As we all know, ECO3 comes to an end in March 2022… But fear not, as you can apply for ECO4 which starts on the 1st of April. As with every ECO scheme that has come before, there are some changes that come with this phase. We have laid out everything we know so far in this blog, so you can go into the next phase extremely prepared.
The final phase of the plan
ECO4 is the final stage of the Government’s Energy Company Obligation and is due to run from the 1st of April 2022 to the 31st of March 2026. At the moment, the Government is considering four key changes to the eligibility criteria. These include changes to qualifying benefits, changes to the number of measures installed under LA Flex, proposed EPC improvement requirements and removal of boilers from the scheme.
Changes to qualifying benefits
Under the new scheme, the Government is planning to remove a number of disability benefits from phase four. They also intend to include some new benefits to the scheme, including Housing Benefit and Pension Credit Savings Credit.
Changes to the number of measures to be installed under Local Authority Flexible Energy
The Local Authority Flexible Energy rules (LA Flex) allow councils to set their own eligibility criteria, by publishing a statement of intent for flexible energy, allowing households that don’t claim benefits to access ECO funding. At the moment, energy companies are allowed to use a maximum of 25% of their obligation under the LA Flex rules, but this will be raised to 50% as part of ECO4.
Proposed additional EPC improvement requirements
The Government is proposing requirements for minimum increases in the energy efficiency rating of properties, after having measures installed under an ECO scheme. Properties that have an existing EPC rating of F or G, must use the funding to achieve a rating of at least D. Properties with a rating of D or E must achieve at least a C rating. The hope is that this approach will increase the number of grants, thus achieving more energy efficiency savings.
The proposal also includes a minimum number of band E, F and G homes being upgraded, so the most inefficient homes are not left behind.
Removal (almost) of boilers from the scheme
Under ECO3, almost 134,000 boilers were installed, but under ECO4 the Government plans to reduce this number to just 5,000. There will be additional rules surrounding the types of boilers that qualify for funding, meaning very few households will be eligible for boiler grants under the new rules.
We hope that by breaking down the proposals the Government is laying out for ECO4, the team at Green Deal First have helped you to understand how the new phase can benefit even more of your customers. Of course, once ECO4 is implemented in April 2022, we will still be here to help you make funding applications and advise on whether or not your client is eligible for ECO funding.