Unlocking free energy efficiency upgrades: Understanding ECO4

Ever heard the term "ECO" or "ECO4" floating around when people talk about energy efficiency or government grants? Knowing what you are entitled to can be confusing and off-putting. Our ECO Expert, David McFarlane, simplifies it for you.

If you're a homeowner or private tenant in the UK, ECO is definitely something worth understanding. In a nutshell, ECO4 is a government backed scheme designed to help make homes more energy-efficient, reduce carbon emissions, and ultimately save you money on your energy bills.

Think of it as a way for the UK government to encourage energy companies to invest in improving the energy efficiency of homes across the country, particularly those that are less efficient and occupied by people who might struggle to afford the upgrades themselves.

So, How Does ECO4 Actually Work?

ECO4 stands for "Energy Company Obligation" (ECO), and the "4" just signifies it's the fourth iteration of this scheme. ECO has been operating since 2013, and the current version, ECO4, which started in 2022 runs until 2026.

The annual cost of ECO4 is estimated at £1 billion per year, and this is paid by the energy companies, who raise the money by applying a green levy to every household energy bill in the UK whether they benefit from ECO or not.

Under ECO4, larger energy suppliers are given a target to deliver energy-saving measures to domestic properties. This isn't about them directly handing out money; instead, they work with a network of approved installers to fit things like:

• Improved Insulation: Think loft insulation, cavity wall insulation, internal solid wall insulation, room-in-roof insulation, and even underfloor insulation. Proper insulation stops heat from escaping your home, keeping it warmer for longer.
• Efficient Heating: This could include replacing old, inefficient boilers with a new renewable heating system like an air source heat pump.
• Solar panels: Depending on your home's needs, other measures like solar panels might also be covered.

Who Can Benefit from ECO4?

ECO4 is primarily aimed at those who need it most. While the exact eligibility criteria can be a bit nuanced with each household being individually assessed by an approved installer, generally speaking, the scheme targets:

• Low-Income Households: Households receiving certain benefits are often a key focus.
• Vulnerable Households: This can include those with health conditions made worse by a cold home, or households with young children or elderly residents.
• Homes with Low Energy Performance Certificates (EPC): If your home has a low EPC rating (like D, E, F, or G), it's likely considered less energy-efficient and therefore a prime candidate for ECO4 improvements.

It's important to note: You don't directly apply to the government for ECO4. Instead, you'd typically contact an approved installer, such as Green Home Systems, who works under the ECO4 scheme. They will assess your eligibility and your home's suitability for the various energy-saving measures.

Why Should You Care About ECO4?

There are several compelling reasons to look into ECO4 if you think you might be eligible:

• Lower Energy Bills: This is the most immediate and tangible benefit. By making your home more energy-efficient, you'll need less energy to heat it, leading to significant savings on your gas and electricity bills.
• Warmer, More Comfortable Home: No one likes a draughty, cold house. ECO4 measures can dramatically improve the comfort of your living space.
• Reduced Carbon Footprint: By using less energy, you're also contributing to a healthier planet by reducing your home's carbon emissions.
• Increased Property Value: An energy-efficient home with a better EPC rating can be more attractive to potential buyers if you decide to sell in the future.
• Often Free or Heavily Subsidised Works: For eligible households, the costs of the energy-saving installations are often fully covered or significantly subsidised through the ECO4 scheme, meaning you don't have to pay a fortune upfront.

Assessing your property

Before any energy-saving improvements can be made to your home under the ECO4 scheme, a crucial first step is something called a "Retrofit Assessment". Think of this as a comprehensive health check for your property, carried out by a qualified expert who is called a Retrofit Assessor.

The Retrofit Assessor will visit your home to inspect everything from your current insulation and heating system to your windows, doors, and even how you use energy day-to-day. They'll also check for any existing issues like damp or poor ventilation. This detailed evaluation helps to pinpoint exactly where your home is losing heat and identifies the most effective, tailored solutions to make it warmer, more energy-efficient, and ultimately save you money on your bills.

The Retrofit Assessor then liaises with another qualified professional called a Retrofit Coordinator to design the best energy efficiency improvements for your home, whether this be upgrading the loft insulation, new cavity wall insulation, installing a new renewable heating system and solar panels to the roof. 

The retrofit assessment is a vital step to ensure any upgrades are right for your specific home and will deliver the best results.

How much can I save?

After your retrofit assessment, a calculation is made to establish your Annual Bills Savings (or ABS) score. This simply refers to the estimated amount of money you could save on your energy bills each year after the upgrades have been installed.

It's a key way for the scheme to measure the effectiveness of the energy efficiency measures. So, if an improvement is said to have an ABS of £300, it means that, on average, your household would be expected to spend £300 less on heating and power over the course of a year, compared to before the work was done.

These savings are calculated by experts and are a direct reflection of how much more efficient your home becomes, helping you keep more money in your pocket.

How to Find Out More and Apply

While ECO4 can be complicated it is still a fantastic opportunity for many households to improve their homes, save money, and contribute to a greener future, all with significant financial assistance.

If you're interested in finding out if you qualify for ECO4 we can help talk to you about it and explain the next steps. You can also apply online through our website here. Just fill out the form and we will contact you to discuss your application.

So, if you're looking to slash your energy bills, enjoy a warmer home, and boost your property's value - potentially for free - it's time to see if ECO4 could be your answer.

Green Home Systems - Your Energy Efficiency Experts

Green Home Systems has been operating since 2014 and is one of Scotland’s leading energy efficiency installers. It is an accredited energy efficiency specialist holding multiple industry qualifications and provides a wide range of services including thermal insulation, solar panels and heat pumps. Over the last decade it has completed more than 20,000 retrofit projects, including 10,000 solar panel installations, and unlocked over £50M of grant funding for homeowners and communities.

If you would like more information about Green Home Systems or to speak to a member of the team contact us here.