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The ECO4 (Energy Company Obligation) and GBIS (Green Building Investment Scheme) are pivotal schemes designed to support the delivery of energy-efficient retrofits for households across Great Britain.
These initiatives aim to make homes more energy-efficient, reduce carbon emissions, and provide consumers with a more affordable and sustainable living environment.
In recent consultations and discussions, various mid-scheme changes and updates have been proposed to streamline processes, improve efficiency, and enhance consumer benefits.
This blog explores these significant changes to the current requirements of the ECO4 and GBIS, focusing on their impact on installation standards, certifications, guarantees, smart meters, solar PV batteries, and more.
The goal is to provide a comprehensive understanding of how these updates will shape the future of energy-efficient retrofits and what consumers and industry stakeholders can expect.
1. Key Updates in Installation Standards for ECO4 and GBIS
Transition to PAS 2035/2030:2023
One of the most significant changes that is taking place involves the PAS 2035/2030 standards, which set the framework for delivering energy-efficient retrofits. The transition from PAS 2035/2030:2019 to PAS 2035/2030:2023 is a critical step in ensuring that retrofitting projects are carried out to the highest standards.
- The transition period between the 2019 and 2023 versions ends on 30 March 2025, after which all references to the older version in legislation will be updated to the new standard.
- The new PAS 2035/2030:2023 will involve changes in compliance costs and the required processes for retrofit assessments, measure designs, and coordination with TrustMark.
- ECO4 and GBIS participants will need to adapt to these updated standards to maintain compliance and achieve optimal outcomes.
These changes are expected to impact both the ECO4 and GBIS schemes in terms of costs and administrative processes, with £1,030 per property retrofit being the estimated compliance cost for 2023 (based on earlier consultations).
Updates to PAS 2035/2030 References in Legislation
To ensure continuity in the application of these standards, government amendments will replace references to PAS 2035/2030:2019 with PAS 2035/2030:2023 in relevant ECO and GBIS legislation. This update is essential for streamlining compliance across the board and ensuring that new regulations are fully integrated into the operation of these schemes.
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Transition from PAS 2035/2030:2019 to PAS 2035/2030:2023
| Aspect | PAS 2035/2030:2019 | PAS 2035/2030:2023 | Change/Impact |
|---|---|---|---|
| Effective Period | In use until March 30, 2025 | Active after March 30, 2025 | Transition deadline set for full adoption of updated standard |
| Compliance Cost | Approx. £944 per property | Approx. £1,030 per property | Slight increase due to enhanced requirements |
| Retrofit Assessment | Based on older assessment protocols | Improved risk assessment and quality | Better identification of property needs |
| Design & Coordination | TrustMark standards, less clarity | Stronger emphasis on design, roles | Clearer responsibilities and workflows |
| Applicable Schemes | ECO4, GBIS | ECO4, GBIS | Legislation references to be officially updated |
2. Smart Meter Requirements: Enhancing Energy Efficiency Through Technology
Smart meters have become an integral part of the effort to modernize the UK’s energy system. They provide consumers with real-time data on their energy consumption, enabling them to make more informed decisions about their energy usage and ultimately save on bills.
Smart meters are a crucial component of both the ECO4 and GBIS schemes, and there have been several updates regarding their implementation.
Benefits of Smart Meters for ECO4 and GBIS Consumers
Smart meters offer significant benefits, especially when integrated into energy-efficiency projects like those under ECO4 and GBIS:
- Real-time consumption data: Consumers can track their energy use in near real-time, which helps them understand the impact of any energy-saving measures installed, such as insulation or heating upgrades.
- In-Home Displays: These devices show the consumer’s energy use and cost in real-time, helping to manage usage and set budgets to avoid exceeding custom-set levels.
- Energy flexibility: Smart meters enable homes to participate in smart energy tariffs, where they can adjust their energy usage away from peak periods and receive incentives for doing so.
Smart Meter Integration – Consumer Benefits
| Smart Meter Feature | Benefit to Consumer | Relevance to ECO4/GBIS |
|---|---|---|
| In-Home Display (IHD) | Real-time visibility of energy usage and cost | Helps consumers adjust consumption post-retrofit |
| Real-Time Data Feedback | Immediate insights into usage behavior | Enables behavior change to enhance retrofit savings |
| Budgeting Tools | Alerts for exceeding usage budgets | Helps manage energy bills, especially for low-income households |
| Smart Tariffs Compatibility | Access to flexible time-of-use tariffs | Promotes load shifting and peak demand reduction |
| Remote Meter Readings | No need for manual readings | Reduces admin burden and ensures accurate billing |
Proposed Changes to Smart Meter Installation
While the integration of smart meters into these schemes has been beneficial, there are challenges related to the logistics and timing of smart meter installations. Due to factors like data privacy and concerns about delays, there has been resistance to requiring that a smart meter installation is completed before consumers can access retrofitting benefits.
However, two options are proposed to encourage more widespread adoption of smart meters within the ECO4 and GBIS schemes:
- Option 1: Consumers would be encouraged to contact their energy supplier to request a smart meter installation.
- Option 2: Consumers agree to be contacted by their energy supplier for a smart meter installation as a prerequisite for accessing retrofitting services.
3. Solar PV Batteries: Enhancing Household Energy Efficiency
The inclusion of solar photovoltaic (PV) batteries in the ECO4 retrofitting projects has been a topic of significant discussion. While solar PV systems are widely recognized as an effective energy-efficient measure, solar PV batteries face some challenges within the current assessment framework.
Solar PV Battery Integration with RdSAP10
The key issue is that solar PV batteries are not recognized within RdSAP2012, meaning that their installation will not contribute to improving the home’s SAP score.
This means that under the existing framework, solar PV batteries may not be an economically viable option for many households participating in the ECO4 scheme.
However, despite not increasing the SAP score, households can still benefit from reduced heating costs through the use of solar PV batteries, especially if they are willing to self-fund or contribute to the cost of the installation.
Potential Changes to Solar PV Battery Policies
As part of ongoing discussions, there are suggestions to remove the existing limitations and allow for more flexible solar PV battery installations under ECO4.
These changes could lead to more cost-effective solutions and better energy management for participating households, even if the installation does not directly contribute to the ECO4 score.
Solar PV Battery - Policy and Technical Summary
| Parameter | Current Status | Impact |
|---|---|---|
| Recognized in RdSAP2012 | ❌ Not recognized | No SAP score improvement |
| Recognized in RdSAP10 Specification | ✅ Recognized, but no tariff differentiation | Still no ECO4 score improvement due to SAP methodology |
| Can Improve Home Efficiency | ✅ Yes | Reduces reliance on grid electricity during peak hours |
| ECO4 Score Impact | ❌ No | Not cost-effective under current scoring system |
| Self-Funded Installation Option | ✅ Allowed | Household can choose to co-fund or fully fund the battery installation |
| Future Prospects | 🔄 Under Review | Policy changes may integrate PV batteries more formally in future schemes |
4. Minor Policy Amendments in ECO4 and GBIS
Shared Ground Loops (SGLs) Adjustment
One of the more specific updates under ECO4 involves Shared Ground Loops (SGLs). Previously, SGLs were treated differently from other District Heating Connections (DHCs), requiring evidence through RdSAP assessments.
However, feedback from industry stakeholders indicated that this method undervalued the improvements made by installing SGLs.
To address this, the proposal suggests that SGLs should be treated similarly to other DHCs. This would allow for evidence to be provided through SAP assessments, making it easier to deliver SGLs as part of ECO4 retrofitting projects.
This update would help increase the deliverability of SGLs and align them with other energy-efficient measures.
5. Low Carbon Heating and Microgeneration Installations
In addition to solar PV systems, the integration of low carbon heating and microgeneration installations is another key focus of the ECO4 and GBIS schemes. These technologies are essential for helping households reduce their carbon emissions and reliance on fossil fuels.
Currently, installations of low-carbon heating systems and microgeneration technologies require certification through the Microgeneration Certification Scheme (MCS) or an equivalent standard.
These certifications ensure that installations meet consistent quality standards and align with broader government goals for carbon reduction.
Aligning Certification Requirements
The government has proposed aligning ECO4 and GBIS certification requirements with those of other government schemes that promote low-carbon heating and microgeneration.
This alignment will help streamline the certification process, ensuring that all installations are up to standard and support the transition to a greener energy future.
Conclusion
The proposed updates to the ECO4 and GBIS schemes reflect a strong commitment to improving the energy efficiency of homes across Great Britain while ensuring consumer protection and environmental sustainability.
From updates to PAS 2035/2030 standards and smart meter requirements to changes in the way solar PV batteries and Shared Ground Loops are treated, these changes aim to increase the efficiency and effectiveness of retrofitting measures.
As we approach the transition period to the PAS 2035/2030:2023 standards and the full implementation of smart meter and solar PV battery policies, it is clear that the future of retrofitting projects in the UK will be increasingly data-driven, flexible, and consumer-focused.
For both ECO4 and GBIS, these changes are set to make energy-saving solutions more accessible, cost-effective, and impactful, ensuring that Great Britain continues on its path to achieving net-zero emissions
