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Solar panels haven’t always been the most accessible to people on lower incomes, even with them now costing around 70% lower than previous years. But what if we told you that there was a way for low-income households to also benefit from solar energy… free of charge!
What is the ECO4 Scheme?
The ECO4 (Energy Company Obligation 4) is part 4 of a government energy efficiency scheme that provides solar energy solutions for low-income households. It is part of the government’s goal to increase energy efficiency, while reducing carbon emissions and fuel poverty in the UK. The scheme uses large energy suppliers like British Gas, Eon, and Shell, to fund the installation of these efficiency measures, and each supplier has a target number of homes which is based on its share in the energy market.
Under the scheme, eligible households can be provided with things like solar photovoltaic (PV) systems, insulation, and central heating, all for free. The ECO was originally launched in 2013, and in April 2022, the 4th iteration of the scheme was launched, and is set to last until 2026. Since its inception, almost 2.5 million homes have benefitted from it, with just over 3 million energy saving measures being installed.
What does the ECO4 cover?
The ECO4 doesn’t just cover solar panels, but a range of efficient solutions to aid low-income families with the rising cost of energy. The ECO4 covers:
• Insulation
• Repairing boilers
• PV Solar panels
• Installing greener heating systems
• District heating systems and heating controls
There are certain eligibility criteria that you have to meet in order to get access to each of these things, and you could be eligible for a larger range of solutions depending on the energy supplier that you choose to go with.
How do I know if I’m eligible?
The scheme is only open to households that are low income, and are in receipt of benefits. In order to qualify for Solar Panels under the scheme, the following criteria needs to be met:
• Your EPC needs to be below a D rating
• Live in your own home or be renting privately
• Live in an all-electric house
• Receiving government benefits such as JSA or child benefits
It is also possible to be referred to energy suppliers by your local authority, or by the energy suppliers themselves, in order to receive support from the scheme. This is the case if you have been in continuous fuel debt and are finding it hard to keep your energy on due to financial problems.
Reduce your energy bills
Under the past ECO schemes, there had to be a ‘primary measure’ for them to then qualify for any heating replacement. The primary measure at the time was wall insulation, and it meant that if you applied for the grant, then you could benefit from both wall insulation and a heating replacement (e.g., a boiler). However, this meant that only certain parts of the home would be made more energy efficient. For ECO4, the approach has been overhauled, and now the entire property is taken in to account.
As homeowners, you are entitled to request whatever improvement you want under the scheme, but other measures may have to be included if the one measure you opt for doesn’t raise your EPC by enough. However, this is actually beneficial to the homeowner, because you may end up with extra systems installed for free under the grant.
For example, if you only wanted solar panels but they didn’t raise your EPC enough by themselves, you could also be offered things like loft insulation, or a heat pump, in order to bump up your house’s rating. All of these things can then work together to help you save extra money on your energy bills, and you didn’t have to pay for a single one of them! Assuming your new solar panels qualify, you will then also be able to claim money back from the SEG (Smart Export Guarantee), where you can export any unused electricity back to the grid for some extra cash.
How can you apply for the ECO4 scheme?
Applying to the ECO4 is really simple. First you need to find an energy supplier that is participating in the scheme, some examples include, but are not limited to:
• British gas
• Eon
• EDF
• Octopus
• Ovo
• Shell
• Utilita
After you’ve got in contact with your preferred energy supplier, they will perform an assessment of your home. This is usually done over the phone, and they will ask you various questions about your home, like its EPC rating, and they will also check what benefits the household is receiving, as well as the gross income. Then, an installer will be sent to your property, to properly check if your house is in need of new energy efficiency solutions, is eligible for ECO4, and what solution would work best.
Final thoughts
Thanks to schemes like the ECO4, getting your home powered by solar energy is far more accessible than in previous years. Not only can low-income families benefit from free solar PV systems to help with their energy bills, but they can also make use of the SEG scheme to give them even bigger savings at a time when it’s most needed. Households may also be lucky enough to qualify for other energy saving measures for their home under the scheme, like insulation, helping them to save even more.
It’s important to make sure that you choose a good energy supplier to go ahead with the installation, and that the solar panels they are offering are suitable for your house, but in reality, this scheme is a win-win for those who are in low-income households.