The ECO scheme has been put in place by the Government to help Britain’s least efficient homes save money with insulation and improved heating systems. Launched in January 2013, the £1.3bn is funded each year to help homeowners around the UK.
The scheme is set to run until March 2015, with an effort to support low income households and properties which are deemed as hard to treat. The scheme runs hand-in-hand with the Green Deal, which helps support the uptake of insulation with a Government-backed loan.
Both ECO and the Green Deal form part of the Government’s plans to meet carbon emission reduction targets by 2050.
There are three parts to the ECO scheme:
Carbon Saving Community Obligation
This part of the Eco scheme is specifically targeted at households with a low income, dealing with many families who are in fuel poverty. Fuel poverty is classified as 10% or more of income spent on dual fuel energy bills.
The scheme is open in England, Scotland and Wales and eligible households can receive a free replacement boiler for their home. Energy efficient boilers can help to slash bills by as much as £310 each year according to the Energy Saving Trust.
Affordable Warmth Obligation
The Affordable Warmth Obligation is intended to provide heating and insulation to homeowners in private tenure properties and receiving benefits. Included in this bracket would be the elderly, disabled and families with a low income.
Carbon Saving Obligation
Insulation such as wall cavity and solid wall is funded through this section of the scheme. Hard to treat walls are also included, plus insulation which isn’t financed solely through the Green Deal.
How is the ECO funded?
The ECO scheme is funded by the UK’s energy suppliers including British Gas, npower and EDF. £1.3bn will be funded on an annual basis, with £540m provided to low income households.
The funding is provided directly to customers, with the insulation fitted by professionals in the various industries.