Energy Company Obligation (ECO)
The Energy Company Obligation (ECO) is a government scheme designed to help cut carbon emissions and reduce fuel poverty.
The biggest energy suppliers have targets to help households with energy efficiency measures, and the ECO is part of those aims.
The types of measures available through ECO can include loft insulation, cavity wall insulation, solid wall insulation and boiler replacement or repair.
The next phase of ECO is called the Great British Insulation Scheme. You might be able to get support to install insulation including cavity wall insulation and loft insulation.
What is the Energy Company Obligation?
It's a requirement for energy suppliers to help households reduce the costs of their home heating by fitting energy-saving measures. These measures should focus on ways to help low income or fuel poor households, as well as those in vulnerable situations to heat their homes.
Energy companies can choose what energy-saving measures they want to install, how much funding they provide and the installer that does the work.
Can I get ECO funding?
To qualify for ECO funding at the moment you must own your home - or have the permission of your landlord.
It must also require energy efficiency upgrades - this is decided by a retrofit assessment.
Different companies provide different amounts of support and will fund different energy efficient improvements, so it's quite complicated to work out if you can get ECO funding.
There are several factors that make it more likely that you'll qualify:
- If you get the Warm Home Discount in the 'core' group, get eligible benefits and fit the income requirements
- You meet the criteria set by your Local Authority (it can refer you for support).
But you'll still need to check with your energy provider for their exact criteria. Even if you are eligible, the energy supplier doesn't have to install an energy efficient measure in your home.
Depending on where you live, there are different ways to check your eligibility:
- England and Wales: Check the government's website find ways to save energy in your home, or phone 0800 098 7950
- Scotland: Contact Home Energy Scotland, or phone 0808 808 2282.
If you’re not eligible for help making your home more energy efficient via ECO, read our tips for saving money on your energy bills.
Can the Great British Insulation Scheme help me?
The Great British Insulation Scheme (also called ECO+) may be able to help you get free or cheaper insulation for your home via your energy supplier.
Around 300,000 extra homes are expected to benefit. You can be a homeowner, landlord or tenant (renting privately or from a housing association). If you're a tenant you'll need permission from your landlord to install insulation.
To be eligible your home will need to:
- have an Energy Performance Certificate (EPC) rating of D to G
- be in council tax band A to D in England, or A to E in Scotland or Wales.
Energy companies must deliver 20% of their annual budget to those on low incomes or in vulnerable situations. So you might also qualify if you meet its criteria for those.
You could get funding for:
- cavity wall insulation (including party walls)
- solid wall insulation (both external and internal)
- solid floor insulation and under floor insulation
- loft insulation (and room-in-roof insulation)
- roof insulation (both flat roof and pitched roof)
- park home insulation.
You will only be able to get one form of insulation funded through the initiative but homes which qualify should save £300-£400 per year, according to government. Draught proofing is not included.
You can check your eligibility and apply using the government's tool to apply for support from the Great British Insulation Scheme.
Your energy company will contact you if you qualify for support. They'll arrange to assess your home. If you need to pay anything, you'll find out after the assessment Then you can decide whether to go ahead or not.
The Great British Insulation Scheme will run until March 2026.
Energy efficient home improvements with ECO, including free insulation
Energy suppliers currently offer different ECO measures. They can choose what they focus on.
Some of the most common are:
Companies can also pay for homes to be connected to district heating systems, where appropriate, or to install heating controls.
Proportions of each measure installed as part of the ECO4 scheme between January March 2023:
- Gas boiler replacement – 13%
- Other heating* – 44%
- Loft insulation – 15%
- Cavity wall insulation – 13%
- Solid wall insulation – 6%
- Micro-generation - 6%
- Other insulation - 2%
*Other heating includes heating controls.
Which energy suppliers offer ECO?
Gas and electricity suppliers with more than 150,000 customers must fit ECO measures. You can contact any energy supplier - it doesn't need to be the one you pay for your gas and electricity.
They are:
- British Gas
- E
- Ecotricity
- EDF Energy
- Eon Next
- Octopus Energy (including Co-Op Energy)
- Outfox the Market
- Ovo Energy (including Boost)
- Scottish Power
- Shell Energy
- So Energy
- Utility Warehouse
- Utilita
The amount of ECO measures each company has to fit depends on their market share.
Suppliers must deliver 15% of their ECO measures to homes in rural areas, and 10% of them can be installing ‘innovative’ products, such as devices to help homeowners manage their energy use.
Make your home more energy efficient
Even if you're not able to get ECO funding, there's plenty you can do to save energy at home – and cut your bills in the process.
Insulation, double-glazing, draught-proofing and low-energy lighting are all important.