What is the ECO Scheme? - Viva Training Centre

The Energy Company Obligation (ECO) Scheme was launched in 2013 to make large energy companies more responsible for the warmth of their customers.

The current version of the scheme (ECO3) requires these energy companies to fund retrofit energy efficiency measures for people at risk of fuel poverty or would otherwise struggle to pay for home improvements.

ECO3 is due to end on 31 March 2022, after which the fourth and final phase of the scheme (ECO4) is expected to run until 31 March 2026.

Can I get heat pump funding under the ECO scheme?

ECO3 provides funding for insulation and heating measures, including renewable heating systems such as heat pumps. When installed correctly, high efficiency heat pumps can dramatically reduce energy requirements, making day-to-day running costs more manageable for tenants and homeowners.

Eligible homes will be assessed to see where the most impact can be made in terms of energy efficiency improvements and a reduction in long-term running costs.

Home improvements could include:

  • Loft insulation
  • Cavity wall insulation
  • Solid wall insulation
  • Boiler replacement or repair
  • Heat pump installation
  • Heating controls

Am I eligible for the ECO Scheme?

The scheme is designed to tackle fuel poverty with funding focused on the least energy efficient homes occupied by low-income or vulnerable people, including:

  • homeowners, private tenants and social tenants who receive the Warm Home Discount or a qualifying benefit.
  • homeowners, private tenants and social tenants who receive Child Benefit and are on a low-income.
  • social tenants who live in a house with an EPC rating of E or below.

If you are renting, you’ll need the permission of your landlord before you apply.

Will a heat pump reduce my energy bills?

Heat pumps are much more efficient than gas or oil boilers because they use naturally occurring heat from the air or the ground, rather than generating heat through burning fossil fuels. For every unit of electricity a heat pump consumes, it will provide up to 4 units of heat.

The potential for day-to-say savings depends on several factors, such as the size of the home, the type of heat emitters used, the fabric of the home and the existing heating system. But if you have suitable insulation and the heat pump system is correctly sized and based on accurate heat loss calculations then you should see lower running and maintenance costs.

We will soon be launching our Sustainable Homes Centre, where you can find out about heat pumps and view Daikin’s state-of-the-art product range. We’re having an open day on 3rd March. Find out more and book to come along, here.

What benefits qualify for ECO funding?

ECO3 funding is available to households in receipt of certain benefits, including Child Benefit, Tax Credits and Universal Credit subject to minimum income requirements.

Qualifying benefits include:

  • Armed Forces Independence Payment
  • Attendance Allowance
  • Carer’s Allowance
  • Constant Attendance Allowance
  • Disability Living Allowance
  • Pension Guarantee Credit
  • Income-related Employment and Support Allowance (ESA)
  • Income-based Jobseeker’s Allowance (JSA)
  • Income Support
  • Industrial Injuries Disablement Benefit
  • Mobility Supplement
  • Personal Independence Payment
  • Severe Disablement Allowance

If you are outside of the benefits system, you could still qualify for certain energy efficiency measures under the Local Authority Flexible Eligibility (or LA Flex) element to ECO3 if your home is in a designated area or there are a large percentage of eligible homes in your area.

Where can I find out more about ECO funded heat pumps?

Come along to our Daikin Sustainable Homes Centre launch!

Our purpose-built showroom is fully kitted out with the latest Daikin heat pumps so you can see the technology in action. A heat pump expert will be on hand to answer your questions and you can connect with local ECO scheme installers to get your funding application off the ground.


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