What is ECO4?
The Energy Company Obligation (ECO) is a government-backed initiative launched in 2013 aimed at improving energy efficiency in homes across the UK. The scheme provides funding for the installation of energy-efficiency measures in millions of homes across the country. These improvements include new heating systems, insulation, and upgraded glazing. ECO adopts both a fabric-first approach and a whole-house retrofit strategy to deliver a more complete upgrade of each home. The latest iteration of this scheme, ECO4, commenced in 2022 and is set to run until March 2026.
The Impact of ECO4
ECO4 is poised to make a significant impact on several fronts:
Reducing fossil fuel reliance
By funding energy-efficient upgrades, ECO4 helps households lower their dependency on fossil fuels, which in turn reduces the nation’s overall carbon footprint.
Combatting fuel poverty
Low-income households can receive funding for a number of energy upgrades, which will help reduce their energy bills. For instance, the scheme makes it possible for households to install insulation either for free or at a heavily discounted rate. Once installed, this insulation will help the home retain its heat, lessening the burden on the heating system and saving the household money on their heating bill. Over time, these savings can substantially alleviate financial pressures on vulnerable families.
Achieving carbon reduction goals
ECO4 supports the UK government’s ambitious target of reaching Net Zero carbon emissions by 2050. The millions of upgrades being installed across the country could lead to significant changes. New Minimum Requirements (MR) require band D and E homes to be elevated to at least a band C, and band F and G homes to at least a band D. Given that domestic properties are a major contributor to carbon emissions, these upgrades are crucial in driving national progress toward energy targets. (Source)
Who Can Benefit from ECO4?
ECO4 is designed to assist low-income, fuel-poor, and vulnerable households, particularly those living in homes with energy efficiency ratings of band D or below. While social housing tenants are a primary focus, private homeowners and tenants can also benefit if they receive any of the following benefits:
- Income Support
- Working Tax Credit
- Universal Credit
- Pension Guarantee Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Child Benefit
- Housing Benefit
- Child Tax Credit
- Pension Savings Credit
Available Upgrades Under ECO4
ECO4 offers funding for a range of energy-efficient upgrades, including green heating systems, boiler repairs, insulation, and glazing improvements. However, it is important to note that the ECO4 scheme is not a grant scheme. It is up to the energy companies to decide which retrofit projects they will fund and the extent of the funding they provide. While these upgrades are all available, they are not guaranteed in every case.
Participating Energy Companies
The energy companies are responsible for delivering the upgrades under the ECO4 scheme. A number of companies are obligated to carry out these retrofit projects, including:
- British Gas
- Bulb Energy
- E (Gas & Electricity)
- E.ON Energy
- Ecotricity
- EDF Energy
- ESB Energy
- Foxglove Energy
- Scottish Power
- Shell Energy
- Octopus Energy
- Ovo Energy
- Utility Warehouse
- Utilita
Individuals interested in benefitting from the funding can contact these companies directly or reach out to their local council to find out if they are participating in the scheme.
ECO4 and Retrofit
ECO4 plays a pivotal role in the retrofit industry. Retrofit Coordinators are essential to the successful execution of each ECO project, as they oversee the entire process from assessment to completion.
Given the UK’s significant stock of traditional homes, retrofitting has become a critical solution for improving energy efficiency while preserving the character and history of these buildings. Retrofit Assessors and Coordinators are fundamental to this process.
For those interested in entering the retrofit industry, now is the perfect time to get involved. Our courses are designed to give you the best start possible, whether you’re entirely new to the retrofit industry or you’re expanding your existing skill set. Explore our website to find the course that best suits your needs and take the first step towards making a meaningful impact in the world of energy efficiency.
