What is ECO?

ECO energy efficient homeECO stands for Energy Company Obligation. ECO works alongside the government’s Green Deal to help households across the UK make energy-efficiency improvements to their home. Under the ECO scheme the big energy suppliers are legally obliged to help the following households with energy-efficiency measures:

  • Low income and vulnerable households
  • Homes that may not benefit from savings from the Green Deal
  • Homes in low income areas

ECO is the government’s umbrella term for its programme to make houses in the UK more energy efficient, it covers the home heating cost reduction obligation (often refered to as the affordable warmth obligation), the carbon saving obligation and the carbon saving communities obligation. The scheme replaced Carbon Emission Reduction Target (Cert) and Community Energy Saving Programme (CESP) that ended in December 2012.

ECO is a fund which is set aside each year to provide funding for energy improvements to the housing stock in the UK in particular with the aim of tackling fuel poverty.

Unlike Green Deal finance, all ECO funds are non-repayable grants.

As part of ECO, the government estimates that £1.3 billion per year worth of energy efficiency and heating measures will be delivered across Great Britain.

ECO funding may be available to subsidise your Green Deal. ECO funding is available for relatively expensive energy-efficient measures where the savings on your electricity bill may not be greater than the cost of the installation. For instance, solid wall insulation, internal wall insulation and ‘hard to treat’ cavity wall insulation are all eligible for extra ECO money to pay for its installation as part of the Green Deal.

More information about ECO and who is eligible for ECO funding can be found by contacting ourselves through the contact form or for impartial advice please contact the Energy Saving Trust Scotland for more details.

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