ECO 4 Grant Scheme

What is ECO?

The Energy Company Obligation (ECO) is a government energy efficiency scheme in Great Britain designed to tackle fuel poverty and help reduce carbon emissions. The scheme has seen 4 iterations, ECO, ECO1, ECO2 and ECO3. The ECO3 scheme closed on 31 March 2022 and the ECO4 Order came into force in July 2022.

ECO 4

The Energy Company Obligation (ECO4) is a government energy-efficiency scheme in Great Britain, designed to tackle fuel poverty and help reduce carbon emissions. ECO is an obligation placed on energy companies to deliver energy efficiency measures to domestic premises. ECO is not a grant scheme; it is up to the energy companies to determine which retrofit projects they choose to fund, the level of funding they provide, and the Retrofit Coordinator and installers that they choose to work with.

ECO4 focusses on improving the least energy efficient homes and households in fuel poverty, as only properties in bands D-G can be treated. It also aims to deliver a more complete upgrade of those homes, shifting to a multi-measure whole-house retrofit approach. Furthermore, a minimum number of private tenure homes in energy efficiency rating band E, F and G must be upgraded throughout ECO4, ensuring the least efficient homes are treated.

There is a new Minimum Requirement (MR) to improve the energy efficiency rating of band D and E homes to at least a band C and band F and G homes to at least a band D. ECO4 aims to encourage the installation of various energy efficient measures such as insulation measures, first time central heating, renewable heating, and district heating connections.