ECO4 whole-house approach will reduce ‘gaming the system’
Elmhurst has published its response to the Energy Company Obligation (ECO4) Consultation (Part 2), released 13 December 2021. The consultation asked further questions on the scoring of ECO measures, and our response focused on the use of pre and post assessments proposed in the consultation.
It follows on from an earlier consultation published by the Department for Business Energy and Industrial Strategy (BEIS) in July 2021, which set out their intent for Ofgem to continue in its role as scheme administrator. Furthermore, BEIS intend that ECO4 will move to a whole-house approach based around multi-measure projects, which requires significant changes to the scoring methodology used in ECO3.
Elmhurst thinks this is an excellent opportunity for Retrofit professionals and DEAs to ensure the property owner or occupier has the best possible outcome and the whole-house approach is utilised to reduce “gaming of the system”.
The main points within the consultation (part 2) include:
- ECO4 will move to a whole-house, multi-measure approach, where full project scores (FPS) are awarded in respect of packages of measures installed in eligible premises where the relevant minimum requirement is met.
- Scores must be based on the difference in expected annual energy costs between the starting and finishing SAP rating of the premises
- BEIS also proposes a minimum requirement for the SAP band improvement achieved by premises treated under ECO4.
- “Band G and F premises should be improved to at least Band D,”
- “and band E and D premises should be improved to at least a band C”
- A deflator will be applied to partial project scores, which is anticipated to reduce partial project scores by 30 to 40%. This is intended to help maintain an incentive to meet the minimum requirement and obtain a full project score and whole building approach.
- Options for determining the finishing SAP rating at the end of the project, with the preferred option to obtain a post retrofit SAP/RdSAP assessment.
Read the consultation.
Read Elmhurst's response.