ECO4 scheme grants explained

The Energy Company Obligation (ECO4) scheme offers a clear path for households to enhance their home energy efficiency, reduce bills, and improve comfort. This UK government initiative empowers homes to invest in their energy future, aligning with Fuse's vision of "a future with power to play with".

Understanding schemes like ECO4 can help you make informed decisions about your home's energy. While Fuse Energy does not administer these grants or perform installations, we are committed to helping you manage your energy effectively once your home is more efficient.

Making your home more energy-efficient through schemes like ECO4 is a smart move. Once your home is upgraded, Fuse Energy can help you take control of your energy usage with clear pricing and support. Click here to switch to Fuse Energy today.

What is the ECO4 scheme?

The ECO4 scheme is the fourth iteration of a UK government energy efficiency programme designed to tackle fuel poverty and reduce carbon emissions across Great Britain. It places a legal obligation on large energy suppliers to fund and deliver energy efficiency measures to eligible households.

Understanding the Energy Company Obligation

Launched in April 2022, ECO4 builds on previous phases of the scheme, which began in 2013. The scheme requires obligated energy suppliers to promote measures that improve the ability of low-income, fuel-poor, and vulnerable households to heat their homes. This means that qualifying households could receive significant home improvements at little to no cost, or even fully funded. The scheme is regulated by Ofgem, which administers ECO4 on behalf of the Department for Energy Security and Net Zero. ECO4 is set to run until 31 December 2026.

Key objectives of ECO4

The primary objectives of the ECO4 scheme are to improve the energy performance of inefficient homes, reduce fuel poverty, and lower carbon emissions across Great Britain. It aims to support the UK's progress towards Net Zero targets by ensuring that energy efficiency upgrades are accessible to those who need them most. Unlike earlier versions, ECO4 adopted a "whole house" retrofit approach, prioritising improvements to a property's fabric (such as insulation) before upgrading heating systems.

How ECO4 benefits households

Households benefiting from ECO4 can expect warmer homes and lower energy bills through reduced energy consumption. The scheme provides funding for various energy efficiency upgrades, with many improvements being fully funded for eligible households, and grants do not need to be repaid. This helps to alleviate the financial burden of energy costs, particularly for vulnerable individuals.

Who is eligible for ECO4 grants?

Eligibility for ECO4 grants is primarily based on receiving certain means-tested benefits or meeting specific income requirements under the 'LA Flex' rules. The scheme targets properties with lower Energy Performance Certificate (EPC) ratings, typically D, E, F, or G.

Means-tested benefits criteria

Households are often automatically eligible if they receive one of the following means-tested benefits:

• Universal Credit
• Pension Credit (Guarantee Credit and Savings Credit)
• Income Support
• Income-based Jobseeker's Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)
• Working Tax Credit
• Child Tax Credit
• Housing Benefit
• Child Benefit (subject to income thresholds)

Local authority Flex (LA Flex) rules

Even if a household does not receive the listed benefits, they might still qualify under the Local Authority Flexible Eligibility (LA Flex) rules. These rules allow local councils to extend eligibility to households based on criteria such as:

• A household income below a certain threshold, typically under £31,000 per year.
• Someone in the home having a diagnosed cold-related health condition, such as cardiovascular disease, respiratory illness, limited mobility, or immunosuppression.
• Living in a fuel-poor area or being identified as vulnerable by the local authority.

Citizens Advice, Citizens Advice Scotland, or NHS healthcare professionals can also refer households for LA Flex support.

Property requirements

In addition to household eligibility, the property itself must meet certain criteria. ECO4 primarily targets homes with an EPC rating of D, E, F, or G. The scheme's goal is to improve these homes to at least an EPC Band C. The property must also be owner-occupied or privately rented with landlord consent.

What grants are available through ECO4?

ECO4 grants cover a range of energy efficiency measures designed to improve a home's fabric and heating systems. The goal is to reduce heat loss and improve overall energy performance.

Insulation grants

Insulation measures are a critical component of the ECO4 scheme, helping to retain heat within a home and reduce the need for excessive heating. Available insulation grants include:

• Loft insulation: Reduces heat loss through the roof.
• Cavity wall insulation: Fills the gap between inner and outer walls to reduce heat loss.
• Solid wall insulation: Applicable for homes with solid walls, which are often less energy-efficient.
• Other types of insulation may also be available.

Heating upgrades

The scheme also provides funding for upgrades to heating systems, making them more efficient and effective. These can include:

• Boiler replacement: Replacing old, inefficient boilers with modern, energy-efficient models, typically condensing boilers.
• First-time central heating: Installation of a full central heating system for properties that currently lack one.
• Storage heaters: Modern high-retention models can be installed.

Renewable heating measures

In specific cases, ECO4 can support the installation of renewable heating technologies:

• Air source heat pumps (ASHPs): Often installed in off-gas homes, sometimes alongside solar panels. You can learn more about the air source heat pump cost in the UK.
• Solar panels (photovoltaic systems): Can be included in specific circumstances to generate electricity. For more information, explore the solar panel cost.

How to apply for an ECO4 grant

Applying for an ECO4 grant involves several steps, typically starting with an initial eligibility check and then working with approved providers.

Finding an obligated energy supplier

Large and medium-sized energy suppliers have a legal obligation to participate in the ECO4 scheme. These suppliers are responsible for meeting their targets and ensuring compliance. You can contact your current energy supplier or other obligated suppliers to inquire about their ECO4 offerings.

Working with approved installers

The practical delivery of ECO4 upgrades is carried out by TrustMark-registered installers, local authorities, and retrofit coordinators. It is crucial to work only with providers, assessors, and installers registered with TrustMark or other relevant oversight bodies to ensure quality and compliance.

The application process step-by-step

The general application process involves:

1. Initial eligibility check: A basic screening based on benefit status, income, health conditions, or housing circumstances.
2. Document collection: Providing valid evidence of identity, address, and proof of income or benefit entitlement.
3. Retrofit assessment: A PAS 2035-compliant whole-house energy assessment and technical suitability checks will be scheduled.
4. Installation: Once approved, certified installers will carry out the energy efficiency measures.
5. Completion documentation: Receive documentation for the installed improvements.

Maximising your savings after ECO4 improvements

Once your home has been made more energy-efficient through ECO4 grants, the next step is to maximise those savings. This involves smart energy management and making informed choices about your energy supply.

Leveraging smart technology

Smart meters, for example, provide real-time data on your energy consumption, allowing you to identify areas where you can save more. Connecting smart devices, such as smart thermostats or EV chargers, can further optimise your energy use and potentially unlock access to specialised tariffs.

Understanding your energy consumption

Regularly reviewing your energy usage patterns can help you make behavioural changes that complement your home improvements. The Fuse Energy app is designed to provide clear insights into your electricity and gas consumption, helping you understand where your energy goes and how to use less during peak times.

Choosing the right energy tariff

Selecting an energy tariff that aligns with your improved home efficiency is crucial. If you have solar panels or a battery storage system, an export tariff could allow you to earn money by selling surplus electricity back to the grid. Smart tariffs, often linked to time-of-use, can reward you for shifting consumption to off-peak hours when energy is cheaper and greener.

Fuse Energy and your energy-efficient home

Investing in energy efficiency through ECO4 is a "power play" that shifts the balance of power into your hands, reducing reliance on external energy factors. Fuse Energy complements these gains by providing tools and services to help you manage your energy effectively once your home is more efficient.

Our commitment to energy management

Fuse Energy believes in empowering households to gain control over their home energy. Our vision is a future with "power to play with", where energy is so abundant it stops being a constant worry. By improving home energy efficiency through ECO4, customers are taking a proactive step to "never settle" for high energy waste.

Empowering you with "power to play with"

While ECO4 reduces energy demand, Fuse's smart tariffs and planned app-based control aim to help you maximise savings after improvements. We provide the capability to hack the system and protect yourself from surprises and shocks, making your energy experience transparent and rewarding. This helps reduce the "fear of the bill" and enables you to truly play with your energy.

Join Fuse Energy for smarter savings

Fuse Energy does not administer ECO4 grants or perform installations. However, once your home is more efficient, our smart tariffs, planned app-based control, and focus on abundant, cheaper energy can help you further reduce your bills and gain greater control over your energy consumption.