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.
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: ECO3 and the Home Heating Cost Reduction Obligation.
ECO3 is the latest stream of ECO. It mainly focuses on low income and vulnerable households, helping to meet the Government’s fuel poverty commitments. This grant is intended to fund renewable technology and replace expensive, broken, inefficient fossil fuelled systems or non-centrally heated systems.
As a funding stream, ECO3 is based on the cost savings between the old and new heating and hot water systems. This grant applies to district heating schemes and social housing installations, but the properties must have a registered Energy Performance Certificate (EPC) of E, F or G to be eligible.
Under ECO3, heating replacements tend to go hand in hand with insulation and energy efficiency measures. For the funding of ground source heat pumps, walls must be insulated and evidenced. The roof of each property must be insulated by a minimum of 250mm, but if the roof is flat and cannot be insulated, evidence must be provided.
The current ECO scheme is running until 31st March 2022, at which point it is set to be replaced by ECO4 – a stream currently under consultation which is due to run from 1st April 2022 to 31st March 2026.
Find out more about ECO3
ECO4: Have your say in the consultation
The upcoming ECO4 scheme, due to begin in April 2022, is currently under consultation and seeking views from sectors including energy efficiency installers and local authorities. We encourage you to look at the consultation and make a representation here. The consultation closes on 31st August 2021.
See more about the consultation
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
The Non-Domestic RHI has now ended – please bear with us as we remove mentions of this expired funding stream across the website. In the meantime, visit this page to explore other funding options or contact us directly to talk about your project. What is the Non-Domestic RHI? The Non-Domestic Renewable Heat Incentive (RHI) is a…
EDF Energy has signed an agreement with UK-based ground source heat pump manufacturer and installer Kensa Heat Pumps to fund vital energy saving measures for social housing providers and their residents. The industry first commitment sees a unique partnership that will provide funding support to housing associations and other registered social landlords across the UK…
A unique partnership between EDF Energy and Kensa Heat Pumps has won a major National award following the reduction of 75 homes’ annual energy bills by 50% and CO2 emissions by 65%, in just 18 months.
Cornish manufacturer Kensa Heat Pumps and Coastline Housing have received industry acclaim with an award for their recent renewable heating upgrade project in Constantine, the first of its kind in Cornwall.