The Future of ECO: ECO5 Scheme
All of the information you need to know about the ECO5 scheme discussing what could be included and how eligibility could change.
What is the ECO5 Scheme?
In the UK, the next phase of the Energy Company Obligation is likely to focus on more advanced energy efficiency and environmental sustainability.
With every version of the ECO Scheme, changes have been made to ensure the evolution of the scheme. Aspects such as the reduction of carbon emissions and providing help in the UK’s government’s chase for the Net Zero goal in 2050.
The goal of the scheme is to reduce the amount of collective energy the country is using all the while increasing the implementation of renewable energy sources like solar panels and air source heat pumps in properties.
ECO5 Timeline and Introduction
The current phase of ECO is set to end in 2026, with plans to have ECO5 begin running straight after. It will most likely run until 2030.
What you can find on this page
ECO1
The first phase targeted obligations for 3 main areas; Carbon Emissions Reduction Obligation (CERO), The Carbon Saving Community Obligation (CSCO) and the Home Heating Cost Reduction Obligation (HHCRO).
ECO2
The second phase built on the previous success and has an extension period known as ECO2T.
ECO3
The third phase shifted from multiple obligations under previous phases to a single obligation. The Home Heating Cost Reduction Obligation (HHCRO) meant that suppliers had to promote energy measures for the homes that could not afford to heat their homes. An extension period known as ECO3T also took place.
ECO4 - Now
The fourth instalment is currently running and is designed to target a different part of households, unlike the previous versions. This version also has different eligibility criteria compared to ECO3. Local Authority Eligibility Flexibility (LA Flex) was introduced. This gave local councils the authority to expand the local criteria for the scheme.
ECO5 - Future
The fifth version of ECO promises of lot of potential for expansion in energy technologies and eligibility criteria. Although right now, we can only speculate what the scheme could bring in the future.
Net Zero
The ultimate goal of all this is to reach the countries net zero goal where emissions will be fully reduced and energy bills will be more manageable than ever!
What Could the ECO5 Scheme Include for those Eligible?
- Solar Panels
- Insulation
- Air Source Heat Pumps
- Battery Storage
- Hybrid Heating Systems
The scheme may remain dedicated to technologies like air source heat pumps and solar panels with the possible addition of battery storage to this version of ECO.
This would make the lives easier for so many – including those who do not get the full benefit of their solar due to not being at home all day.
The idea of adopting an air-source heat pump alongside a traditional boiler (hybrid heating system) may be more visibly promoted to ease the idea of introducing a new technology to the home.
The current phase of ECO is set to end in 2026, with plans to have ECO5 begin running straight after. It will most likely run until 2030.
Who is Eligible for the ECO5 Scheme?
The criteria for the ECO4 scheme are set by the central UK Government and will change the criteria accordingly to reach Net Zero.
The ECO Scheme is means-tested, aimed at targeting the most vulnerable households in the UK with the least energy-efficient properties.
Below are the possible ways in which the scheme could be extended:
Expansion of the number of eligible households
vulnerable and low-income households were the main focus of the ECO4 scheme and the ECO5 iteration could see the expansion to middle-income households or those just above the current threshold but still face dire energy costs. This would open up ECO to a bigger population, allowing for more promotion of energy efficiency.
Adjustments according to geographical factors
with the diversity of the geographical regions of the country, ECO5 could give greater chances to regional factors in deciding eligibility. For example, a resident in a colder region, like North Scotland, may require more energy to heat their home and therefore can be prioritised.
Inclusion of additional measures to save energy
ECO5 could potentially expand the number of eligible energy-efficient measures. This could include installing digital thermostats or other home energy management devices. This would allow more homes to have more options and allow the scheme to keep up with any advances in energy efficiency.
Households Carbon Footprint & Eligibility
The race for Net-Zero could mean that ECO5 may consider the carbon footprint of a household amongst the eligibility criteria.
This would mean that homes with a larger carbon footprint would be a priority for the scheme and would also have a bigger impact in the reduction of emissions.
This would mark a new era for the scheme, as it would indicate a transition towards a comprehensive approach towards dealing with climate change.
ECO5 for Private Landlords and Tenants
The current ECO4 focuses on homeowners but ECO5 may increase eligibility to private landlords and tenants which would allow the energy efficiency of rented properties to be improved, an area usually neglected by these energy initiatives.
All Inclusive ECO5
ECO5 will still have to deliver on an aim to address fuel poverty and the ever-impending climate change holistically. Regardless of eligibility changes, the main goal should still surround establishing long-lasting changes in energy consumption habits.
The scheme also needs to retain a significant level of accessibility. If the eligibility list became too complex, the scales could tip, discouraging those who require the most assistance from ever considering the scheme. A perfect balance must be established for the best impact.
The Future of ECO
The current energy-efficient climate in the UK offers numerous exciting opportunities for the upcoming ECO5 with the impact on households and the nation’s carbon footprint being quite significant.
Until the official ECO5 guidelines are announced, we can speculate and hope that the pattern of expansion for access to energy-efficient technologies, combating fuel poverty, and moving one step closer to Net-Zero is continued.
For the current ECO4 scheme, use the form below to apply.
No matter the outcome of ECO5, the scheme will be a huge step in the right direction for the energy-efficient future of the UK.
Read our blogs on ECO4 grants
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