Energy Company Obligation(ECO)is a grant which has been formed to be incorporated with the Green Deal now underway!
Its main function is placing one or more obligations onto the “big six” energy suppliers to provide financial support where the Green Deal is not enough to cover costs of essential energy efficient measures.
Energy companies are required to generate credit for specific amounts on ECO qualifying homes to assist with these installations.
Who will benefit from ECO?
Very similar to (CERT) Carbon Emission Reduction Target grants , ECO grants are designed to aid those who fall into the following 3 strands of ECO
Home Heating Cost Reduction Obligation (HHCRO) - Affordable Warmth
Will be to provide free heating and hot water saving measures, insulation, glazing and micro-generation technologies (except PV) to low income and vulnerable households. Generally households where the residents are in receipt of tax credits and certain benefits and are the least able to sufficiently heat their homes.
Carbon Emissions Reduction Obligation
Will be to provide additional support to properties with ‘hard to treat’ cavity walls, and insulation (internal and external) to solid wall constructed properties.
These measures are a high cost to install and so would not meet the Green Deal ‘Golden Rule’. This strand of ECO funding would apply to homes where the charges added to the electricity meter for products installed are more than the estimated savings, and would not be able to fully fund the energy efficient improvements through a Green Deal finance package alone.
Carbon Saving Communities Obligation
Will be to provide FREE insulation and glazing measures and aims to reduce fuel poverty i.e people living in the bottom 15% of the UK’s most deprived areas.
As this is part of the Carbon Emission Reduction Obligation, this funding will only be available through a Green Deal package which includes solid wall insulation. This strand of ECO will benefit the social housing sector.
How will ECO affect the similar grants now available?
CERT grants ended December 2012 where ECO has taken its place and the Green Deal. All surveys and installations under CERT had to happen before December 2012, submit an application TODAY through Ecohomes NE and let us help you benefit from ECO!
Freephone 0800 334 5200 today