With the current phase of the Energy Company Obligation, ECO4, still going strong many wonder what the scheme’s future may bring in its next iteration. ECO5 would be the next step in the obligation scheme, but what would be included and who would be eligible? This article will discuss these questions and act as a window into the potential future of ECO.
What is the ECO5 Scheme?
- The next part of the Energy company’s obligation aims to improve energy efficiency and environmental sustainability.
- Each version changes to reduce carbon emissions and help the net zero goal of 2050 become a reality.
When would the ECO5 Scheme Begin?
As of now, the ECO5 scheme is set to start straight after ECO4 ends – 2026. The plan is for the fifth version to run until 2030 with the phase after that remaining uncertain.
What will be Included in ECO5?
The scheme will likely remain dedicated to technology that has made previous versions so successful. Air source heat pumps and solar panels will stay a part of what’s received, with the potential for battery storage to be included too.
The addition of batteries to the scheme would make it much easier for those households that are not getting the full benefit of the solar they already have. This tends to happen if the household does not spend a lot of time at home during the day.
Hybrid Heating Systems
A more prevalent approach to the promotion of adopting an air-source heat pump alongside a traditional gas or oiler boiler could also be a significant aspect of ECO5.
This partnership is known as a hybrid heating system where the marriage of the new technology and the traditional one takes place. With this system, the heat pump runs as a property with the boiler kicking in when it’s most needed.
Will the Eligibility Criteria for ECO5 Change?
- Eligible Household Expansion: ECO4 was mainly focused on the vulnerability of low-income households across the country. ECO5 may see the scheme expanded for the inclusion of middle-income households.
- Geographical Factors: The volume of diversity across the country’s geographical regions could show that ECO5 has a greater tolerance for regional factors. For example, if a resident living in a colder region requires more energy for heating their home, they could be prioritised.
- Additional Energy Saving Tactics: The extension of available energy efficiency measures could occur. The potential for digital thermostats and other home energy management devices could be added.
- Carbon Footprints: A household carbon footprint measurement could be put among the eligibility criteria. Homes with larger footprints could be targeted first and would significantly impact the reduction of carbon emissions.
- Private Landlords and Tenants: Landlords and private tenants could see themselves as a part of the eligibility criteria, improving the energy efficiency of rented properties, a sector usually forgotten about.
What is the future of the Energy Company Obligation?
All speculation that surrounds ECO5 remains to be seen. It is somewhat evident that the focus will remain on the prioritisation of reducing carbon emissions and the fight against fuel poverty.
It is a thrilling time in the UK for energy efficiency and there are a lot of opportunities for ECO5 to excel in and improve on the successes of ECO4.
Comments
I’m reading this potential for eco 5 scheme, but at the moment with the pause on eco 4 funding I’m finding it hard to believe there’ll be many companies left being able to undertake the works as if the scheme doesn’t act soon there be many of them disappearing. Even in the private sector of renewable energy the government needs to take a stand in which way we need to head as a country, the consumer can’t confidently put there money into an ashp or a boiler then there’s talk of hydrogen??
What a joke the scheme is not worth the paper it is written on
I live in a house with solid walls and have applied to dozens of companies and all they say is there is no funding to do external wall insulation so why are these companies still allowed to advertise what a load of
S—t
Hi John,
Thank you for contacting us and leaving a comment.
I’m sorry to hear that you have found the current lack of available external wall insulation funding frustrating. Due to regular changes in Local Authority funding criteria, installers are only able to install on properties they are able to access funding for. Unfortunately, these changes are beyond our control. However, due to these constant criteria changes, funding for this type of insulation may become available in the future. Please keep checking our website for updates.
The Energy Advice Helpline team
Why are they so obsessed with only a set number of measures, a one-size-fits all. Each home should be looked at on an individual basis. For example, my windows and doors are over 50 years old and are falling apart, with water, mold, and wind making some rooms uninhabitable. The heat just escapes through the windows and doors. But they would rather waist the money on solar panels that I don’t need or on a boiler that is already in good working order. If I say the right words, they would have no problem replacing my boiler even though there’s nothing wrong with it but not for measures you would actually need.
Hear we go again just applied for the warm home grant that came out on the 1/4 /2025 for energy performance measures and low carbon heat measures £15,000 for each application only to find out Rotherham council labour run May I add have not applied for any funding and they say labour is for the working class what a load of bull