LA Flex Funding (No Benefits)
What is the Energy Company Obligation Scheme (ECO4)
WHAT IS ECO4 ?
The Energy Company Obligation (ECO4) is a government energy-efficiency scheme in Great Britain, designed to tackle fuel poverty and help reduce carbon emissions. ECO is an obligation on energy companies to deliver energy efficiency measures to domestic premises. ECO is not a grant scheme; it is up to the energy companies to determine which retrofit projects they choose to fund, the level of funding they provide, and the Retrofit Coordinator and installers that they choose to work with.
ECO4 measures were able to be delivered from the 1 April 2022. The ECO4 scheme will run until 31 March 2026.
ECO4 focusses on improving the least energy efficient homes and households in fuel poverty, as only properties in bands D-G can be treated. It also aims to deliver a more complete upgrade of those homes, shifting to a multi-measure whole-house retrofit approach. Furthermore, a minimum number of private tenure homes in energy efficiency rating band E, F and G must be upgraded throughout ECO4, ensuring the least efficient homes are treated.
There is a new Minimum Requirement (MR) to improve the energy efficiency rating of band D and E homes to at least a band C and band F and G homes to at least a band D. ECO4 aims to encourage the installation of various energy efficient measures such as insulation measures, first time central heating, renewable heating, and district heating connections. The Energy Company Obligation (ECO4) is a government energy efficiency scheme in Great Britain that aims to tackle fuel poverty and reduce carbon emissions. Under this scheme, energy companies are obligated to provide energy efficiency measures to domestic premises. However, it is up to them to decide which retrofit projects to fund, the level of funding they’ll provide, and the Retrofit Coordinator and installers they’ll work with.
The ECO4 scheme started on 1st April 2022 and will continue until 31st March 2026. It primarily focuses on improving the energy efficiency of the least energy-efficient homes and households in fuel poverty. The scheme only allows properties in bands D-G to be treated and aims to deliver a complete upgrade of those homes, shifting to a multi-measure whole-house retrofit approach. Additionally, the scheme requires a minimum number of private tenure homes in energy efficiency rating band E, F and G to be upgraded throughout ECO4, ensuring that the least efficient homes are treated.
The ECO4 scheme introduces a new Minimum Requirement (MR) that mandates the energy efficiency rating of band D and E homes to be improved to at least a band C and band F and G homes to at least a band D. The scheme aims to encourage the installation of various energy-efficient measures such as insulation measures, first-time central heating, renewable heating, and district heating connections.
CAN I BENEFIT FROM ECO 4?
It’s important to keep in mind that in order to benefit from ECO, you must either own your own home or have the permission of your landlord, even if your property is owned by a social housing provider or management company. Additionally, it’s worth noting that ECO4 is not a grant scheme, so different companies or installers may provide different levels or types of support when it comes to the installation of energy efficiency or heating measures. With that in mind, it’s always a good idea to shop around and find the best deal that’s suitable for you.
WHAT ARE THE ELIGIBILITY CRITERIA FOR ECO4?
ECO eligibility is determined based on householder criteria and house makeup. There are three different pathways for homeowners to qualify, and social housing tenants may also be eligible if their home has poor energy efficiency. The first pathway is for members of the Help to Heat Group (HTHG), which includes individuals who receive certain benefits and meet income requirements. Another way to qualify for HTHG membership is by receiving the Core Group 1 and Core Group 2 rebate in England and Wales, or the Core Group in Scotland, under the Warm Home Discount scheme. Households with disabilities may be eligible if they receive a means-tested benefit or meet one of the four routes outlined in the ECO4 Flex eligibility mechanism. For social housing tenants, ECO4 measures can be delivered to homes with an EPC energy efficiency rating of D, E, F, or G that are let below market rate. Delivery of measures to SAP band E-G-rated social housing premises is limited to insulation measures, first-time central heating, renewable heating (except where it replaces a renewable heating measure of the same kind at the premises), district heating connection, and innovation measures. Delivery to EPC band D-rated social housing is limited to innovation measures and insulation measures installed to meet the Minimum Insulation Requirements only. Band D social housing is also required to meet the Minimum Requirements, but they are not eligible to receive other measures. Under ECO4 Flex, local authorities, governments, and suppliers can identify households that meet certain eligibility requirements. Local authorities use the four routes listed under ECO4 Flex to identify eligible households, and they will contact you if you meet the criteria and can refer you for the scheme. Remember, meeting the eligibility criteria for an ECO4 measure doesn’t guarantee that it will be installed. Energy companies have the final say on which retrofit projects they choose to fund, the level of funding they provide, and the Retrofit Coordinator and installers they work with. If you have any questions about your eligibility or the retrofit process for ECO4 measures, it’s recommended that you speak to your energy supplier. Additionally, you can contact your local authority to find out if you meet the eligible criteria.