What is the ECO4 Scheme?

Everything you need to know about the Energy Company Obligation Scheme (ECO 4).

What is the ECO 4 Scheme?

ECO4 will be a four year scheme and is intended to run from 1 Apr to 31 mar2026. The main objective of ECO4 is to improve the least energy efficient housing stock occupied by low process and vulnerable households. One route that can be used to identity these households is “ECO4 Flexibility “(ECO4 Flex).

What is the aim of the ECO 4 Scheme?

It is a policy that aims to make homes warmer and households’ emissions lower, as well as making large energy companies accountable for supporting income-restricted households. In other words, ECO is all about energy saving while offering hardship grants for single mothers, fathers, and people with disabilities and families who struggle financially in general.

ECO particularly aims to help vulnerable homes and property holders while being delivered through local authority referrals and companies like UK Energy Support who work closely with Ofgem and energy suppliers to fulfil the Energy Company Obligation.

What is the aproach for increasing Home efficiency under the ECO 4 Scheme?

It is also subject to primary legislation industrial strategy and uses a whole house approach to lower fuel poverty via improved heating systems. The primary legislation listing minimum energy efficiency requirements was originally launched in 2013 and has helped over 2.3 million homes. The previous phase of ECO3 scheme version was replaced by the ECO 4 in April 2022.

Who provides funding for the ECO 4 Scheme?

You can familiarize yourself with ECO4 final stage impact assessment on the government website. The document includes changes, scoring methodology and minimum requirements to allow local authority referrals (through LA Flex – Flexible Eligibility) and private energy efficiency installers to implement the final phase of the ECO consultation.

Who is ECO 4 Scheme for?

The scheme will continue on low income, vulnerable and fuel poor households but with a narrower focus on supporting the least energy efficient homes.

How will the ECO 4 Scheme contribute to reducing energy bills?

A target of national annual bill savings by installing energy efficiency and heating measures to homes in Great Britain. These measures help households to keep their homes warmer, reduce their energy bills and carbon emission.

Reduce bills for low income and vulnerable households. By imposing minimum improvement requirement, the scheme aims to deliver larger reductions in bills for recipients than a single measure approach.

How does the ECO 4 Scheme contribute to reduced carbon emissions?

Helps towards our net zero future by reducing carbon emissions from our housing stock. By targeting the worst homes, the scheme will achieve larger carbon reductions. New fossil fuel-based heating systems will also be limited under ECO4 to help make progress towards the Government’s goal of NetZero 2050.