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Energy Company Obligation (ECO)

The Green Deal is set up to allow householders to improve the energy efficiency of their properties, at no upfront cost and at no real cost overall, with the inclusion of the Golden Rule. The Golden Rule ensures that savings outweigh loan repayment costs.

 However, in cases where the Green Deal's Golden Rule can not be made to work, i.e. where the energy savings made are not sufficiently great enough to pay for the measures taken out, but where there are impelling policy reasons in favour of implementation of energy efficiency measures, then an 'Energy Company Obligation' (ECO) will become a vital pillar of support.

One of the aims is to provide suport for lower income and vulnerable households. Those on lower incomes tend to underheat their homes. This can cause health problems, which whilst obviously undesirable on a personal level for the individuals concerned, may also impact on other areas, such as the National Health Service and which is therefore to be avoided.

ECO is expected to play an important role in supporting the upfront costs of basic heating and insulation measures for those on low incomes and also for vulnerable households who are likely to struggle to heat their homes to a suitable level. Measures covered include free 'A' rated gas boilers, loft and cavity wall insulation and solid wall insulation.

ECO will be entirely focussed on:

• the needs of the lower income and most vulnerable; and/or
• those properties needing the next most cost-effective measures that do not meet the Golden Rule. (** See Note below.)

Unlike previous initiatives, which targeted all households, the ECO targets are only be within a certain householder group such as those on lower incomes and also vulnerable households where Green Deal is less likely to work.

In addition, it is also targetted at certain property types, such as those with narrow or no cavities in their external walls, and so in need of SWI.

More information can be found HERE and you may apply HERE.


(**Note: For example, external wall insulation (EWI), internal wall insulation (IWI), each also known as solid wall insulation (SWI).)