The Green Deal is a scheme introduced by the UK Government on 28th January 2013 that aims to increase the Energy Efficiency of 14 million homes.

There were two aspects to the Green Deal. Grant funding through the Energy Companies Obligation (ECO) and Green Deal Finance, which supports all other householders by providing a loan to install energy-related products. Green Deal Finance ceased in July 2015 but the ECO grants are due to continue until April 2017.

ECO grants can be claimed by homeowners and private tenants. Products available under and the grant scheme include the following:

The Energy Companies Obligation (ECO) Grant

The purpose of ECO is to support those living in fuel poverty and to contribute towards expensive Green Deal measures that would otherwise not meet the Green Deal Golden Rule.

The Energy Companies Obligation has been designed to fit in with the Green Deal by providing 100% grants to those living in fuel poverty. These householders can have Loft & Cavity Wall Insulation and in some cases a replacement Boiler or full Central Heating system installed. This means they will benefit from the full savings on their energy bills.

ECO is split into three parts:

Home Heating Cost Reduction Obligation (HHCRO)
Formerly known as Affordable Warmth. Customers in receipt of a qualifying benefit can receive fully funded measures. These include Loft & Cavity Wall Insulation, Boiler replacement and full Central Heating systems.

Carbon Saving Communities Obligation (CSCO)
Anyone living in a postcode area where incomes are generally lower than average and the likelihood of fuel poverty is higher can claim an ECO grant to have Loft and Cavity Wall Insulation free of charge.

Carbon Emissions Reduction Obligation (CERO)
CERO provides free Cavity Wall Insulation to all private householders. Loft Insulation is also funded at between 50% and 100% of the cost, depending on the efficiency of the property.

Which Products Qualify For An ECO Grant?

The following products can be installed with an ECO grant:

  • Loft Insulation
    11" (270mm) installed on the floor of a loft.
  • Cavity Wall Insulation
    Installed between bricks or brick/block.
  • Boilers & Central Heating
    For inefficient boilers or no heating.

Green Deal Finance

Prior to July 2015, those who did not qualify for an ECO Grant could receive Green Deal Finance to have energy efficient products installed. The savings on energy bills were used to pay for the cost of the work in installments.

The Green Deal was effectively a loan or charge against the property. The repayments were taken directly from the electricity bill and so the charge was passed on to the next occupier of the property.

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