Launched in April 2022 and running until March 2026, the Energy Company Obligation (ECO4) is a UK government program tackling two crucial issues: fuel poverty and carbon emissions. It achieves this by incentivizing energy companies to invest in energy-saving measures for homes across Great Britain.
Here’s the twist: ECO4 isn’t a direct grant scheme for homeowners. Instead, it places an obligation on energy companies to allocate funds towards approved energy efficiency projects. These companies have some flexibility in choosing which projects they support, the level of funding they provide, and the contractors they work with.
Who Benefits from ECO4?
ECO4 prioritizes homes that stand to gain the most from energy efficiency improvements. This includes:
- Homes with low Energy Performance Certificate (EPC) ratings: These are typically homes rated bands D-G, meaning they’re less energy-efficient and have higher heating costs.
- Fuel-poor households: Households struggling to afford adequate heating are a key target, as ECO4 can significantly reduce their energy bills.
What Energy-Saving Measures are Covered?
ECO4 offers a range of potential improvements to enhance your home’s energy efficiency:
- Insulation upgrades: This can include loft insulation, cavity wall insulation, or a combination of both, significantly reducing heat loss and lowering your heating needs.
- First-time central heating installations: If your home currently lacks central heating, ECO4 could help with its installation, providing a more comfortable and energy-efficient heating solution.
- Renewable heating upgrades: ECO4 can potentially support switching to cleaner and more sustainable heating systems like heat pumps, which extract heat from the environment.
- District heating connections: In some cases, ECO4 might support connecting your home to a district heating network, which can be a more efficient way to heat your home.
Is a Boiler Upgrade Guaranteed?
While boiler upgrades are possible under ECO4 in specific situations, it’s not the sole focus. The program takes a more comprehensive “whole-house retrofit approach” that considers multiple energy-saving measures to maximize the overall impact. Upgrading your boiler might be part of the solution, but ECO4 prioritizes a holistic approach to improving your home’s energy performance.
How Do I Apply for ECO4?
Unlike some grant programs, there’s no direct application process for homeowners under ECO4. Energy companies manage the program and identify eligible households based on factors like EPC rating and fuel poverty status.