Changes to energy efficiency funding: What landlords need to know
Rules around how energy efficiency funding can be used have been tweaked by the Government, following a public consultation.
The announcement affects two different funding pots; Energy Company Obligation 4 (ECO4) and The Great British Insulation Scheme (GBIS) both of which offer government-backed support to help landlords upgrade the energy efficiency of their properties.
What do the schemes offer?
Energy Company Obligation 4 (ECO4) offers grants for low-income and vulnerable households, potentially including heating and ventilation improvements alongside insulation
The Great British Insulation Scheme (GBIS) which targets households in lower council tax bands and provides basic insulation measures that can make a noticeable difference to energy performance and running costs.
What is changing?
Support for dual measures and smart thermostats
The Government will now allow any two low-cost measures to be installed in combination – for example loft and cavity wall insulation, with the installation of smart meters not included as an eligible measure under GBIS.
Innovation measures and smart meter engagement
The Government also confirmed that both ECO4 and GBIS will build upon existing smart meter advice requirements. A new voluntary pledge will be introduced, enabling householders to opt in and commit to arranging a smart meter installation with their energy supplier.
However, the Government decided not to run a Pay-for-Performance (PFP) pilot, which would have rewarded actual energy efficiency improvements in homes using smart meter data.
It has also abandoned plans to introduce a new quality standard alongside the existing TrustMark requirements, claiming it would be too confusing.
Instead, the Government has confirmed it will adjust legislation to clarify Ofgem’s role in rejecting measures that fail to comply with TrustMark requirements.
What does it all mean?
While these are not major changes, accessing funding from either scheme could help you stay ahead of the curve when it comes to the new Minimum Energy Efficiency Standards set to be introduced in the coming years - particularly if your properties can be brought up to EPC C now.
More information
You can find out how to access these schemes here.
For more information about energy efficiency, visit our page here.
If you’re interested in retrofitting your home, take a look at our partners here.
