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More about the Energy Companies Obligation grants

The Energy Companies Obligation is the grant-funded element of the Green Deal.

If you own your own home or are a private tenant then you could be eligible for a 100% grant to pay for a brand new A-rated boiler. The boiler would be installed by a Gas Safe Registered Boiler installer who is part of the Futureproof national network.

In certain parts of the country, home owners and private tenants may also qualify for Loft, Cavity Wall or External Wall insulation.

Under ECO, the “Big Six” energy suppliers including British Gas, E.ON, Scottish Power, Npower, SSE and EDF are obliged to pay for home insulation and heating for the poorest and most vulnerable householders and the hardest to treat properties.

In order to qualify for ECO funding, you must be a homeowner or a private tenant (not Council/Housing Association).

The person living in the property must also be in receipt of at least one of the following benefits:

  • State Pension Credit (top up to Station Pension);
  • Child Tax Credit (household income under £15,860);
  • Income Support;
  • Income-based Jobseekers Allowance;
  • Income-related Employment Support Allowance;
  • Working Tax Credit.

If the person receives Income Support, Income-based Job Seeker’s Allowance or Income-related Employment Support Allowance, one extra condition must also apply as follows:

  • Child under 16;
  • Child under 20 in full-time education (not University);
  • Child Tax Credit (including a disability element);
  • Disabled Child Premium;
  • Disability Premium;
  • Pensioner Premium;
  • Work related activity or Support Component (with Income-related Employment Support Allowance).

For those in receipt of Working Tax Credit, one of the following must apply:

  • You are 60 years of age or over;
  • You have a child under 16;
  • You have a child under 20 in full-time education (not University);
  • You have a Severe Disability Element;
  • You have a Disabled Worker Element.

Through ECO, the Government aims to help 230,000 low income households or those living in low income areas.

The expected investment by the “Big Six” energy suppliers is £1.3 billion a year with a 75:25 split between the two types of ECO scheme – Affordable Warmth Obligation and Carbon Saving Obligation.

The Affordable Warmth Obligation is there to provide heating and insulation improvements for low income and vulnerable households; while the Carbon Saving Obligation provides funding to insulate solid-walled properties (internal and external wall insulation) and those with so called “hard to treat” cavity walls.

How does ECO work in practice?

After receiving a customer enquiry, a Futureproof engineer will visit to carry out the eligibility survey. This is quickly completed using the Installer Cloud paperless workflow management system. Once the eligibility test has been passed, the engineer carries out a technical survey and, if required, an Energy Performance Certificate (EPC).

The go ahead for the works to begin comes through in less than 48 hours after which the new A-rated boiler can be installed.