The UK government has set a target to reduce carbon emissions to net-zero by 2050. To achieve this goal, it has introduced the Energy Company Obligation (ECO) Scheme in 2013.

ECO4 is the latest government-backed initiative that provides energy efficiency measures to homes across the UK. Below you’ll find insights on what the ECO4 scheme is, what it covers, who is eligible, and how to apply for it.

What is the Energy Company Obligation Scheme?

The Energy Company Obligation (ECO) Scheme is a government scheme that requires energy suppliers to deliver cost-effective carbon savings through energy efficiency measures in domestic properties, such as insulation and boiler replacements, free of charge for eligible homeowners. The scheme was introduced in 2013 to help reduce emissions and tackle fuel poverty in line with the Climate Change Act 2008. Since its launch, over 3.6 million measures have been installed in over 2.4 million homes across the UK, with the most common benefit being cavity wall insulation. The scheme has saved nearly £20bn from lifetime bill savings, making it the UK’s largest energy efficiency program.

What is the ECO4 Scheme?

The ECO4 scheme is a government-supported initiative that aims to reduce household carbon emissions and provide energy efficiency measures to homes across the UK. ECO4 was introduced by the government in August 2022 and will run until 21 March 2026.
The scheme is a continuation of ECO3, but with some important changes designed to make the scheme more customer-friendly,
such as a greater focus on low-income households and areas of
high fuel poverty.

What does the ECO4 Scheme cover?

The ECO4 scheme covers a range of energy efficiency measures that can be applied to existing homes, such as insulation and heating upgrades. The scheme takes a fabric-first approach, meaning that it aims to make properties more energy efficient before considering any other measures, such as heating upgrades. The scheme covers the installation of green heating systems, such as air-source heat pumps and biomass boilers, that can provide households with up to a 25% reduction in their energy bills. The scheme also provides funding for repairing and upgrading existing boilers to make them more efficient. Households can still benefit from solar panel installation through the ECO4 Scheme; however, this is only if a heat pump or biomass boiler has been ruled out.

What makes ECO4 different from ECO3?

Although there are many similarities between the ECO3 and ECO4 phases of the Energy Company Obligation scheme, the final stage aims to reach more vulnerable households and areas with high fuel poverty. ECO4 targets vulnerable households receiving benefits or those in the low-income bracket, ensuring that all homes have access to affordable energy. However, one major difference between the ECO4 and ECO3 Schemes is that some benefits that were previously eligible through ECO3 cannot apply through the ECO4 Scheme. The ECO4 report states that this is “to help better target households which are more likely to be on low incomes.”
How to apply for the ECO4 Scheme?

To apply for the ECO4 Scheme, homeowners must first determine if they are eligible for the programme. If so, they can apply through their energy supplier or local authority, who will then carry out an assessment of the property to determine which measures
are most suitable. Once the assessment is completed, the energy supplier or local authority will arrange for the installation of the measures by an approved contractor, free of charge.

It’s important to note that not all energy suppliers are obligated to offer the ECO4 Scheme, so it’s essential to check with the supplier to confirm whether they provide it.

What is the ECO+ Scheme?

In addition to the ECO4 Scheme, the government has introduced the ECO+ Scheme, which provides additional support for low-income households in the form of an affordable warmth obligation. This means that eligible households will receive additional support to make their homes more energy-efficient, which will help to lower their energy bills and keep them warm.The ECO+ Scheme is available for households that meet certain criteria, such as those receiving certain benefits or with low incomes.The ECO4 Scheme is an excellent initiative by the UK government to reduce household carbon emissions and help households become more energy-efficient.

The scheme’s focus on low-income households and areas with high fuel poverty ensures that everyone has access to affordable energy, which is crucial for tackling climate change.

Remember, the ECO4 Scheme is free of charge, so there’s nothing to lose by exploring the possibility of becoming more energy-efficient.

For more information please contact: TOB Heating, Gas and Insulation

Call: 01207 297794
WhatsApp: 07377 693 798

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