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The Energy Company Obligation (ECO4) is the latest stage of the UK government’s scheme designed to support the improvement of energy efficiency in low-income homes.
Launched in April 2022, ECO4 is now open for applications from those who qualify for the scheme.
Under ECO4, those on qualifying benefits can apply for whole-house retrofit support, which will be funded by their energy suppliers. The scheme aims to improve energy efficiency and reduce energy bills for low-income households, as well as reduce carbon emissions and promote sustainable energy practices.
What types of energy efficient improvements will ECO4 cover?
ECO4 home improvements may include, but are not limited to:
- Cavity wall insulation
- Double glazing
- Solar energy panels
- Electric storage heaters
- Heat pumps
- Boiler upgrades
- External wall insulation
- Room in roof insulation
ECO4 is a whole house retrofit approach and will likely deliver a combination of the above measures.
Who pays for the ECO4 scheme?
The ECO scheme provides funding for energy efficiency improvement measures, which are determined and funded by energy companies. It is the responsibility of the energy company to assess the energy efficiency requirements of a home and decide on the funding to be allocated for the necessary improvements.
Most energy companies in the UK have signed up to be part of the ECO4 scheme. If you are interested in applying for ECO4 funding, it is recommended to check with your current energy supplier first to determine if they can assist you. If they are not an ECO4-obliged company, you may still seek help from other energy providers associated with the scheme.
The amount of ECO4 funding allocated to your home’s energy efficiency needs will be determined by the energy supplier. They may also recommend additional measures to improve your home’s energy efficiency, but these may come at an additional cost.
Can I get ECO4 scheme funding?
Eligible ECO4 residents include homeowners, private tenants and individuals receiving income-related benefits, such as:
- Child Tax Credits
- Pension Credit Saving Benefits
- Child Benefits
- Income Based Jobseekers Allowance
- Housing Benefits
- Universal Credit
Eco-for funding focuses on improving the least energy-efficient homes in fuel poverty; therefore, only properties in council tax bands D to G can be eligible.
ECO4 funding is also awarded to social housing with an EPC rating of D, E, F and G.
How to find out if I’m eligible
It’s worth noting that ECO4 is not a grant scheme, and the amount of support that your home is eligible for will be determined by your energy supplier. We recommend speaking with your energy supplier, who will ask you a few questions about your property to determine the level of support available.
The energy supplier will assess your home’s energy efficiency requirements and determine how much ECO4 funding is to be allocated to your home’s energy efficiency improvements. By working with your energy supplier, you can ensure that you receive the support that you need to improve your home’s energy efficiency and reduce your energy bills.
The government’s energy grants calculator is also a useful tool to find out more information about your property and to seek eligibility for a variety of help with your energy costs.
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