What is ECO?

Energy Company Obligation (ECO) Programme - the Ins & Outs


The Energy Company Obligation (ECO) programme is a Government scheme that provides different groups of householders with access to subsidised energy saving measures.

Central Heating InstallerThe scheme is funded by major Energy Companies who have been obligated to provide funding for heating and insulation improvements. Its primary aim is to cut the UKs carbon footprint and to help vulnerable householders reduce their fuel bills.

Find out which measures are funded through ECO.

ECO was launched in 2013 in conjunction with the Green Deal and is due to run until 31st March 2018.  Energy Companies have been set a series of targets that they must meet by specific timeframes.

ECO Strands


An Energy Company’s overall obligation is divided into specific delivery targets set against different ECO strands. ECO was divided into four strands to help different groups of householders: the Home Heating Cost Reduction Obligation (HHCRO), the Carbon Emissions Reduction Obligation (CERO), the Carbon Saving Community Obligation (CSCO) and the Carbon Saving Community Obligation Rural (CSCO Rural).

The scheme has since been altered and as of April 2017 there will only be two ECO strands for the remainder of the programme: HHCRO and CERO. Therefor Energy Companies are required to meet their CSCO and CSCO Rural targets by March 31st 2017.

 
Home Heating Cost Reduction Obligation (HHCRO)

Installer fitting windowHHCRO is designed to support vulnerable housholders and tackle fuel poverty.

It has become the primary ECO strand and will take the lions share of the budget for the final stage of the programme.

To qualify for HHCRO funding,  residents must meet 'Affordable Warmth' criteria. Please note that HHCRO will adopt a new Help to Heat criteria in April 2017.

Homeowners and private renting tenants that are in receipt of qualifying state benefits, will qualify for funding towards insulation and heating upgrades.

The funding is used to support the poorest and most vulnerable residents and focuses primarily on low cost insulation upgrades, new heating systems and boiler replacements.

In April 2017, HHCRO will also be available for Social Housing proving properties have an energy efficiency rating of E, F or G. Social Housing residents will not need to claim benefits to access support.

Unlike other ECO strands, HHCRO is measured in estimated life time fuel bills savings (LTS cost score points), rather than carbon savings. The more money a measure will save a resident, the more LTS cost score points will be allocated.


Affordable Warmth Criteria

Homeowners and private renting tenants that receive the following state benefits are eligible for support through HHCRO.

One of these benefits:

State pension credit     Child tax credit and has
a relevant income
of £15,860 or less

Or one of these benefits

Income related
employment
& support
allowance
  —►

Plus one of
the following

—►
 

Parental responsibility for a child under the age of 16 or is between 16 & 20 if in full time education who ordinarily resides with that parent (excludes higher education)
 


A disabled child premium
 


A disability premium, enhanced disability premium or severe disability premium A pension premium, higher pension premium or enhanced pension premium
 


A work related activity or support component
(only with income-related employment and support allowance)
 
   
Income based
job seekers allowance
 
   

Income
Support

 
 

 
       
Working tax credit
with a relevant
income below £15,860
  —►

Plus one of
the following

—►
 

Parental responsibility for a child under the age of 16 or is between 16 & 20 if in full time education who ordinarily resides with that parent (excludes higher education)
 


Receives a disabled worker element or severe disability element
 


Is 60 years of age or over
 

 
       
Universal
Credit with a
net monthly income
of £1,167
or less
 

Plus one of
the following


 

Parental responsibility for a child under the age of 16 or is between 16 & 20 if in full time education who ordinarily resides with that parent (excludes higher education)
 


Has limited capability for work and/or work-related activity
Receives Disability Living Allowance
 


Receives Personal Independence Payment
 


HHCRO Measures

The following measures can be funded under HHCRO:

Internal Solid Wall Insulation
External Solid Wall Insulation
Cavity Wall Insulation
Hard to Treat Cavity Wall Insulation
Loft Insulation
Room in Roof Insulation
Flat Roof Insulation
Under Floor Insulation
Pipework Insulation
Draught Proofing
Window Glazing
Passageway Walk Through Doors
High Performance External Doors
A-Rated Boilers
Electric Storage Heaters
Warm Air Units
Heating Controls
Flue Gas Heat Recovery Ventilation
Radiator Panels
District Heating Connections
Air Source Heat Pump*
Ground Source Heat Pump*
Biomass Boiler
Micro Combined Heat and Power*
Solar Photovoltaics*
Micro Wind*
Micro Hydro*

*Additional criteria is required


Looking for HHCRO funding?

All funding opportunities are promoted via the Hub's E-shots and in the Latest News section of this website.

Please note YES Energy Solutions (who manage Green Deal Installer Hub) will only issue ECO funding to Hub members once an ECO proposal has been submitted, approved and finalised. Commercial partnerships will be reviewed on a case by case basis.

Find out more: Join the Hub
 
 
Carbon Emissions Reduction Obligation (CERO)

External solid wall insulationCERO is the ECO strand that targets properties with the highest carbon footprints. Most of these homes require some level of insulation.

Funding is available to support both private sector homes and social housing.

CERO mainly funds wall and loft insulation and is measured in tonnes of carbon saved.

Providing a property is technically suitable, any householder is eligible for CERO funding.


CERO Criteria

CERO is currently available to all householders (subject to technical survey).


CERO Measures

The following measures can be funded through CERO:

Internal Solid Wall Insulation
External Solid Wall Insulation
Cavity Wall Insulation
Hard to Treat Cavity Wall Insulation
Loft Insulation
Room in Roof Insulation
Flat Roof Insulation
Under Floor Insulation*
Hot Water Cylinder Insulation*
Pipework Insulation*
Draught Proofing*
Window Glazing*
Passageway Walk Through Doors*
High Performance External Doors*
District Heating Connections

*Eligible only as a Secondary Measure


Looking for CERO funding?

All funding opportunities are promoted via the Hub's E-shots and in the Latest News section of this website.

Please note YES Energy Solutions (who manage Green Deal Installer Hub) will only issue ECO funding to Hub members once an ECO proposal has been submitted, approved and finalised. Commercial partnerships will be reviewed on a case by case basis.

Find out more: Join the Hub
 
 
Carbon Savings Community Obligation (CSCO)

Please note that the obligation period for the CSCO ECO stand will complete on the 31st March 2017. CSCO will no longer be a requirement in the final stage of ECO.

Home Insulation InstallerCSCO supports householders from deprived communities that are at a higher risk of living in fuel poverty.

Residents that live in specific geographical locations - the bottom 25% most deprived Lower Super Output Areas, are eligible for support towards their home efficiency upgrades.

CSCO targets both private sector properties and social housing, and similar to CERO, it primarily focuses on insulation measures. It replaced the Government’s previous Community Energy Saving Programme (CESP) which also targeted areas of high deprivation.

The industry regulator, Ofgem have created a useful tool to help identify CSCO areas and check eligible postcodes: Use the Ofgem CSCO tool


CSCO Criteria

Households that require energy saving measures in homes that are situated within the bottom 25% most deprived Lower Super Output Areas.

Find out more about Lower Supper Output Areas.


CSCO Measures

The following measures can be funded under CSCO:

Internal Solid Wall Insulation
External Solid Wall Insulation
Cavity Wall Insulation
Hard to Treat Cavity Wall Insulation
Loft Insulation
Room in Roof Insulation
Flat Roof Insulation
Under Floor Insulation
Hot Water Cylinder Insulation
Pipework Insulation
Draught Proofing
Window Glazing
Passageway Walk Through Doors
High Performance External Doors
District Heating Connections


Looking for CSCO funding?

All funding opportunities are promoted via the Hub's E-shots and in the Latest News section of this website.

Please note YES Energy Solutions (who manage Green Deal Installer Hub) will only issue ECO funding to Hub members once an ECO proposal has been submitted, approved and finalised. Commercial partnerships will be reviewed on a case by case basis.

Find out more: Join the Hub
 
 
Carbon Savings Community Obligation Rural (CSCO Rural)

Please note that the obligation period for the CSCO Rural ECO stand will complete on the 31st March 2017. CSCO Rural will no longer be a requirement in the final stage of ECO.

CSCO Rural is a subset of CSCO. It is designed to support low income and vulnerable residents living in deprived rural communities. Both private sector householders and social housing qualify.

Residents that live in the bottom 25% most deprived rural Lower Super Output Areas are eligible for a range of subsidised energy saving measures.

CSCO Rural also supports a proportion of residents from non-deprived rural areas.  Residents that live settlements of less than 10,000 and qualify under the HHCRO eligibility criteria can also receive support through CSCO Rural.

To check CSCO Rural areas and qualifying postcodes: Use the Ofgem CSCO tool


CSCO Rural Criteria

Householders from the bottom 25% most deprived rural Lower Super Output Areas or those that meet HHCRO eligibility criteria and live in rural locations of less than 10,000 homes.


CSCO Rural Measures

The following measures can be funded under CSCO Rural:

Internal Solid Wall Insulation
External Solid Wall Insulation
Cavity Wall Insulation
Hard to Treat Cavity Wall Insulation
Loft Insulation
Room in Roof Insulation
Flat Roof Insulation
Under Floor Insulation
Hot Water Cylinder Insulation
Pipework Insulation
Draught Proofing
Window Glazing
Passageway Walk Through Doors
High Performance External Doors
District Heating Connections


Looking for CSCO Rural funding?

All funding opportunities are promoted via the Hub's E-shots and in the Latest News section of this website.

Please note YES Energy Solutions (who manage Green Deal Installer Hub) will only issue ECO funding to Hub members once an ECO proposal has been submitted, approved and finalised. Commercial partnerships will be reviewed on a case by case basis.

Find out more: Join the Hub



Primary & Secondary ECO Measures


ECO measures are prioritised depending on which ECO strand a household falls into. They are either assigned as primary or secondary measures.

A primary measure is an installation that can be independently funded through ECO. Secondary measures can only be funded if a primary measure is also being installed.

A primary insulation measure (e.g. external wall insulation) will need to encompass at least 50% of the property’s external perimeter wall.
    
Installers wishing to access ECO funding through the Hub will need to profile their customers against the eligibility criteria of the relevant ECO strand.



ECO Funding for Installers


Through Green Deal Installer Hub, you can connect to the Green Deal Provider - YES Energy Solutions. The organisation works in partnership with a number of Energy Companies and can access ECO funding on behalf of installers.

If you’re looking to work on ECO contracts or have a project in the pipeline which would benefit from ECO funding, get in touch today. Membership to Green Deal Installer Hub is FREE, so register your details and find out how you could access ECO funding in your area.       

Join the Hub
 

Join a leading network of SME installers

Green Deal & ECO News :

CERO Funding Available

CERO Funding AvailableYES Energy Solutions has CERO funding in place and is looking to on-board new installer partners to deliver home insulation measures.

25-04-2017

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ECO Transition - New Rules Confirmed

ECO Transition - New Rules ConfirmedOn Monday 30th January the Government released the long awaited consultation response detailing the new criteria for the next phase of the Energy Company Obligation (ECO) scheme. Find out what's in store post April 2017.

03-02-2017

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