Energy Company Obligation (ECO)

Energy Company Obligation (ECO)

The Energy Company Obligation (ECO) is a government energy efficiency scheme in Great Britain to help reduce carbon emissions and tackle fuel poverty. You can find out more here about how the scheme effects consumers, suppliers, installers and industry

How ECO works

Under ECO, medium and larger energy suppliers fund the installation of energy efficiency measures in British households.

Each obligated supplier has an overall target based on its share of the domestic energy market in Britain.

The obligated energy suppliers work with installers to introduce certain efficiency measures into your home, such as loft or wall insulation, or heating measures.

The ECO4 scheme consists 

The Home Heating Cost Reduction Obligation requires energy suppliers to promote the installation of measures that lead to financial savings on energy bills, such as the installation of insulation and heating measures.

You are eligible for ECO if you are a core group customer from scheme year 9 onwards under the Warm Home Discount Scheme or you receive at least one of the following benefits and satisfy the relevant income requirements, where applicable.

Housing Benefit

Pension Savings Credit

Pension Guarantee Credit

Income-related Employment and Support Allowance (ESA)

Income-based Jobseeker’s Allowance (JSA)

Income Support

Tax Credits (Child Tax Credits and Working Tax Credits)

Child Benefit

Universal Credit

Alternatively, if you are living in social housing with an EPC rating of E, F or G you might also be eligible for the scheme. Social housing with an EPC rating of D can also qualify for an innovation measure. Further information on innovation can be found in our Innovation Guidance which will be published in due course.

Local authorities are also able to refer residents in their areas to obligated energy suppliers so that they can be offered support under the scheme.

Under ECO4 there is an additional in-fill mechanism for solid wall insulation and district heating measures. Under this mechanism if 66% of eligible households receive either of these measures, an adjacent property can also receive the same measure without needing to meet the eligibility criteria.

Can I benefit from ECO?

In order to benefit from ECO scheme you must own your own home or an Tenant with permission from your Landlord and meet the relevant criteria or for First Time Central Heating, Condensing Boiler, Loft insulation, EWI (External Wall Insulation), IWI (Internal Wall Insulation), Heating Controls, Draft Proofing.

Social Housing Associations and Councils are retrofitting there housing stock too so get in touch with them to find out how your home can benefit.

Local Authority Eligibility

Local Authorities have pledged to help low income households who’s household income, after a household deducts from it’s income   tax, council tax, mortgage payments and energy bills for the year, that fall below the following income bands.

Birmingham TBC

Dudley TBC

Sandwell TBC

Walsall £31,000.00

Wolverhamton £31,000.00