Introducing ECO4: The Energy Company Obligation Scheme
The Energy Company Obligation (ECO4) is a noteworthy energy-efficiency initiative implemented by the British government. Its primary objective is to combat fuel poverty and reduce carbon emissions. Under this scheme, energy companies are obligated to implement energy-saving measures in residential properties. It’s important to note that ECO4 is not a grant program. Instead, energy companies have the freedom to choose the retrofit projects they wish to fund, the level of funding they provide, and the Retrofit Coordinator and installers they collaborate with.
ECO4 measures became operational on April 1, 2022, and the scheme will remain in effect until March 31, 2026. The focus of ECO4 lies in enhancing the energy efficiency of the least efficient homes, particularly those occupied by households facing fuel poverty. Therefore, only properties categorized within bands D to G are eligible for treatment. Additionally, ECO4 strives to facilitate comprehensive upgrades for these homes, embracing a holistic approach to whole-house retrofitting. Furthermore, a specific number of privately owned homes falling within energy efficiency rating bands E, F, and G must undergo upgrades during the ECO4 period, ensuring that the least efficient properties receive attention.
One of the notable aspects of ECO4 is the introduction of a Minimum Requirement (MR), which mandates improving the energy efficiency rating of band D and E homes to at least band C, and band F and G homes to at least band D.
ECO4 also encourages the implementation of various energy-efficient measures, such as insulation measures, first-time central heating installations, renewable heating systems, and district heating connections.
