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What is The Energy Company Obligation (ECO)?

Reduced carbon emissions - lower heating billsReduced carbon emissions - lower heating bills

ECO is a government energy efficiency scheme for Great Britain replacing previous funding programmes, which came to a close at the end of 2012. ECO was introduced early 2013 and is expected to continue to 2015 and provides funding opportunities to qualifying people/properties for energy efficiency installations. 

ECO creates a legal obligation on larger energy suppliers to fund, or partially fund, improvements to the energy efficiency of households in respect of the following three principle targets.

  1. The Carbon Emissions Reduction Obligation target (CERO) focusing on hard-to-treat homes and, in particular, measures that cannot be fully funded through the Green Deal. Solid wall insulation and hard-to-treat cavity wall insulation are the primary measures that the Government intends to be promoted under this target. Other insulation measures and connections to district heating systems are also eligible if they are part of a package that includes solid wall insulation or hard-to-treat cavity wall insulation.
  2. The Carbon Saving Community Obligation target (CSCO) focuses on the provision of insulation measures and connections to district heating systems to domestic energy users that live within an area of low income. At least 15% of the target must be achieved in low income and vulnerable households located in rural areas.
  3. The Home Heating Cost Reduction Obligation target (HHCRO) covers measures that improve the ability of low income and vulnerable households (the ‘Affordable Warmth Group’) to affordably heat their homes, including the replacement or repair of a qualifying boiler.

What is the difference between the Green Deal and ECO?

Energy conserving measures installed under the Green Deal are generally paid for by the householder through the savings in energy bills. In contrast, under ECO, vulnerable and low income households, as well as those living in harder to treat properties where the expense of implementing these measures would not be recouped by the savings in energy bills (the Golden Rule), will receive full or partial financial support through ECO.

Refer to the below document for a list of potentially qualifying energy conserving measures which may be available to you under the ECO scheme.

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