As an installer of energy efficiency solutions like cavity wall insulation, underfloor insulation, loft insulation and boiler replacements, you could be understandably eager to reach out to households that have not previously used or seriously considered any of our services.
However, there could be a sobering if ultimately understandable reason for these households’ reluctance: their budgets can’t, at least alone, stretch to covering new, more eco-friendly insulation or heating. Situations like this are why the UK Government’s ECO scheme was introduced.
Introducing the UK’s ECO energy efficiency scheme…
The UK Government has introduced ECO in a bid to tackle fuel poverty as well as help rein in carbon emissions. Here is how the Energy Company Obligation – as ECO is otherwise called – works…
Under the scheme, medium and larger energy suppliers are obligated to contribute funding to the installation of energy efficiency measures in lower-income households across the country. The amount of these measures for which each of these suppliers is required to provide funding depends on the supplier’s market share.
However, since 2020, gas and electricity suppliers with over 150,000 customers have been automatically required to participate in the ECO scheme. Hence, there are many suppliers with which you, as an installer, could partner to deliver ECO improvements.
You could tap into a previously unchartered market
The latest version of the scheme is called ECO3, was introduced in December 2018 and is set to run until 31 March 2022. ECO3 is focused squarely on lower-income customers who are deemed to be either in vulnerable situations or living in fuel poverty.
Overall, 6.5 million households are eligible for support under ECO3, reports the consumer watchdog organisation Which? – with ECO3 intending to deliver energy-saving enhancements to 900,000 homes. You could reach out to households that could never previously have afforded your services.
Energy suppliers can practically promote your firm’s solutions
Naturally, it’s not the energy supplier but instead the installer with which they partner under ECO that does the heavy lifting of implementing the energy efficiency improvement in a practical sense. The energy supplier does, however, provide funding for the work.
The supplier is also, due to what is called the Home Heating Cost Reduction Obligation (HHCRO), required to promote the installation of measures that result in financial savings on energy bills, as Ofgem explains. Therefore, while offering such measures – like insulation and heating – under ECO, you can leave the energy supplier to essentially market those services for you.
It’s easier to get help with ECO than you might think
As an installer, you might have the expertise to provide the eco-friendly improvements mentioned above, but you still need to find an energy supplier that can provide the required ECO funding. In practice, approaching such a supplier and striking a deal with them can prove tricky.
This is why you should seriously consider first approaching our organisation, as we already have experience in securing Energy Company Obligation funding from some of the UK’s largest energy suppliers and so could do so on your behalf.