Energy Company Obligation (ECO)

The Energy Company Obligation (ECO) is a government scheme designed to help cut carbon emissions and reduce fuel poverty.

The biggest energy suppliers have targets to help households with energy efficiency measures, and the ECO is part of those aims.

The types of measures available through ECO can include loft insulation, cavity wall insulation, solid wall insulation and boiler replacement or repair. 

The Great British Insulation Scheme is the next phase of ECO and open to a wider pool of people. You might be able to get support to install insulation including cavity wall insulation and loft insulation.

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What is the Energy Company Obligation?

Energy suppliers must help households reduce the costs and carbon emissions of their home heating by fitting energy-saving measures. Suppliers must focus on ways to help low income or fuel poor households, as well as those in vulnerable situations, to heat their homes. 

Energy companies can choose what energy-saving measures they want to install, how much funding they provide and the installer that does the work.

Can I get ECO funding?

To qualify for ECO funding at the moment you must own your home - or have the permission of your landlord. 

It must also require energy efficiency upgrades - this is decided by a retrofit assessment.

Different companies provide different amounts of support and will fund different energy efficient improvements, so it's quite complicated to work out if you can get ECO funding. 

There are several factors that make it more likely that you'll qualify:

• If you get eligible benefits (see the full list on energy regulator Ofgem's website)
• You meet the criteria set by your Local Authority (it can refer you for support).

But you'll still need to check with your energy provider for their exact criteria. Even if you are eligible, the energy supplier doesn't have to install an energy efficient measure in your home.

Depending on where you live, there are different ways to check your eligibility:

• England and Wales: Check the government's website find ways to save energy in your home, or phone 0800 098 7950.
• Scotland: Contact Home Energy Scotland, or phone 0808  808 2282.

If you’re not eligible for help making your home more energy efficient via ECO, read our tips for saving money on your energy bills.

Can the Great British Insulation Scheme help me?

The Great British Insulation Scheme (also called ECO+) may be able to help you get free or cheaper insulation for your home via your energy supplier.

You can be a homeowner, landlord or tenant (renting privately or from a housing association). If you're a tenant you'll need permission from your landlord to install insulation.

To be eligible your home will need to:

• have an Energy Performance Certificate (EPC) rating of D to G
• be in council tax band A to D in England, or A to E in Scotland or Wales.

Energy companies must deliver 20% of their annual budget to those on low incomes or in vulnerable situations. So you might also qualify if you meet its criteria for those.

You could get funding for:

• cavity wall insulation (including party walls)
• solid wall insulation (external and internal)
• solid floor insulation and under floor insulation
• loft insulation (and room-in-roof insulation)
• roof insulation (flat roof and pitched roof)
• park home insulation.

You will be able to get two of these types of insulation funded through the initiative, and homes which qualify should save £300-£400 per year, according to government. Draught proofing is not included.

You can check your eligibility and apply using the government's tool to apply for support from the Great British Insulation Scheme.

Your energy company will contact you if you qualify for support. They'll arrange to assess your home. If you need to pay anything, you'll find out after the assessment. Then you can decide whether to go ahead or not.

The Great British Insulation Scheme will run until March 2026. 

Energy efficient home improvements with ECO, including free insulation

Energy suppliers currently offer different ECO measures. They can choose what they focus on.

Some of the most common are:

• loft insulation 
• cavity wall insulation
• solid wall insulation 
• a new boiler
• Boiler controls and how they can save you money.

Companies can also pay for homes to be connected to district heating systems, where appropriate.

Which energy suppliers offer ECO?

The following gas and electricity suppliers must fit ECO measures. You can contact any energy supplier - it doesn't need to be the one you pay for your gas and electricity. They are: 

• British Gas
• E (Gas & Electricity)
• E.ON Next
• Ecotricity
• EDF Energy
• Octopus Energy
• Outfox the Market
• Ovo Energy
• Scottish Power
• Shell Energy
• So Energy
• Utility Warehouse
• Utilita

The amount of ECO measures each company has to fit depends on its market share. 

Make your home more energy efficient

Even if you're not able to get ECO funding, there's plenty you can do to save energy at home – and cut your bills in the process.

Insulation, double-glazing, draught proofing and low-energy lighting are all important.

Get started with draught proofing your home and making your home more energy efficient.  

Plus you can now find out where you can make energy efficient changes to your own home with our free home energy planning service.