In 2013, a scheme was introduced to the public called the Energy Company Obligation (ECO Scheme). The Energy Company Obligation put the responsibility of improving energy efficiency across the least energy-efficient homes in the UK onto successful energy companies. Energy suppliers would then be responsible for the funding behind the grants within the ECO4 Scheme.
The overall objective of the eco scheme is to reduce the release of harmful gases into the environment and help low-income households suffering from fuel poverty to lower their energy bills. One of the main sources of carbon emissions came from these inefficient homes in the UK. By pushing energy efficiency measures through various installations via government grants, UK households will experience warmer homes, reduced carbon footprints, but most importantly, will save on their energy bills.
10 years since its inception, the ECO Scheme is still going strong, now in its fourth rendition: ECO4.
What does ECO4 consist of?
The ECO4 Scheme is comprised of a set of grants available to homes that don’t have the income to install energy efficiency measures independently.
These grants consist of three overall categories:
Solar Panels
Solar Panels have come a long way since their inception, being more flexible, cheaper to install and having higher energy efficiency than usual. Solar Panels are fast becoming some of the most popular energy efficiency measures, and some households have been able to make such sophisticated use of these systems that they eventually
Heating Systems
There are a variety of different heating systems available through the ECO4 Scheme. These range from the different variety of heat pumps available, to also converting your gas heating systems to electric storage heaters. See the following for what heating systems you could get under the energy company obligation (eco scheme):
- Electric Storage Heater
- Air Source Heat Pump
- Ground Source Heat Pump
- Biomass boilers
Insulation
According to recent figures, more than 3.1 million energy efficiency measures have been fitted in over 2.3 million of the UK’s least energy-efficient homes. There are a large variety of different measures available, including:
- Cavity Wall Insulation Measures
- Solid Wall Insulation Measures
- Loft Insulation Measures
- Floor Insulation
What are the eligibility criteria for the Energy Company Obligation (ECO4 scheme)?
Eligibility criteria are made up of two parts: income ability and your energy performance certificate (EPC) rating.
Proof of Income Ability – Income-Related Benefits
Benefits that are accepted are usually income-related employment, as this is taken as being counted amongst low-income households. The benefits accepted are the following:
- Pension Credit
- Universal Credit
- Income-based Jobseekers allowance
- Income-related Employment & Support Allowance
- Income Support
- Housing Benefit
- Tax Credits (Child or Working Tax Credit)
Income limit if you only claim Child Benefit
| No of children | 1 | 2 | 3 | 4 |
| 1 adult household | £19,900 | £24,800 | £29,600 | £34,500 |
| 2 adult household | £27,500 | £32,300 | £37,200 | £42,000 |
Energy Performance Criteria (EPC) overhaul
An EPC is a grading of energy efficiency within the home. It gauges how much energy your house generates, and how much it retains. For example, a house that has paper-thin walls with no insulation is going to get a low grade, because heat can easily escape through weak, unprepared walls and floors.
ECO4 now requires a definitive rise in the results of EPC before and after installation. For example, if your home had an EPC band of F or G, then the grant that’s given to you will have to be for an installation that’s going to increase the band to D.
The goal of this change is to be efficient with where the grant money goes and to make sure that each upgrade is a significant one rather than a minor one.
How to apply?
To apply to the ECO4 scheme, first, you will want to check your eligibility against the list below. If you are unsure just fill out our quick application form and one of the UK’s best-certified contracts will get in touch to discuss the scheme.
Can you get free solar panels under the ECO4 Scheme?
Yes, if you are eligible you can get free solar panels via the ECO4 scheme. You will either be asked to make a small contribution to your new solar system or it will be installed completely free of charge, depending on your qualifying factors. Don’t hesitate to get in touch to see if you qualify.
What changes between ECO3 and ECO4?
The fourth and final stage of ECO is slated to start late 2022 and run until 2026. The following are the changes you should be aware of:
Alterations to ECO
Changing qualifying benefits
Disability benefits has been removed from the scheme and, In their place, Housing Benefits and Pension Credit Savings Credit has been added. This is because there’s a new focus on ECO now, the main focus is going to be for low-income families. Closing off access to the scheme ensures more of the targeted audience will be served. To be specific, take a look at the following:
Full list of eligible benefits for ECO4:
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance (ESA)
- Income Support (IS)
- Pension Credit Guarantee Credit
- Working Tax Credit (WTC)
- Child Tax Credits (CTC)
- Universal Credit (UC)
- Housing Benefit (new qualifying benefit for ECO4)
- Pension Credit Savings Credit (new qualifying benefit for ECO4)
Benefits that will no longer be eligible under ECO4
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Attendance Allowance
- Carer’s Allowance
- Severe Disablement Allowance
- Industrial Injuries Disablement Benefit
- War Pensions Mobility Supplement
- Constant Attendance Allowance
- Armed Forces Independence Payment
Increase Measures through LA Flex
Energy Companies used to be capped at offering 25% of their obligation to be used through LA Flex. This allows the council the authority to place their own eligibility criteria, meaning that they can issue statements of intent for flexible energy. As a result, residents that don’t meet eligible criteria can petition with the energy companies or LA for exception.
The obligation cap has been raised to 50%, meaning more people who fall outside of eligibility criteria can be put up for consideration.
Energy Performance Criteria (EPC) overhaul
An EPC is a grading of energy efficiency within the home. It guages how much energy your house generates, and how much it retains. For example, a house that has paper-thin walls with no insulation is going to get a low grade, because heat can easily escape through weak, unprepared walls and floors.
ECO4 now requires a definitive rise in the results of EPC before and after installation. For example, if your home had an EPC band of F or G, then the grant that’s given to you will have to be for an installation that’s going to increase the band to D.
The goal of this change is to be efficient with where the grant money goes, to make sure that each upgrade is a significant one rather than minor.
Boiler Grant Removal
ECO3 saw a little under 135,000 boilers being fitted. However, this time around with ECO4, there’s a major cap on that number. ECO4 not only adds to the rules of eligibility for getting boilers, but it limits the total number of replacements available to a staggeringly low 5,000. This is because the government wants to focus on different areas.
PAS 2035 remains a requirement
ECO4, like ECO3, will require compliance with PAS 2035, mandating that any installers will require that certificate if they are to do work on your home. This includes any projects funded by ECO, which will need to be managed by a TrustMark Approved Retrofit Coordinator.
In support of the PAS 2035 requirement, any energy-efficient improvement measures that are installed within one property will be packaged together and scored as a combined package. However, this works differently from ECO3 where the improvements were scored independently.
Who needs to be aware of these changes?
The people who need to be aware of these changes are those who are unaware and or were previously unable to benefit from ECO funding. ECO4 is designed to give out grants to improve homes that are in financial need and suffering from massive energy inefficiency.
If you are in this group of people, there is a good likelihood that you meet eligibility. If you don’t, then you should get in contact with your LAs with your case to see if they will make an exception, as their capacity to do so was increased with the previously mentioned increased measures.
Arguably the biggest group of people who need to be aware of these changes are those who are interested in getting a new boiler under ECO. Considering their scarcity now, it is of paramount importance to pursue these limited grants as soon as possible.
