What is the ECO4 Scheme? A Complete Guide for Installers

The ECO4 Scheme (Energy Company Obligation) is a government-backed initiative aimed at improving energy efficiency and reducing carbon emissions across the UK. It is the fourth phase of the ECO program and focuses on helping low-income households, vulnerable people, and those in fuel poverty access energy-saving improvements like insulation and heating system upgrades. For energy-efficient installations, the ECO4 scheme opens up significant opportunities for installers to contribute to a greener future while also benefiting financially.

This comprehensive guide will walk you through the key details of the ECO4 Scheme, explain how installers can get involved, and outline the benefits of participating in this vital energy-saving initiative.

For further details on the ECO4 Scheme, visit ECO4 Energy Saving.

1. What is the ECO4 Scheme?

The ECO4 Scheme is part of the UK government’s commitment to reducing carbon emissions and improving energy efficiency in residential homes, particularly those that are more likely to experience fuel poverty. As a follow-up to the previous phases of the Energy Company Obligation (ECO) program, ECO4 is designed to provide funding for energy-saving improvements in households across the country.

Unlike previous schemes that focused primarily on heating systems and insulation, ECO4 broadens the scope to include a variety of energy-saving measures. The key goal is to help lower energy costs for households while reducing carbon emissions to meet the UK’s net-zero goals.

The scheme offers funding to eligible homeowners and tenants, and it is up to approved installers to deliver the necessary upgrades.

2. Who is Eligible for the ECO4 Scheme?

The ECO4 Scheme specifically targets households that meet certain eligibility criteria. These typically include:

  • Low-Income Households: Households receiving benefits like Universal Credit, Pension Credit, or Child Tax Credit.
  • Vulnerable Individuals: Homes occupied by people who are elderly, disabled, or suffer from long-term health conditions.
  • Fuel-Poor Households: Those living in homes with low energy efficiency, particularly in older properties with outdated heating systems or poor insulation.

In addition, the scheme may also target specific regions that have a higher incidence of fuel poverty. The goal is to provide assistance to those who need it most to ensure that no one is left behind in the transition to greener, more energy-efficient living.

3. How Can Installers Get Involved in the ECO4 Scheme?

To become an ECO4 Scheme Installer, the first step is to gain approval from an obligated energy company. These energy companies are responsible for delivering energy-saving improvements to eligible homes, and they partner with certified installers to carry out the work.

Here’s how you can get involved:

Step 1: Apply for Accreditation

Installers must be accredited by an industry-recognized certification body such as TrustMark or the Microgeneration Certification Scheme (MCS). These certifications ensure that you meet the necessary standards for installing energy-efficient measures like heating systems, insulation, and renewable energy technologies.

Step 2: Partner with Energy Companies

Once you’re accredited, you can partner with energy suppliers who are obligated under the ECO4 Scheme to fund and facilitate energy-saving installations. These suppliers will provide the necessary funding for the installations, and you’ll be responsible for completing the work to meet specific technical standards.

Step 3: Complete Installations

As an ECO4 Installer, your role is to carry out the energy efficiency improvements in eligible homes. The types of installations you may be responsible for include:

  • Loft insulation
  • Cavity wall insulation
  • Boiler replacements or upgrades
  • Air source heat pumps
  • Solid wall insulation

Step 4: Ensure Compliance

It’s essential to ensure that all installations comply with the guidelines set out by the ECO4 Scheme and the relevant industry standards. You’ll need to provide the required paperwork and submit evidence to demonstrate that the work has been completed correctly.

Step 5: Get Paid

Installers receive payment for each job completed under the ECO4 Scheme. The exact amount depends on the type and complexity of the installation, as well as the funding available from the energy company.

4. What Are the Benefits of Becoming an ECO4 Installer?

There are several advantages to participating in the ECO4 Scheme as an installer:

Increased Business Opportunities

By joining the ECO4 Scheme, you tap into a growing market for energy-efficient home improvements. As more homeowners and tenants look to reduce their energy bills and carbon footprints, the demand for ECO4 installations is expected to rise. This opens up significant opportunities for installers to expand their customer base and secure consistent work.

Financial Incentives

Installers benefit from payment for every job completed under the ECO4 Scheme. The financial incentives can be substantial, depending on the number of installations you carry out and the complexity of each project. These payments can provide a steady stream of income for your business.

Contribution to a Greener Future

ECO4 is a key part of the UK’s efforts to meet its net-zero carbon emissions target. By becoming an approved installer, you’re playing an important role in helping homes across the country become more energy-efficient, reducing overall carbon emissions and supporting a sustainable future.

Support and Training

Once you become an accredited ECO4 installer, you will have access to ongoing support and training. This ensures you stay up to date with the latest industry standards, regulatory changes, and best practices for energy-efficient installations.

5. Types of Installations Covered Under the ECO4 Scheme

The ECO4 Scheme covers a wide range of energy-saving improvements that installers can carry out:

  • Boiler Replacements: Replacing inefficient or broken boilers with modern, energy-efficient models.
  • Insulation: Installing or upgrading loft insulation, cavity wall insulation, and solid wall insulation to reduce heat loss.
  • Heating Systems: Installing low-carbon heating systems such as air source heat pumps.
  • Smart Heating Controls: Installing smart thermostats and heating controls that allow homeowners to manage their energy use more effectively.

These improvements not only help homeowners save on their energy bills but also improve the comfort and sustainability of their homes.

6. How to Stay Compliant with the ECO4 Scheme

To be successful as an ECO4 Installer, it’s essential to stay compliant with the scheme’s regulations and guidelines. Here are some key tips for staying compliant:

  • Ensure all installations are completed according to the technical standards outlined by the ECO4 Scheme and certification bodies.
  • Submit the necessary paperwork and evidence to the energy company for each job completed.
  • Keep up to date with any changes in the regulations or funding criteria for the ECO4 Scheme.
  • Maintain your certification and accreditation to ensure ongoing eligibility for participating in the scheme.

Conclusion

The ECO4 Scheme offers installers a unique opportunity to contribute to the UK’s energy efficiency efforts while expanding their business and earning financial rewards. By becoming an approved ECO4 Installer, you can help improve homes across the country, reduce carbon emissions, and ensure that families in need can access the benefits of energy-saving improvements.

If you’re ready to get started with the ECO4 Scheme and become an approved installer, visit ECO4 Energy Saving for more information and guidance.

February 11, 2025