ECO – Energy Company Obligation

portfolio-eco-image-1The coalition Governments Green Deal aimed to establish a new market for energy efficiency measures from 2012, at the heart of which was a householder-financing mechanism.

The overall idea was that Green Deal finance would place the emphasis for paying for energy efficiency measures with the beneficiary.

There were some cases where the “Golden Rule” was expected not to work but where there are strong policy reasons still to promote energy efficiency measures.

With each passing day, this government puts an end to another green policy. The government’s strategy on dealing with high energy bills through home energy efficiency is now dead in the water.Julie Hirigoyen, CEO of the UK Green Building Council

The key mechanism to support these cases was the Energy Company Obligation (ECO) which was entirely focussed on:

  • the needs of the lower income and most vulnerable
  • those properties needing the next most cost-effective measures that do not meet the Golden Rule – for example, solid wall insulation (SWI).

From the outset, the targets were only within a certain householder group – lower income and vulnerable households where ironically Green Deal was less likely to work but needed the most – and/or with certain expensive to insulate property types, such as those needing SWI.

For more information on the ECO please click here.

But sadly this is no more either.