The Energy Company Obligation

UK Government's ECO Scheme

The Energy Company Obligation: ECO4 Scheme – Helping Low-Income Households Stay Warm and Comfortable

The ongoing energy crisis in the UK is a significant concern for many households, particularly low-income families who struggle to manage rising fuel costs. Fortunately, the government has introduced the Energy Company Obligation (ECO) scheme, which places legal obligations on energy suppliers to deliver energy efficiency measures to domestic premises.

The new obligation period, ECO4, was established in July 2022 and runs until March 2026. This scheme focuses on reducing home heating costs for low-income, fuel-poor, and vulnerable people, and it aims to encourage the installation of insulation, renewables, and district heating connections, as well as upgrading inefficient heating systems.

One of the most significant changes in ECO4 compared to previous schemes is the focus on improving the least energy-efficient homes. Only properties in bands D-G can be treated, and a complete upgrade of those homes is required, shifting to a multi-measure whole-house retrofit approach. Moreover, a minimum number of private tenure homes in energy efficiency rating bands E, F, and G must be upgraded throughout ECO4, ensuring the least efficient homes are treated.

To qualify for the ECO4 funding, you must register your interest and meet the government's Eligibility criteria regarding the benefits you receive. You must be a low-income household earning less than £30,000 per year, with savings of less than £16,000. You'll likely meet the criteria if you're a homeowner or a private tenant and receive Qualifying benefits such as Income-based Jobseeker's Allowance, Income Support, Pension Credit Guarantee, or Universal Credit.

At Eco-Home Network, we can help you start your ECO4 grant journey and see it through to completion. We manage your journey from start to finish, working to provide the best options of funding available to create a more comfortable, energy-efficient home for you and your family.

The Home Heating Cost Reduction Obligation (HHCRO) is the only obligation under the ECO4 scheme. It aims to reduce home heating costs for low-income, fuel-poor, and vulnerable people and is designed as a fabric-first multiple-measure whole-house retrofit policy.

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The HHCRO incorporates the replacement of broken heating systems and the upgrade of inefficient heating systems. Compared to previous ECO schemes, ECO4 focuses on a fabric-first, whole-house retrofit approach to encourage the installation of insulation, renewables, and district heating connections and upgrading inefficient heating systems.

The scheme is helping low-income households and vulnerable individuals living in fuel-poor homes (bands F and G) to become more energy-efficient. This can be done by installing roof insulation, repairing and improving central heating systems, and installing Cavity wall insulation, all free of charge.

With cheaper energy-efficient homes leading to a happier quality of life, it's worth checking your Eligibility for the ECO4 scheme. Applying is quick and straightforward, and you're not forced to commit.

The best thing about the scheme is that you must register your interest, and our dedicated team here at Eco-Home will take care of everything else. We will check your Eligibility, enrol you in the scheme, and ensure that qualified tradespeople and installers carry out all your energy-efficient home improvements.

The ECO4 scheme is an excellent opportunity, and the scheme aims to make the UK more energy-efficient, combat climate change, and bring the scheme to a broader range of people than previous schemes. With Eco-Home Network by your side, you can rest assured that your journey is from start to finish.

ECO scheme FAQs

Who is eligible for Energy Company Obligation?

The Energy Company Obligation (ECO) scheme is available to individuals with certain Eligibility criteria. Specifically, the scheme is open to those on Qualifying benefits or Flex. Additionally, the scheme only applies to properties with an EPC rating of G, F or E, and where the EPC score needs to be improved by at least 2 bands. It is important to note that Eligibility requirements may vary depending on the specific ECO scheme being considered.

Who is eligible for ECO4?

ECO4 is an energy efficiency scheme available exclusively to individuals on Qualifying benefits or Flex. Additionally, the scheme only applies to properties with an EPC rating of G, F, or E, and the EPC score must be improved by at least two bands.

What are the benefits of Energy Company Obligation?

The Energy Company Obligation provides several benefits, including access to 100% funding for the installation of insulation in qualifying properties. This program is available to individuals on Qualifying benefits or Flex, and is specifically targeted towards properties with an EPC rating of G, F, or E. Additionally, in order to be eligible for this program, the EPC score of the property must be improved by at least 2 bands. Overall, this program can help improve energy efficiency and reduce energy costs for qualifying individuals and households.

Is everyone entitled to energy rebate?

Not everyone is entitled to an energy rebate. Eligibility criteria vary depending on the specific program. For instance, if you live in a property with a council tax band A-D, you may be eligible for an energy rebate if you meet certain requirements. However, for programs that offer rebates to people on Qualifying benefits or Flex, only properties with an EPC rating of G, F or E are eligible, and the EPC score needs to be improved by two bands. It is important to check the eligibility criteria for each program to determine if you qualify for an energy rebate.

How do I get an EPC exemption?

To obtain an EPC exemption, specific criteria must be met. If the property is used for less than four months of the year, it may qualify for an exemption. Additionally, individuals on Qualifying benefits or Flex may be eligible for an exemption, but only for properties with an EPC rating of G, F, or E, and the EPC score must be improved by two bands. It is important to carefully review the eligibility requirements and follow the appropriate steps to obtain an EPC exemption.

Are energy companies obliged to refund credits?

Energy companies are indeed obliged to refund credits, albeit with certain conditions. Specifically, refunds only apply to individuals on qualifying benefits or Flex and to properties with an EPC rating of G, F, or E. Furthermore, the EPC score must be improved by at least two bands.

Who pays for the ECO scheme?

The ECO scheme is primarily funded by energy companies, who must contribute to its implementation. However, the scheme only applies to households on qualifying benefits or Flex and to properties with an EPC rating of G, F, or E, where the EPC score needs to be improved by two bands.

When did the energy company obligation start?

The Energy Company Obligation (ECO) was introduced on January 1st, 2013. It applies specifically to individuals on qualifying benefits or Flex, as well as properties with an EPC rating of G, F, or E that require a 2-band improvement in their EPC score.

Is the ECO4 scheme still available?

Yes, the ECO4 scheme is still available until 2026. However, it is only available to individuals on qualifying benefits or Flex and only for properties with an EPC rating of G, F, or E. Additionally, the EPC score needs to be improved by two bands.

How does the ECO4 grant work?

The ECO4 grant is designed to improve the energy efficiency of homes occupied by low-income and vulnerable individuals. To qualify for the grant, individuals must be on qualifying benefits or Flex, and their property must have an EPC rating of G, F, or E. Additionally, the EPC score must be improved by two bands. The grant aims to promote energy efficiency and reduce energy costs for those in need.

How much is a new boiler for a house?

The cost of a new boiler for a house can vary depending on various factors such as the type of boiler, size, and installation requirements. Generally, the cost can range between £1,500 to £5,500. However, it is important to note that certain eligibility criteria exist for receiving financial assistance towards a new boiler. This assistance is only available to people on qualifying benefits or Flex, and only for properties that have an EPC rating of G, F, or E, and require an improvement of 2 bands.

Can you get a free boiler if you are over 60?

Yes, it is possible for individuals over the age of 60 to receive a free boiler. However, eligibility for this program is limited to those who meet certain criteria, including being on qualifying benefits or Flex, having a property with an EPC rating of G, F, or E, and requiring an improvement of at least 2 bands in their EPC score. It is important to check with the relevant authorities to determine if you meet the requirements for this program.

What will replace ECO4?

At this time, it is uncertain what will replace ECO4. However, it is important to note that the current program is only available to individuals on qualifying benefits or Flex, and is limited to properties with an EPC rating of G, F, or E that require a 2-band improvement.

When did ECO4 end?

ECO4 is currently available until March 2026. However, it is only available to individuals who are on qualifying benefits or Flex and only for properties that have an EPC rating of G, F, or E. Additionally, the EPC score must be improved by two bands.

Is the government giving grants for home improvements?

Yes, the government is offering grants for home improvements through the Eco4 funding program. However, these grants are only available to individuals who meet certain criteria, including being on qualifying benefits or Flex, having a property with an EPC rating of G, F, or E, and needing to improve the EPC score by 2 bands.

How much does it cost to insulate a house UK?

The cost of insulating a house in the UK can vary depending on factors such as the size and construction of the property. On average, it can range from £1,400 to £10,000. However, it is important to note that certain schemes are available for individuals on qualifying benefits or Flex and for properties with an EPC rating of G, F, or E. In such cases, the EPC score needs to be improved by 2 bands.

Do you want to make your home more energy-efficient and save money on your energy bills?

You may be eligible for an ECO 4 Energy Efficiency Grant. The grants can help you cover the cost of various energy efficiency improvements.

Regulated Ofgem and all work carried out through Trustmark installers to guarantee the highest quality.  

To determine eligibility, simply complete our eligibility form.

It only takes a few minutes, and it could save you hundreds or even thousands of pounds.

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