The Energy Company Obligation

UK Government's ECO Scheme

The ECO 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.

What is the ECO scheme?

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.

Who is Eligible for the ECO4 Funding?

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.

Home Heating Cost Reduction Obligation (HHCRO)

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.

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.

Benefits of the ECO4 Scheme

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.

What is an ECO scheme?

The Energy Company Obligation (ECO) scheme is a UK government initiative aimed at reducing carbon emissions and tackling fuel poverty by improving the energy efficiency of homes, particularly for low-income and vulnerable households.

What is the New ECO scheme 2023?

The latest phase, ECO4, launched in August 2022 and is scheduled to run until March 2026. It continues to focus on improving energy efficiency in homes occupied by low-income and vulnerable people.

Who Qualifies for the ECO4 Scheme?

Eligibility for ECO4 is typically for people on Qualifying benefits or meeting criteria under the Flex guidelines. This includes a range of benefits like Income Support, Universal Credit, and Pension Credit.

Is the ECO4 Scheme Legitimate?

Yes, ECO4 is a legitimate government initiative enforced by Ofgem and funded by energy companies to improve home energy efficiency.

Do I Qualify for the ECO Scheme?

Eligibility depends on several factors, including financial status, benefits received, and home’s energy performance. You can check your eligibility by completing the Eco-Home Network’s eligibility form.

Does PIP Qualify for ECO4?

Depending on additional criteria, Personal Independence Payment (PIP) may qualify under the Flex part of the ECO4 scheme.

Is the ECO Scheme Free?

Many ECO scheme grants cover the full cost of improvements, such as boiler replacement or insulation, making them free to the eligible homeowner. However, this can vary based on the specific measures and individual circumstances.

Is the Free Boiler Scheme a Con?

The free boiler scheme under ECO is a legitimate government-backed initiative to replace inefficient boilers for eligible households.

Does ECO4 Include Solar Panels?

Yes, ECO4 includes grants for solar panel installations for eligible properties, aiming to improve energy efficiency and reduce carbon emissions.

Can You Get Solar Panels on ECO4?

Solar panel grants are available under the ECO4 scheme for qualifying households.

What Can I Get on the ECO Scheme?

The ECO scheme grants various energy efficiency improvements like boiler replacement, cavity wall insulation, loft insulation, heat pumps, and solar panels.

How Much is the ECO4 Grant?

The value of the ECO4 grant varies based on the improvement measures required and the specific circumstances of the household. It can range from partial to full coverage of costs.

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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