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ECO4 Scheme and Great British Insulation Scheme: Mid-Scheme Changes
- From: Kevin Smith
- Published 21 November 2024
The UK government’s Energy Company Obligation (ECO) and Great British Insulation Scheme (GBIS) are the major instruments in overcoming fuel poverty and improving energy performance in homes. Schemes for consultation post-ECO4 include GBIS which form the latest phase of implementation Mid-scheme consultations have brought forward these changes formulation that seeks to enhance the prospect of implementation along with a reduction in costs.
In this blog it is involved to examine the consultative proposals, effects they could generate and relationship with aims of such plans.
Key Mid-Scheme Changes
Expanded Measures for GBIS Projects
- Proposal: permit the Loft Insulation (LI) and Cavity Wall Insulation (CWI) to be done in the same project.
Reason:
- The costs for surveys and compliance are high and cannot be rented so single measures are not an attractive proposition to installers.
- Integrated approaches make the measures more effective and cost efficient and enhance the attractiveness of the schemes.
Impact:
- Promotes efficiency in that several installations can be carried out in the course of one visit.
- Reduction in scale of households impacting but boosts overall fulfillment of the particular scheme.
- Receive more participation by installers, help increasing the supply chain.
Inclusion of Smart Thermostats
Proposal: Allow smart thermostats as the second measure in the low-income households under GBIS.
Reason:
- A smart thermostat is an inexpensive technology that optimizes home heating and grants individuals enhanced energy management influence.
Impact:
- Helps the householders gain cheaper ways to upgrade for efficiency of energy usage.
- It also promotes supplier’s involvement due to its low costing and high effectiveness.
- Improves service deliverability for the benefit of low-income individuals while at the same minimizing wastage of energy.
ECO4 Projects Counting Towards GBIS Obligations
Proposal: Provide eligibility for obligated suppliers to apply categories of ECO4 compliant projects toward GBIS targets, to specific percentage.
Reason:
- The analysis shows that delivery cost of GBIS is relatively high in contrast to costs incurred by ECO4. Using of ECO4 resources enhances the efficiency of delivery of GBIS.
Impact:
- Satisfies the GBIS requirements using the capacity of ECO4.
- Stresses the need to assist low income, fuel poor households.
- Introduces a conversion factor (e.g., £1 spent on ECO4 is considered to contribute towards £1.30 towards GBIS).
Flexible Timing for Implementation
Options:
- From the consultation date up to the next subsequent full year after the publication of notification as aforesaid.
- From the date of publication of the Government response.
- This also applies with effect from the commencement date of the new legislation.
Preferred Option: Being a consultation activity, its implementation should be made immediate in order to have positive impact on suppliers and the households as soon as possible.
Impact:
- Fosters advancement in attaining energy saving targets.
- This minimizes cost of compliance and slows down the business activities.
Get Your Home Insulated For Free
If you or any of your household is on benefits, you may be eligible for ECO4 or GBIS.
Shared Ground Loops (SGLs)
Current State:
- In and of themselves SGLs which are a species of District Heating Connections (DHCs) are treated differently and involve RdSAP assessments that downplay the strengths.
Proposed Changes:
- Disregard SGLs as other DHCs with the utilization of SAP evaluations either for stand-alone or retrofit arrangements.
- Introduction to SAP assessments of retrofit measures in the case of insulation and DHCs.
Impact:
- Reduces the SGL project’s complexity to related deliverability.
- Expands SGLs’ link with other scheme measures to improve use.
Smart Meter Uptake
Current Situation: Consumers need to be offered advice on smart meters before they are fitted, but retrofit is not compulsory.
Proposed Options: Customers guarantee they shall call their energy supplier for a smart meter without being forced to.
Customers also consent to suppliers communicating with them on installation arrangements, either willingly or pursuant to the scheme access provisions.
Impact:
Increases people understanding of energy efficiency needs.
Enhances evaluation of savings after retrofit.
Challenges:
Myrtles could require smart meter roll out but doing so could reduce response rates and pose privacy risks.
Solar PV Batteries
Current Issue:
- At the present state, the batteries of solar PV are not part of the current RdSAP2012 conventional model and consequently do not contribute to the scoring of the ECO4.
Proposed Changes:
- What should be done is to add PV batteries to ECO4 for the households willing to co-finance or fully finance the batteries.
Impact:
- Promotes use of solar PV batteries to use less energy from the grid.
- Provides overall saving solutions to households; thus, improving on scheme attractiveness.
Rural Area Definition
Current Framework:
- Being based on the outdated data sets of 2013 and 2018, the classification of rural areas is concerned.
Proposed Transitional Arrangements:
- Option A: Make the transition based on the result of the spot assessment before the retrofitting exercise was conducted.
- Option B: It is therefore necessary to base the transition on project completion and a notification to Ofgem of the same.
Impact:
- The definitions are brought up to date to reflect latest census, to avoid any bias towards rural areas.
- Transitional arrangements help reduce interferences that might be experienced with existing working projects.
Buy-Out Mechanism
Context:
The buy-out mechanism, proposed to lower thresholds for small suppliers in ECO, has been shelved due to market changes and the exit of smaller suppliers.
Conclusion:
No buy-out mechanism will be introduced for ECO4 or GBIS, though it could be reconsidered in future schemes.
Key Changes in ECO4 and GBIS
| Aspect | ECO4 | GBIS |
| Expanded Measures | Focus remains on individual retrofits. | Allows combining Loft Insulation and Cavity Wall Insulation. |
| Smart Thermostats | Covered as part of overall retrofits. | Included as a secondary measure for low-income households. |
| Shared Ground Loops (SGLs) | Requires RdSAP assessments. | Treated like District Heating Connections (DHCs). |
| Solar PV Batteries | Being explored for inclusion. | Not applicable yet. |
| Rural Definition Updates | Based on older datasets. | Transition to updated definitions ongoing. |
| ECO4 Counting Towards GBIS | ECO4 projects support GBIS obligations. | ECO4 projects can count towards GBIS targets. |
Broader Implications
Enhanced Efficiency and Participation
- The amendments also decrease bureaucracy, eliminate duplication of work, and improve scheme availability. For instance, synchronizing ECO4 with GBIS solves delivery issues and guarantees the distribution of resources wherever it is most valuable.
Alignment with Net-Zero Goals
- With regard to fuel poverty alleviation and energy efficiency, the schemes are consistent with the former’s 2030 EPC Band C target and the latter’s 2050 net-zero emission target.
Challenges to Address
- Awareness: Some of these eligible candidates have little knowledge of such schemes.
- Privacy Concerns: Some participants will be reluctant to participate in the survey because smart meters are already compulsory.
- Administrative Hurdles: But where implementation is required on the immediate, it does warrant close attention.
Conclusion
Such modifications as in the middle of the scheme are switching to ECO4 and Great British Insulation Scheme (GBIS) show that the UK government is quite interested in improving the efficiency of energy use, not to mention fuel poverty. These proposals improve the chances of the schemes being delivered, widen their accessibility, and bring them into line with changing targets for improving energy efficiency.
These updates open up possibilities for even greater, inclusive engagement by households, energy suppliers, and their stakeholders in the creation of the necessary energy future.
