The Energy Company Obligation (ECO4) stands as a fundamental government initiative in Great Britain, strategically crafted to combat fuel poverty and mitigate carbon emissions. This scheme mandates energy companies to implement energy efficiency measures within residential properties. Unlike a grant program, ECO entrusts energy companies with the discretion to select and fund retrofit projects, determine funding levels, and choose Retrofit Coordinators and installers.

Commencing its operations on April 1, 2022, ECO4 is scheduled to persist until March 31, 2026. The primary focus of ECO4 is the enhancement of the energy efficiency of the least energy-efficient homes and those facing fuel poverty, with treatments limited to properties falling within bands D-G.

In a significant shift, ECO4 adopts a comprehensive approach, aiming for complete upgrades in the least efficient homes through a multi-measure, whole-house retrofit strategy. A noteworthy aspect of ECO4 is the obligation to upgrade a minimum number of privately-owned homes in energy efficiency bands E, F, and G, ensuring that the least efficient residences undergo necessary improvements.

Introducing a new Minimum Requirement (MR), ECO4 mandates elevating the energy efficiency rating of homes in bands D and E to at least a band C, and homes in bands F and G to at least a band D. The scheme is strategically designed to incentivize the installation of diverse energy-efficient measures, including insulation, first-time central heating, renewable heating, and connections to district heating systems.

ECO4 can fund various measures to improve the energy efficiency of domestic premises, including insulation, heating upgrades, glazing, draught-proofing, and renewable energy installations. The specific measures that can be funded depend on the eligibility criteria, the funding available, and the energy companies’ preferences.

a) Insulation measures
b) First-time central heating
c) Renewable heating e.g Solar system, Heat pump
d) Boiler Replacement with new heating controls
e) Innovation measures (IMs)

ECO4 funding is primarily targeted at low-income and vulnerable households who may struggle to afford energy bills or live in cold and damp homes. Eligibility criteria may vary depending on the energy company but typically include factors such as income, property type, age, health conditions, and location. Energy companies may also choose to fund measures for non-fuel-poor households if they meet certain criteria.

You will be eligible for ECO4 if you are living at private domestic premises and are a member of the Help to Heat Group (HTHG). Membership of the HTHG entails receipt of at least one of the following benefits and satisfaction of the relevant income requirements:

Eligibility Criteria:

Child Tax Credits (CTC)
Child Benefits – depends on Total Household Income
Jobseekers Allowance (JSA)
Employment & Support Allowance (ESA)
Income Support (IS)
Pension Credit Guarantee Credit
Universal Credit (UC)
Warm Home Discount Scheme Rebate
Working Tax Credit (WTC)
Housing Benefit
Pension Credit Saving Credit

If you are a homeowner or private tenant in the UK and currently receiving income-related benefits, you qualify for ECO4 funding. This means that if you meet the criteria of being a homeowner or private tenant and are also in receipt of income-related benefits, you are eligible to avail yourself of the financial support provided under the ECO4 scheme.

Eligibility Criteria:

• Child Tax Credits (CTC)
• Child Benefits – depends on Total Household Income
• Jobseekers Allowance (JSA)
• Employment & Support Allowance (ESA)
• Income Support (IS)
• Pension Credit Guarantee Credit
• Universal Credit (UC)
• Warm Home Discount Scheme Rebate
• Working Tax Credit (WTC)
• Housing Benefit
• Pension Credit Saving Credit

It is possible to install window glazing under ECO4, with options for both “single to double” and “improved double glazing”. However, it’s important to note that energy companies have the discretion to select the specific retrofit projects and measure packages they will fund under the ECO4 scheme. Therefore, eligibility for window glazing may vary depending on the energy company’s chosen measures.

Energy efficiency is paramount in today’s world, not only for environmental reasons but also for cost-saving benefits for homeowners and businesses. While the initial costs of energy-saving upgrades might seem daunting, the UK government has rolled out several schemes to alleviate these financial burdens, ensuring that a greener future is within reach for everyone.

1. ECO4: Energy Company Obligation (ECO) Scheme

The ECO4 scheme stands as a cornerstone of the UK government’s vision for enhanced home energy efficiency and a reduction in carbon footprints. This initiative mandates energy companies to allocate funds specifically for energy efficiency projects targeting qualifying households.

ECO4 primarily focuses on:

• Low-income households.
• Properties pose unique challenges, such as older buildings with solid walls.

Benefits:

• Free or substantially subsidized insulation installations.
• Upgrades to efficient heating systems.
• Other energy-saving measures are tailored to individual property needs.

2. Great Britain Insulation Scheme (GBIS)

The GBIS initiative underscores the importance of proper insulation in achieving optimal energy efficiency. By focusing on the thermal integrity of homes, GBIS aims to curb unnecessary heat loss, subsequently leading to decreased energy consumption.

GBIS primarily supports:

• Installation of cavity wall insulation.
• Loft insulation enhancements.

Financial Incentives:
Benefits:

• Marked reductions in heating bills.
• A more comfortable living environment, with consistent temperatures maintained throughout the year.

The UK government’s incentives can cover up to 100% of the costs, making energy-efficient measures effectively free for homeowners and businesses

If you still have questions, please contact us at info@s6energy.co.uk