The Energy Company Obligation

The Energy Company Obligation (ECO) provides heat pump grants for retrofit energy efficiency schemes featuring ground source heat pumps. Under the ECO, larger energy suppliers are legally obliged to fund energy efficiency measures in British households.

Our delivery partner, Kensa Contracting, successfully supports thousands of ECO installations in social housing retrofits across the UK. The aim is to reduce carbon emissions and confront fuel poverty.

Energy Company Obligation

Who is the ECO for?

ECO supports retrofit efficiency projects. Such projects include heating replacements in the domestic sector, with a particular focus on vulnerable consumer groups and hard-to-treat homes. This might be properties with limited or no access to mains gas, or homes where energy efficiency is expensive.

Under the rules of ECO, energy suppliers are obliged to fund energy efficiency improvements of their domestic customers’ buildings in two distinct streams: ECO4 and the Home Heating Cost Reduction Obligation.


The government’s response to ECO4 consultation sets out the policy of the scheme from April 2022 until March 2026. Please click on the link below to find out more about ECO4.

Find out more about ECO4

Home Heating Cost Reduction Obligation (HHRCO)

Under the HHRCO, energy suppliers are required to fund measures which improve the ability of low income and vulnerable households (the ‘Affordable Warmth Group’) to heat their homes. This includes actions that result in heating savings, such as the replacement or repair of a boiler for example.

See more on ECO & eligibility

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