ECO4 stands for Energy Company Obligation phase 4. This scheme is a UK government-backed energy efficiency scheme designed to combat fuel poverty and support the country’s net-zero carbon emissions goals.
Set to sail in April 2022, the scheme is the fourth and final phase of the Energy Company Obligation initiative, and is expected to run until March 2026, unless energy suppliers meet their targets earlier. As of the time of publishing this article, there is no official confirmation that the scheme will be extended beyond this date.
As energy prices continue to strain household budgets and environmental concerns rise, ECO4 is initiated to play as a mechanism to improve the living conditions of vulnerable UK households. Let’s explore what the ECO4 scheme aims to achieve, how it’s performing, and who’s involved.
What is the ECO4 Scheme Trying to Achieve?
The main focus of ECO4 is to reduce the energy bills of low-income households and as well tackle fuel poverty amongst households in the UK by making their homes more energy-efficient. The scheme focuses on installing modern and eco-friendly technologies in homes that not only cut down heating costs but also help reduce carbon emissions.
- Reduce Fuel Poverty: By funding insulation upgrades and energy-efficient heating systems.
- Free boiler installation
- Promotes the UK’s Net-Zero Goals: Helps meet the 2050 emissions reduction target.
- Improve EPC Ratings: Upgrades low-rated homes (D–G) to at least EPC Band C.
- Promotes Green Technologies: Promotes heat pumps, solar panels, and smart controls.
How Successful is ECO4 So Far?
- According to a government report as at the end of 2024, it is estimated that 15.2 million properties in Great Britain had cavity wall insulation (71 per cent of properties with a cavity wall), 17.5 million had loft insulation (67 per cent of properties with a loft) and 876,000 had solid wall insulation (10 per cent of properties with solid wall).
- OFGEM also accounted for a total of 56,855 inefficient boilers replaced
- The Government report shows that by the end of September 2024, approximately 207,700 households benefited from energy efficiency improvements to their properties.
Who Are the Major Players in ECO4?
A coordinated effort between energy suppliers, local authorities, and certified installers is driving the success of ECO4 in the UK households.
1. Energy Suppliers
2. Local Authorities: Refer households via ECO4 Flex
3. Approved Installers
Setback Facing the ECO4 Scheme
Although it is a government-run initiative, the scheme still suffers from some setbacks as there isn’t enough awareness among the UK public. However, beyond that, the following still stand out as challenges the scheme faces.
- Low Public Awareness: Only 6% of UK residents are aware of ECO4
- Installer Shortages: Skills gaps are slowing down project completion
- Complex Application Processes: Some eligible applicants are deterred by the paperwork
The ECO4 scheme is an impactful tool for improving the energy efficiency of the UK’s housing stock while also reducing fuel poverty in the nation. With over 207,000+ homes upgraded and carbon savings in the millions of tonnes, ECO4 is not just impactful but essential for every household.
You could also benefit from this scheme while limited funds are available.