The Energy Company Obligation, more commonly referred to as ECO, is a government program that gives homeowners and tenants alike an incentive to install energy-efficient technologies in their home. To get the most out of ECO4, its eligibility criteria and LA Flex rules are important if you want to maximise its potential benefits.

Consumer Rights’ expert team are here to assist Coventry residents in alleviating fuel poverty and cutting energy costs by offering access to funding programs such as ECO 4 and LA Flex. Our comprehensive guide covers everything you need to know.

What is ECO4?

ECO 4 is the fourth phase of the UK government’s Energy Company Obligation scheme. Under ECO 4, energy suppliers must offer cost-effective energy-saving solutions in the UK, such as insulation, heat pumps or boiler replacements to reduce fuel poverty, save homeowners money on heating bills and reduce carbon emissions.

ECO 4 funding takes a fabric-first approach to improve homes, prioritising insulation before considering other measures like heating upgrades or other energy savings measures like solid wall and loft insulation. This can save households up to £1,800 annually in energy costs. In addition, solid wall and loft insulation are among the many other measures covered under ECO4.

ECO4 introduces new eligibility rules that make accessing funding simpler for households. Now referred by their local authority and applying through LA Flex rules (allowing people who do not receive benefits to apply), applicants can now more easily get the funding needed to combat fuel poverty and create a greener Britain.

What is the ECO4 eligibility criteria?

Households seeking ECO4 funding must satisfy certain criteria to qualify, including being in receipt of an eligible income-related benefit such as Child Benefit, Disability Living Allowance or Pension Credit Savings Credit and having an annual household income that does not exceed £31,000.

The final phase of the Energy Company Obligation scheme should reach more people than its predecessor. The Government plans to eliminate disability benefits from their list and add Housing Benefits and Pension Credit Savings Credits instead.

Eligible properties may benefit from various measures, including insulation, first-time central heating (FTCH) and renewable energy systems such as air-source heat pumps. The ECO4 scheme will also help inefficient social housing tenants by funding improvements in their homes; additionally, it will cover the installation of green heating systems like biomass boilers so households can save up to 25% on energy bills.

What is the ECO4 application process?

Apply for ECO4 funding via your energy supplier. They’ll conduct an initial phone assessment that includes inquiries about your income, benefits received and property’s energy efficiency rating before scheduling an installation visit from one of their approved contractors to survey and determine which energy-saving measures would work best in your home.

As with previous phases of the scheme, ECO4 aims to assist households with combined household incomes of less than £31,000 who reside in homes classified as an owner-occupied homes (SAP band D or higher for owner-occupier) or E or G for privately rented rentals; however, disability benefits will no longer be eligible; instead, Housing Benefit and Pension Credit Savings Credit will become eligible benefits instead.

To apply for ECO 4 funding through Route 4, LAs, energy suppliers, or DAs must submit an application form with details of their proposed methodology to BEIS. They should demonstrate how this differs from any of the routes already available under ECO4. They must also demonstrate which households they intend on targeting with measures and how this was determined, with credentials provided where necessary for evidence collection purposes.

What is the ECO4 grant?

ECO4 grants are part of the government’s Energy Company Obligation scheme and will run until 2026. They require energy suppliers to offer grants that assist homeowners with installing insulation, new boilers and green heating systems in their homes.

ECO4 stands apart from its predecessors in that it now provides more options for households to meet their energy efficiency obligations, including more measures and adjustments to its scoring methodology for eligibility determination.

Contrary to ECO3, which limited eligibility only to benefits claimants, under ECO4, anyone who meets the income requirements can apply for funding – with 50% allocated specifically for people not receiving benefits.

Reach out to our team immediately if you wish to see if the ECO4 grant may apply, and together, we will find a plan that allows you to upgrade your home without incurring upfront costs.

Why You Need ECO 4 Funding

The Energy Company Obligation (ECO) Scheme, implemented by the government, mandates that energy suppliers reduce heating costs for low-income households through energy efficiency and home insulation measures installed by accredited contractors such as Green Home Systems. Green Home Systems can assist eligible customers in applying for funding through this scheme – Green Home Systems is proud to offer funding through this mechanism for customers eligible under this initiative.

ECO 4 is a four-year program which began on 27th July 2022 and will run until 31st March 2026, designed to increase energy efficiency in homes in Great Britain that have the least potential to do so. Alongside traditional improvements like cavity wall and loft insulation, such as boiler replacement funding as well as renewable heating technologies like heat pumps.

Key to the ECO 4 program and earlier phases is that the government has broadened the eligibility criteria to encompass more households in need, including anyone receiving certain benefits like Income Support, Housing Benefits, Pension Credit, Savings Credit etc. This represents an important advancement that ensures more families can reap its benefits.

The new ECO 4 program takes an innovative fabric-first approach to supporting society’s most vulnerable. This means prioritizing property improvements before installing a heating system – providing positive impacts in our communities while decreasing spending on home heating costs.