What is the ECO Scheme?

What is the ECO Scheme?

In April 2013 the British Government launched the Energy Company Obligation scheme, or ECO. The scheme was part of the Government’s effort to enhance the UK’s energy efficiency, reducing the carbon footprint of British households. The latest iteration of the scheme (ECO3) will run from Autumn 2018 to March 2022, delivering energy efficiency and heating measures to low income households nationwide.

Based on extensive consultations and feedback from the previous version of the scheme, the Government introduced ECO3 with several policy aims including:

  • Focusing the entire scheme to support low income, vulnerable and fuel poor households

  • Reducing the current supplier obligation threshold of 250,000 customer accounts (or equivalent) for the scheme, in a phased way, to 150,000 customer accounts (or equivalent) from 2020

  • Requiring 15% of measures to be delivered to rural homes

  • Increasing the proportion of the scheme that can be delivered under local authority flexible eligibility to 25%

  • Allowing up to 10% of a suppliers’ obligation to be met through the delivery of new, innovative products

  • Supporting households that have a broken heating system by allowing the equivalent of 35,000 broken heating systems to be replaced per year

  • Encouraging a multiple measure approach by allowing the replacement of inefficient heating systems to be replaced (outside of the broken heating system cap) if they are installed alongside insulation

  • Requiring the equivalent of at least 17,000 solid walled homes to be treated per year, either through solid wall insulation, or using a combination of other technologies (if equivalent savings can be achieved in the property)