The ECO4 scheme is a government initiative called Energy Corporate Obligation (ECO) aimed at improving energy efficiency, reducing carbon emissions and alleviating fuel poverty.
Large energy companies must allocate funds for a range of energy-efficient housing improvements for low-income households. The ECO4 system is the latest version to replace his previous ECO3 system and will be launched in April 2022.
For landlords, the EPC rating (Energy Performance Certificate) of the property determines which energy efficiency measures can be funded under the ECO4 program.
Private sector properties with an EPC rating of E, F, or G may be subject to various actions. Modernisations covered by ECO4 funding include cavity wall insulation, loft insulation, exterior wall insulation, interior wall insulation, room in roof insulation, underfloor insulation, central heating for the first time, air source heat pumps, electric storage heater upgrades, and heating controls. It is includes smart thermostats.
To access ECO4 funds, landlords must determine if their tenants meet household eligibility requirements. Tenants must receive certain benefits or be classified as low-income by the municipality. Landlords can use a free subsidy checker provided by a trusted registered installer to determine eligibility and contact an approved installer in their area.
The ECO4 program helps landlords meet their minimum energy performance certificate requirements. This certificate is required by law for properties rented in the private rental sector from 1 April 2018.
Landlords can contact Anesco if they need further information or assistance regarding the ECO4 scheme. Anesco acts as an administrative agent for this scheme and has access to approved local installers.
ECO4 is backed by large and medium energy suppliers. They have legal obligations under the Energy Company Obligation (ECO) scheme. This includes companies like British Gas, EDF Energy, E.ON, Scottish Power, and Octopus Energy.
For more information please go to the government’s Ofgem website.