The Energy Company Obligation scheme

What is the ECO scheme?

The ECO Plan is a government-backed programme that requires large energy companies to pay for home upgrades for low-income and vulnerable families. Its goal is to make homes warmer, use less energy, and release less carbon dioxide.

Introduction

Many homes in the UK are having a difficult time staying warm and comfortable since energy prices are going up. The government established the Energy Company Obligation (ECO) programme to combat fuel poverty and reduce carbon emissions. This programme offers financial support for energy-efficient home enhancements like new boilers, insulation, and heating upgrades.

History

In 2013, the ECO plan replaced older programmes that aimed to make homes more energy efficient. It has been through a number of stages since then:

ECO1 (2013–2015)

It was all about cutting down on carbon emissions.

ECO2 (2015–2017)

It was extended to aid more families with low incomes.

ECO3 (2018–2022)

It focused on homes that couldn’t afford gasoline and had stricter standards for who may obtain help.

ECO4 (2022–2026)

It is the current phase. It focuses on retrofitting full houses, using renewable heating, and properties with low EPC ratings (D–G).

ECO has helped millions of houses use less energy over the years, which is in line with the UK’s aim of attaining net zero by 2050.

 How does it work?

The strategy works because it makes big energy firms legally responsible. These vendors don’t pay the government directly; instead, they pay for residential energy upgrades. Your supplier will pay for all or part of the cost of modifications like insulation or heating, provided you meet certain requirements.

To put it simply:

• The government establishes targets for energy consumption.
• Energy suppliers will pay for home improvements that meet certain criteria.
• Families save money on their bills and have warmer homes.

Who funds the ECO scheme?

Major UK energy companies, like British Gas, EDF, E. ON, and others, pay for the plan. It is against the law for these corporations not to put money into making homes more energy efficient.

What improvements are covered under the ECO scheme?

• Boiler replacement or new boilers
• First-time central heating grant
• Loft insulation
• Cavity wall insulation
• Solid wall insulation
• Renewable solutions like heat pumps

Who qualifies for the ECO scheme grant?

You may qualify if you are receiving any of the following benefits:

• Child Tax Credits
• Child Benefits
• Housing Benefit (NEW)
• Income-based Jobseeker’s Allowance
• Income-based Employment & Support Allowance
• Pension Credit Guarantee Credits
• Pension Credit Saving Credits (NEW)
• Universal Credit
• Income Support
• Warm Home Discount
• Working Tax Credits

Benefits of the ECO scheme

• Reduce electricity bills
• Reduce carbon emissions
• Improve the EPC rating
• Environmentally friendly
• Support financially
• Reduce fuel poverty
• Enhance property value
• Warm and cozy home

How to apply for the ECO scheme?

• First check your eligibility for the ECO scheme grant, if you qualify then, apply online.
• Give all your details in the short application process and book an appointment.
• Once you complete the appointment, you can proceed with the survey.
• Our team will survey your property, and if approved, then you will get the installment date.
• Engineers will install the system within 7 days.

Common myths about the ECO scheme

• “It’s only for homeowners” (tenants and landlords can also apply).
• “It’s too much hassle” (The process is straightforward and handled by installers).
• “It’s not free” (If eligible, costs are fully covered by energy suppliers).

FAQs