECO4 installer: Locate qualified installers in your area who are certified to work under your chosen scheme. Additionally, you can choose us to complete all the paperwork on your behalf till the installation of the boiler-free Grant.
Home Energy Assessment: Our energy surveyor will visit your home to evaluate your boiler and energy efficiency. This assessment is crucial for determining your eligibility and grant amount.
Submit an application: We will guide you through the application process, submitting the necessary paperwork to the energy supplier.
Get approved: Upon approval, we will schedule a date for the new boiler installation, and you’ll begin enjoying the benefits of your new, eco-friendly heating solution.
Conclusion
The ECO4 Scheme develops a green future for sustainable development. Its focus on environmental conservation, community engagement, and economic growth offers a global approach to overcoming ecological challenges. Incentivizing eco-friendly practices and boosting collaboration pave the way for a greener, more flexible future. We must prioritize innovation, inclusivity, and accountability as we continue to implement and refine the ECO4 UK Scheme. Together, we can utilise the power of this initiative to create a better world for current and future generations, where prosperity thrives hand in hand with environmental responsibility.
