We understand how important energy efficiency improvements are, not just for the environment, but also for helping households reduce their energy bills. That’s why we’ve always tried to offer ECO4 installations fully funded wherever possible. Unfortunately, due to recent funding changes beyond our control, this is becoming increasingly difficult.
What’s Changed?
From April 2024, utility companies have been steadily reducing the amount of funding available for ECO4 installations. These cuts mean that:
- The funding available is now often less than the actual cost of the install.
- Around 30–40% of projects that previously qualified for full funding can no longer go ahead without a contribution.
- Some homes that were once eligible for full funding no longer qualify at all, simply due to changes in funding bands.
Why Funding Isn’t Always Enough
ECO4 funding is based on energy performance certificates (EPCs). Homes with poorer energy ratings receive more funding, as they require more improvements to reach efficiency standards. However, the actual cost of materials and installation doesn’t always align with the funding bands.
And while funding rates are dropping, the cost of materials and labour remains the same or in some cases, has increased.
We’d Rather Offer a Solution Than Say No
Instead of refusing people the opportunity to improve their homes, we’ve made the decision to ask for a customer contribution to help cover the gap in funding. This allows us to still deliver installs that would otherwise be cancelled due to funding shortfalls.
We believe this approach is fairer and more proactive, it gives more households the option to go ahead with energy efficiency improvements, rather than being turned away altogether.
The Process Still Takes Time and Resources
Even before an install can go ahead, there’s a significant amount of work involved, including:
- Liaising with local councils
- Carrying out home energy surveys
- Processing and submitting paperwork through our office
These are all necessary steps to make sure everything is compliant and ready to proceed.
We’re Doing Our Best to Help
We know how disappointing it is to hear that a contribution may be required, especially if you were expecting full funding. Please know this decision hasn’t been taken lightly. Only a small number of customers have been affected, and we are doing everything we can to keep contributions as low as possible and continue helping as many households as we can.
We’re still committed to delivering high-quality, energy-efficient installations and we’ll always be transparent about costs and funding eligibility from the start.
