Check your grant eligibility and find ECO4 eligible suppliers
The Energy Company Obligation (ECO) is a government-backed scheme, which requires large energy companies to support income-restricted households. The grant enables free energy-saving measures and heating improvements to be installed for eligible customers. The result is warmer homes and lower energy use.
ECO4, which launched in July 2022, is the latest version of this scheme and will be replaced with the ECO+ grant in 2024.
The UK has some of the least energy-efficient homes in Europe. In 2020, for example, UK homes lost an average of 3°C of heat after five hours, compared to 1°C in Germany. Why is this? Well, one reason is that the UK has a larger number of older properties used as homes.
Homes with poor energy efficiency are bad for everyone. For the people living there, the home will be colder for longer in winter. This also means bigger energy bills during a cost of living crisis. In England, 13% were classed as ‘fuel-poor’, which makes any increase in energy bills even harder.
We also can’t ignore the environmental impact. Even if we heat our homes with 100% renewable energy, much of that energy will go to waste without proper insulation. For example, the correct loft and wall cavity insulations could save a huge two tonnes of carbon dioxide emissions every year. In short, the UK will struggle to meet its environmental targets until the majority of our homes become energy efficient.
The ECO4 grant scheme covers a range of measures that improve the energy efficiency of a home. This includes installing:
Cavity wall insulation
First-time central heating
Heating controls
Loft insulation
Replacement boilers
Roof insulation
Solar Thermal and Solar PV
Solid wall insulation (either internal or external)
Other energy-efficiency measures
Put simply, the grant can cover all the major energy improvements the home needs.
The government's ECO4 scheme grant amount depends on a range of factors, such as the property in question and the number of people living there. However, the energy efficiency grant can be worth up to £40,000, which includes the equipment, materials and labour involved.
Most properties available to buy or rent need an Energy Performance Certificate (EPC). The rating scheme measures the energy efficiency of a property, with the highest rating being A and G denoting the lowest. The higher the energy efficiency the higher the rating.
Why might a property have a low rating? There are several reasons, and many of these can be improved upon. For instance:
Poor insulation levels
Low window quality
High energy heating
The size of the property
Properties with ratings D-G can potentially qualify for the ECO4 grant — though this also depends on the circumstances of the people living there.
ECO4 funding is for people in income-restricted households, but there is a specific criteria to be aware of.
If you claim certain benefits and are either a homeowner or private tenant then you are likely to be eligible. A DWP check will be made and you might need to provide extra information (such as your household income).
Eligible benefits include:
Income-based Job Seekers Allowance
Income-related Employment and Support Allowance
Income Support
Pension Credit Guarantee Credit
Working Tax Credit
Child Tax Credit
Universal Credit
Housing Benefit
Pension Credit
Savings Credit
Child Benefit
If you are a landlord with a tenant who claims benefits, please encourage them to apply for the grant. Your property will benefit from the energy efficiency improvements.
Even if you don’t receive any benefits, you might still be eligible through the flexible eligibility (LAFlex) program. Contact your local council to see if they participate in the scheme.
For successful applicants, the grant is paid directly to the installer. They will then carry out the required work.
If your application is unsuccessful, you may still be eligible for other home energy improvement funding. You can find out by completing this eligibility form.
The ECO4 scheme has many benefits for eligible customers, including:
Reducing your energy bills
Improving the value of your property
Making your home warmer
Reducing your carbon footprint.
The grant can make a big difference for people who might be unable to afford these house energy efficiency improvements.
Now you hopeful have more of an idea of whether or not you’re eligible for the ECO4 grant. And if you’re ready to apply, the process couldn’t be simpler — all you need to do is fill out this eligibility form.
If you are eligible, you’ll be notified about the next steps.
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