The Department for Business, Energy & Industrial Strategy (BEIS) has just released their proposal for ECO4 which will replace ECO3 and will run from April 2022 until March 2026 at an average value of £1 billion per year.

The main objective of the scheme is to improve as many fuel poor homes as reasonably practicable to EPC band C by 2030, with an interim milestone of band D by 2025. This will help to reduce emissions and will contribute towards the country’s net zero agenda. Some of the proposals outlined within the ‘Energy Company Obligation ECO4: 2022 – 2026’ document include:

• continuing to target low income and vulnerable, and fuel poor households
• giving greater support and deeper retrofit for the least energy efficient homes, requiring homes to meet new minimum energy efficiency requirements
• continuing to mandate compliance with the fabric-first approach set out in PAS 2035
• changing the proportion of the scheme that can be delivered through local authority referrals, and by suppliers
• explaining how ECO interacts with other grant funding
• seeking views on a future supplier buy-out mechanism to enable small suppliers to participate in ECO, subject to primary legislation

BEIS are particularly interesting in receving feedback from;

• energy suppliers
• energy efficiency installers
• energy efficiency measure manufacturers and associated software developers
• local authorities
• consumer groups
• academic groups

Elmhurst welcomes the release of the consultation and, despite the tight timescales, will seek the input from Elmhurst members before submitting a full and considered response.

Link to consultation: https://www.gov.uk/government/consultations/design-of-the-energy-company-obligation-eco4-2022-2026.

Response deadline: 31 August 2021