ECO4

What is the energy company obligation (ECO4)?

The Energy Company Obligation (ECO) is a government energy efficiency scheme in the UK that requires larger energy suppliers to provide funding for energy efficiency measures in the domestic housing sector (owner occupied and private rentals). The scheme aims to reduce carbon emissions and tackle fuel poverty by improving the energy efficiency of homes and reducing energy bills. It is estimated that this scheme will spend approximately £1,000,000,000 per annum until the scheme comes to an end in March 2026.

How long is it running for?

ECO is currently in its fourth phase (ECO4), which began in July 2022 and is set to run until March 2026.

What are the objectives of ECO4?

The fourth phase focuses on supporting low-income and vulnerable households, as well as those living in harder-to-treat properties, such as solid-walled homes. Some of the governments objectives of ECO4 are to:

Obtain an overall annual target of £224,300,000 in bill savings through providing energy saving measures to properties throughout the UK by March 2026.
Insulate a minimum of 90,000 solid wall properties with solid wall insulation.
Reducing the greenhouse gas emissions in the domestic sector to contribute to the governments legally binding carbon reductions targets.
Provide energy efficient measures under ECO4 to a minimum of 150,000 private tenure properties with an energy performance rating of E,F and G.
To Decarbonise the UK by excluding the installation of new and replacement of Oil and LPG heating systems in the UK and replacing them with renewable heating systems.

Who qualifies?

Eligibility criteria for funding varies depending on the type of measure, the type of dwelling and the circumstances of the household occupants, which generally includes factors such as income, benefit recipients, health conditions, and/or energy usage. There are two routes to qualify through: flexible eligibility or HHCRO (Home Heating Cost Reduction Obligation). See if you qualify now.

The scheme is regulated by Ofgem, the UK's energy regulator, and is part of a wider government strategy to transition to a low-carbon economy, meet climate change targets and bring vulnerable people out of fuel poverty.

Which houses qualify?

Providing that the occupant qualifies through one of the means above, the property also must meet certain eligibility criteria to qualify as well. The energyefficiency rating of a property that is owner occupied must have an energy rating between a D and G. Whereas a property in the private rented sector must have an energy rating between E and G.

KEY BENEFITS OF ECO

The Energy Company Obligation 4 (ECO4) is a UK government program that compels major energy suppliers to finance energy efficiency measures in residential properties. Its core mission is to curb carbon emissions and combat fuel poverty by increasing home energy efficiency and reducing energy expenses.
Running from July 2022 to March 2026, ECO4 prioritises vulnerable homes and those that are harder to heat, such as those with solid walls.