What is ECO 4?
ECO4 is a fully funded government backed scheme
This initiative is designed to provide substantial financial support to improve energy efficiency across the UK, aiding in the nation’s transition towards a greener, more sustainable future. The scheme is part of a broader strategy to address the pressing issue of climate change by reducing the carbon footprint of residential properties.
ECO4 is an Energy Company Obligation Scheme where the largest Energy Companies in the UK have an obligation set to reduce carbon emissions and work towards being 100% carbon neutral. This obligation is mandated by the UK government, ensuring that significant progress is made in the fight against climate change. The scheme targets the largest energy providers, compelling them to take active steps in reducing their environmental impact. By imposing these obligations, the government ensures that these companies contribute to national goals for carbon neutrality, developing a collective effort towards sustainability.
A large portion of the UK households have an Energy Efficiency rating below a D. This is a critical issue as it indicates a substantial number of homes are inefficient, leading to higher energy consumption and increased carbon emissions. The UK Government are committed to improve as many homes as possible to an EPC Band C rating by 2035. This commitment is part of a strategic plan to enhance the living conditions of residents, reduce energy bills, and decrease the environmental impact. Achieving an EPC Band C rating means that homes will be significantly more energy-efficient, contributing to lower overall energy consumption and a reduction in greenhouse gas emissions.
The ECO4 Scheme spans over 4 years from 2022-2026 and is worth £4 billion. This funding is to deliver energy efficiency and heating measures to homes in the UK. The substantial financial investment underscores the government’s dedication to this cause. Over the four-year period, the scheme aims to implement a wide range of energy-saving measures, including insulation, heating system upgrades, and the installation of renewable energy technologies. These improvements are designed to make homes more energy-efficient, comfortable, and affordable to heat.
Private landlords are eligible for mains gas FTCH (First time Central Heating) and Renewable Technologies, but not gas boiler upgrades. This aspect of the scheme ensures that rental properties can also benefit from improved energy efficiency measures. By allowing access to first-time central heating systems and renewable technologies, the scheme supports the enhancement of rental properties’ energy performance.
All ECO4 measures that are carried out must be conducted by an approved Trustmark installer and hold all the relevant qualifications. This requirement ensures that all work is performed to the highest standards, providing homeowners with confidence in the quality and safety of the improvements. Trustmark approval indicates that installers have met rigorous criteria and adhere to best practices in the industry, ensuring that the measures implemented are safe, effective and durable.
The Assessments will be carried out by qualified Retrofit Assessors and managed by a Retrofit Coordinator. Any work that is installed under the ECO4 funding will come with Insurance Backed Guarantees. These professionals play a crucial role in the scheme, ensuring that each property’s needs are accurately assessed and that the improvements are correctly implemented. The Insurance Backed Guarantees provide additional security for homeowners, ensuring that they are protected in case of any issues arising from the installation of energy efficiency measures.
ECO4 only applies for homeowners and tenants on means tested benefits or child benefits *dependant on income threshold. This ensures that the support is directed towards those who need it most, particularly low-income households that are more likely to struggle with high energy costs. By targeting these groups, the scheme aims to reduce fuel poverty and improve the quality of life for vulnerable groups.
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