Energy Company Obligation (ECO4)Scheme
Energy Company Obligation ECO4 Scheme is the latest phase of the ongoing government scheme to support low-income households by funding energy-efficient upgrades to homes, reducing carbon emissions, as well as electricity and energy bills. It requires that large energy companies (such as EDF, British Gas, Scottish Power etc.) pay to have energy-saving measures installed in people’s homes. ECO4 provides the opportunity to install solar photovoltaics (PV) in all electrically heated homes, as long as a biomass machine or District Heat Network has been ruled out. This government initiative aims to not only make homes warmer and household emissions lower but to make medium and larger energy companies more accountable for supporting low-income households.
Who is eligible for the Energy Company Obligation ECO4 Scheme?
- Homeowners, Landlords and Private tenants
- People receiving income-related benefits
- Properties with inefficient electric heating, within the D-G energy efficiency band.
Qualifying benefits for the Energy Company Obligation ECO4 Scheme include:
- Jobseekers Allowance (JSA) Income based
- Employment and Support Allowance (ESA), income related
- Housing Benefit
- Pension Credit
- Income Support (IS)
- Universal Credit (UC)
- Work Tax Credit (WTC)
- Warm House Discount Scheme Rebate
- Child Tax Credits
- Child Benefit, depending on income threshold
Here is the logo for the Energy Company Obligation ECO4 Scheme
Click on the link to find out more about the Energy Company Obligation ECO4 Scheme: Energy Company Obligation (ECO) | Stratford-on-Avon District Council
The LA Flex Scheme
If you are not receiving any benefits, you may still qualify for funding through the LA Flex Scheme. This is an extension of ECO4, created to tackle fuel poverty, which allows you to qualify for free funding that covers the costs of energy-saving measures, such as solar panels. Flex gives councils and local authorities the power to set the eligibility criteria in their area for the ECO4 scheme, meaning that more residents, on top of those receiving benefits, can qualify for funding.
Who is eligible for the scheme?
Although the criteria can vary between councils, LA Flex is generally targeted at two groups of people who are on low incomes:
- Those that are in fuel poverty (households spending at least 10% of their net income on heating their home.)
- Those who are more vulnerable and at risk during cold weather including:
- People with cardiovascular conditions
- People with respiratory conditions
- People with disabilities
- People with mental health conditions or learning disabilities that lowers the individual’s ability to look after themselves (including those with dementia)
- Older people (age 65 and over)
- Households with young children (0-5)
- Pregnant women
Click on the link to find out more: Energy Company Obligation (ECO) | Stratford-on-Avon District Council
Click on the link to find out more: Energy Company Obligation (ECO): Help to Heat scheme – flexible eligibility – GOV.UK (www.gov.uk)
The Green Deal Scheme
The Green Deal helps you make energy-saving improvements to your home through a loan which you’ll have to pay back. Any household with an electricity meter (including prepayment meters) can use the scheme, as long as both the landlord and the tenant agree to the improvements if the building is rented. You must get your property assessed by a qualified Green Deal assessor to use the Green Deal, who will visit your home and talk to you about your property and your energy use to help decide if you could benefit from Green Deal improvements, such as solar photovoltaic (PV) panels. You will then receive a Green Deal advice report which is valid for 10 years, or until you make changes or energy saving improvements to the property, for example you build an extension or change the windows.
A finance plan can then be offered to you by a Green Deal provider for improvements recommended in your Green Deal assessment, which will be based on what you’ll be expected to save on your energy bills. The annual repayments on the loan should therefore not be more than the savings you might make on your energy bills.
The loan differs to a usual loan, as it will be paid back through a charge added to your electricity bill. This is because the Green Deal stays with the property. If you decide to move, you no longer benefit from the improvements and therefore you stop paying for them.
Click on the link to find out more: Green Deal: energy saving for your home: Overview – GOV.UK (www.gov.uk)
The Green Deal Logo
The Smart Export Guarantee (SEG) Scheme
Instead of offering solar panel grants directly; the SEG scheme delivers a solution to reimburse your investment. The scheme requires energy suppliers with over 150,000 customers to pay homeowners for unused solar-generated electricity, feeding any unused electricity from your solar photovoltaic (PV) panels into the National Grid. Under SEG, you get paid for every unit of electricity that you give back to the grid.
Who is eligible for the scheme ?
- You must install a renewable electricity-generating system (such as solar panels)
- You will need a smart reader, since you’ll need to provide half-hourly export readings
- Your installation and installer should be certified through the Microgeneration Certification Scheme (MCS)
The Smart Export Logo
Click on the link to find out more : Smart Export Guarantee (SEG): earn money for exporting the renewable electricity you have generated – GOV.UK (www.gov.uk)
Pay 0% VAT “Energy-Saving Products” until March 2027
Rishi Sunak’s spring statement 2022, announced VAT on ‘energy-saving products’ to be set at 0%, a significant reduction from the previous rate of 5% and the typical charge of 20%. Eligible parties will be reliant on installers and suppliers to qualify for this reduction; the products cannot be bought or installed DIY.
If the cost of the products (not including VAT) is 60% or less of the total cost of the installation (not including VAT), you’ll pay 5% on everything. If the products cost more than 60% of the total cost of installation, homeowners will pay 5% VAT on the labour and the standard rate of 20% for the products.
0% VAT on Energy Storage Systems, including solar batteries. A significant step by the government to support the adoption of renewable energy technologies and enhance energy efficiency. By eliminating VAT, the government aims to make energy storage solutions more affordable for households and businesses.
Energy Storing
With the 0% VAT rate, upfront cost for installing the systems is significantly reduced. More financially accessible for individuals and organizations to invest in sustainable energy solutions.
This initiative aligns with the UK’s broader goals of reducing carbon emissions and achieving net-zero targets. By promoting the use of energy storage, the policy helps in stabilizing the grid, reducing reliance on fossil fuels, and enhancing energy security. This will stimulate economic growth by creating jobs in the renewable energy sector and driving innovation in energy storage technologies.
Overall, the introduction of 0% VAT on energy storage systems in February 2024 marks a pivotal move towards a greener and more sustainable energy future for the UK.
Click on the link to find out more about us: About – EleKtra Smart Energy
Click on our homepage: Home – EleKtra Smart Energy – Solar energy in Stratford upon Avon
