ECO4 is just around the corner

As the Government goes through a phase of consulting for ECO4, have you thought about your next steps and where you’ll be focussing your efforts in finding new customers and prospects? ECO4 is just around the corner, you may be aware that ECO3 will be phased out in April next year meaning you may need to rethink your marketing and lead generation strategy. A few changes are being proposed for the new scheme, for example, a push for more homes to have air sourced heat pumps as the government sets to try and phase out new boiler sales by 2035.


What is the ECO4?

The Government is committed to ensuring low-income households have access to sustainable, low carbon warmth as part of a fair transition to net zero. The Energy Company Obligation or ECO4 is a scheme to enable us to be a more sustainable nation and facilitate greater uses of renewable energy. The government sets energy companies with objectives to help us reduce our carbon output. Measures are then put into place by renewable energy installers, assessors, and the like, to make homes more efficient and carbon neutral ensuring we reach the objectives set out in the carbon reduction plans set out by the government.

So, what is being discussed?

1. Continuing to target low income and vulnerable, and fuel poor households.

2. Greater support and deeper retrofit for the least energy efficient homes, requiring homes to meet new minimum energy efficiency requirements.

3. The proportion of the scheme that can be delivered through local authority referrals, and by suppliers, under a reformed local authority and Supplier Flexible Eligibility route.

4. Supporting innovation under ECO.

5. How ECO interacts with other grant funding.

6. Views on a future supplier buy-out mechanism to enable small suppliers to participate in ECO, subject to primary legislation.

Qualifying Benefits

The main objective of the scheme is to improve the least energy efficient housing, improving these houses will contribute towards the UK becoming a carbon net zero nation. To complement the targeting of the least energy efficient homes those in fuel poverty, on benefits or low income. The means tested method to test if homes qualify will continue. However, some of the eligible benefits from the previous schemes (ECO3) will be removed.

Full list of proposed eligible benefits which qualify under ECO4

ECO4 qualifying benefits:
Income based Jobseekers allowance (JSA)
Income related Employment & Support Allowance (ESA)
Universal Credit (UC)
Pension Credit Guarantee Credit Working Tax Credit (WTC)
Child Tax Credits (CTC)
Income Support (IS)
Housing Benefit (new eligible benefit under ECO4)
Pension Credit Savings Credit (new eligible benefit under ECO4)

Thank you for taking the time to read this blog post! We look forward to seeing ECO4 in it’s final form however get in touch or give us a call on 01206 696 300 if you have any queries in the meantime or to see how we can help you find new prospects.

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