ECO (Energy Company Obligation)

ECO or the Energy Company Obligation is a scheme to help heat and insulate the most inefficient homes in Britain. The scheme is administered by Ofgem, funded by the energy companies and executed through companies such as GHE.

The scope of ECO is divided into 3 main obligation categories:-

  • Carbon Saving Obligation (CERO)
  • Carbon Savings Communities Obligation (CSCO)
  • Affordable Warmth (HHRCO)

Carbon Saving Obligation (CERO) 

Under CERO, obligated suppliers must promote ‘primary measures’, including roof and wall insulation and connections to district heating systems. This is the obligation GHE works under, see below for further details.

Carbon Savings Communities Obligation (CSCO)

This obligation is used for the most deprived areas of Britain. This is further split down to a sub rural obligation which is defined as a private or social tenure within a settlement under 10,000 homes and in receipt of qualifying benefits. This has again recently changed from the 15% most deprived areas to 25% most deprived areas, the qualifying benefits criteria has also been removed.

Affordable Warmth Obligation (HHCRO)

This obligation is aimed at people who need the most help to install energy efficiency measures. It has historically been used to fit new boilers. In order to qualify someone that lives in the property must get benefits. To see the eligibility criteria, click here.

GHE mainly work under CERO. This means it is the property that will qualify for funding and NOT the occupant. Of course, the funding does depend on the details of the property including property type, heating type and number of bedrooms.

Gaining the funding for insulation depends on the property itself and not the occupant, and is based on the type of property, it’s heating type and how many bedrooms. Funding is calculated on the amount of carbon tonnes a property produces, this is calculated from a Technical Survey. You can find more information on the Government website here.

Carbon tonnes are what are saved when insulating a property. The less wall area there is to insulate, the less carbon there is to save and therefore the funding is reduced. This is why things such as insulated extensions will reduce the funding available. Below shows the main qualifying details. But don’t hesitate to get in contact even if your property doesn’t fall under the below criteria, your home could still qualify!

If your property has a study, playroom, games room etc. that has a window and can fit a single bed in – you can count it as a bedroom for the funding even if it’s not currently used as one! This could dramatically affect the funding available for the property, so don’t forget to include it!