EnergyWhat is the ECO4 Scheme? A Relief for Low-income Households

What is the ECO4 Scheme? A Relief for Low-income Households

The Energy Company Obligation (ECO) plan is a UK government-backed project aiming at increasing the energy efficiency of UK houses.

The ECO program, which was launched in 2013, compels energy companies to install cost-effective energy-saving measures in some of the UK’s most vulnerable houses while not breaking the bank for homeowners. Insulation, heat pumps, boiler replacements, and solar panels are examples of such methods. A minor price may be required for installation fees, although these updates are occasionally free.

Since its inception in 2013, over 3.6 million energy-saving measures have been implemented in over 2.4 million UK households, with wall insulation being the most prevalent benefit. According to government estimates, approximately £20 billion in lifetime bill savings have been saved as a result of the government initiative.

There have been five ECO schemes as of 2023, although only ECO4 is actively operational. So if you are looking for the answer to the question “what is the ECO4 scheme?”, read on below for the answers you need.

What is the ECO4 Scheme?

ECO4 is a government-backed project that aims to reduce household carbon emissions and give more energy-efficient solutions to UK households. Homes that participate in the ECO4 Scheme may receive cheap (or free) house insulation, an updated boiler, or a green heating system.

However, ECO4 is only available to the most energy-inefficient households, which means your home must have an Energy Performance Certificate (EPC) of D or lower.

The government implemented ECO4 in April 2022, and it will operate through March 31, 2026. The program is part of the government’s goal of making all housing more energy efficient by 2035.

It is a continuation of ECO3 but with some significant adjustments aimed at making the plan more customer-friendly, such as a concentration on low-income homes and locations with high fuel poverty.

What Does the ECO4 Scheme Include?

The ECO4 plan includes a variety of energy-saving technologies that may be implemented in existing dwellings.

The most typical benefit of the ECO4 Scheme is insulation installation, which may save homeowners up to £1,800 per year. Insulation measures accessible under ECO4 include cavity wall, solid wall, room in a roof, and loft insulation; however, this is dependent on specific family conditions. The ECO4 Scheme employs a fabric-first strategy, which means that it prioritizes making properties more energy efficient before considering additional measures such as heating upgrades.

The ECO4 plan also covers the installation of green heating technologies such as air-source heat pumps and biomass boilers. These cutting-edge heating systems may be used to replace obsolete, inefficient boilers and can save homeowners up to 25% on their energy expenses.

Solar panel installation is still available under the ECO4 Scheme, but only if a heat pump or biomass boiler has been ruled out.

Because not every boiler will be replaced with a heat pump, the ECO4 plan funds the repair and upgrade of existing boilers to make them more efficient.

Households can take advantage of the ECO4 Scheme to make the most of their boilers and use them to their maximum capacity (usually 12 years).

The ECO4 Scheme also covers boiler repair, which might involve diagnostics, cleaning, and repairs to assist to recover boilers.

Final Words

It is a good step towards implementing energy saving into the UK household, especially for low-income families. Now, You don’t have to think twice using the appliances because of big bills.

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