Energy Company Obligation(ECO4)

What is ECO4?

ECO4 is the fourth phase of the Energy Company Obligation, a government energy efficiency scheme in Great Britain designed to tackle fuel poverty and reduce carbon emissions. Running from April 2022 to March 2026, ECO4 requires energy companies to deliver energy-saving measures to domestic premises.

With £4 billion of funding available, the scheme aims to improve the energy efficiency of homes, particularly those with low Energy Performance Certificate (EPC) ratings.

As a homeowner or private tenant, you may qualify for:

• Insulation upgrades (loft, cavity wall, solid wall)

• Heating system improvements

• Boiler replacements

• Air source heat pumps

• Solar panel installations

Eligibility for ECO4 is based on a combination of property conditions and household circumstances. Here’s a detailed breakdown of who may qualify:

Property Requirements

1. Energy Performance Certificate (EPC) Rating:

   • Your property must have an EPC rating of D, E, F, or G.

   • Properties with an EPC rating of C or above are generally not eligible.

2. Property Ownership:

   • Homeowners

   • Private tenants (with landlord permission)

   • Some social housing tenants (for specific measures)

3. Property Type:

   • Houses

   • Bungalows

   • Flats

   • Park homes (in some cases)

Household Eligibility

1. Benefit Recipients

If you or someone in your household receives any of the following benefits, you may be eligible:

• Universal Credit

• Income Support

• Pension Credit (Guarantee Credit)

• Child Tax Credit

• Working Tax Credit

• Income-related Employment and Support Allowance (ESA)

• Income-based Jobseeker’s Allowance (JSA)

• Housing Benefit

2. Child Benefit Recipients

Households receiving Child Benefit may qualify if their income is below certain thresholds:

3. Low-Income Households

Households with a gross annual income under £31,000 may be eligible, regardless of whether they receive benefits.

4. Local Authority Flexibility (LA Flex)

Local authorities can refer households they consider to be living in fuel poverty or vulnerable to its effects. This provides an additional route for those who don’t meet the standard eligibility criteria. Criteria may vary by area.

5. Social Housing Tenants

Social housing tenants living in properties with EPC ratings of D, E, F, or G may be eligible for certain measures, particularly if the property has a low energy efficiency rating.

Additional Considerations

• Off-Gas Properties: Homes not connected to the gas grid may be prioritized for certain measures.

• Vulnerable Households: Those with elderly residents, young children, or individuals with health conditions exacerbated by cold may receive priority.

• Previous ECO Measures: If your property has received ECO measures in the past, it may affect your eligibility for further improvements.

The ECO4 scheme offers several key benefits for households and the environment:

1. Reduced Energy Bills: By improving home energy efficiency, ECO4 helps lower energy consumption, leading to significant reductions in household energy costs.

2. Enhanced Home Comfort: Energy efficiency measures like insulation and heating system upgrades create warmer homes in winter and cooler homes in summer, improving overall living conditions.

3. Increased Property Value: Homes with energy-efficient upgrades are often more attractive to potential buyers, potentially fetching higher prices in the property market.

4. Improved Health Outcomes: Better insulated and heated homes can lead to reduced health issues related to poor housing conditions, such as respiratory problems.

5. Carbon Emission Reduction: ECO4 contributes to the UK’s environmental goals by decreasing energy consumption and promoting renewable energy technologies, helping to lower carbon emissions.

6. Tackling Fuel Poverty: The scheme specifically targets low-income, fuel-poor, and vulnerable households, providing financial assistance for energy efficiency improvements.

7. Promotion of Renewable Energy: ECO4 supports the installation of renewable energy technologies like solar panels, reducing reliance on fossil fuels.

8. Long-term Sustainability: By encouraging energy-efficient practices, ECO4 promotes a culture of sustainability within communities, contributing to broader societal shifts towards energy conservation.