The Energy Company Obligation (ECO) was introduced in January 2013 to help reduce the UK’s energy consumption and support people living in or at risk of fuel poverty. It does this by funding energy efficiency improvements for households (both private and social). ECO followed on from the Carbon Emissions Reduction Target (CERT) which ran from 2008 to 2012 and the Community Energy Saving Programme (CESP), which ran from 2009 to 2012. The government Statuary Institute states that ECO will run until March 2015.

ECO funding particularly supports the poorest or most vulnerable householders who often cannot afford energy efficiency improvements without additional support and the types of properties generally missed in CERT & CESP, which are more challenging and more costly to improve (known as “Hard to treat”). With access to ECO funding more energy efficiency measures can be installed and more people can receive the benefits. ECO can also work alongside the Green Deal – reducing the cost to help achieve the ‘Golden Rule'.

ECO is split into three parts:

The Home Heating Cost Reduction Obligation (HHCRO or 'Affordable Warmth')
The HHCRO or 'Affordable Warmth' Obligation aims to provide heating and hot water saving measures, insulation and micro-generation technologies (EXCLUDING Solar PV) to low-income and vulnerable households.

Carbon Emissions Reduction Obligation (CERO)
The CERO aims to provide funding towards “Hard to Treat” cavity wall properties (e.g. those over 3 storeys, with cavities less than 50mm wide, requiring significant remedial works before insulation can take place or requiring non-standard materials or techniques to insulate) and towards solid wall properties (both internal and external wall insulation). ECO funding makes these expensive improvements more affordable and cost effective.

Carbon Saving Communities Obligation (CSCO)
The CSCO provides funding towards insulation measures for households within specified areas of low income. In addition, 15% of this element of ECO must achieved through helping those low-income and vulnerable households in designated rural communities.

Everwarm has direct access to ECO funding through several of the obligated parties (energy companies). This means we can quickly assess the cost (if any) of the energy efficiency improvements to your home/housing stock and, if agreed, install them within a short period of time.

The Green Deal is aimed at helping homes and businesses reduce their energy consumption, save them money and help the UK government meet its carbon reduction and renewable energy targets. It can cover the up-front cost of recommended energy efficiency improvements and the homeowners or energy users can repay the cost back through their energy bills via the anticipated savings on their energy bills. This repayment option is only available if the cost of the improvement over the guaranteed lifetime is equivalent to or less than the anticipated cost of the energy usage savings you will make if it is installed – this is known as the 'Golden Rule'.

How Green Deal Works
Green Deal can be split into four stages:

Stage 1 – The Assessment
A Green Deal Assessor (GDA) will visit your property to help identify what energy efficiency improvements could benefit you the most. The GDA will be able to tell you which of the recommendations are likely to be most cost effective and also be able to offer advice on how the repayments will work. The GDA will then produce a report outlining your options which will show the improvements that meet the 'Golden Rule' or how much you need to contribute in order for it to meet the 'Golden Rule'.

Stage 2 – The Finance
Once you have your report a Green Deal Provider can arrange the finance and fund the improvements. If you go ahead with the improvements outlined in your report, you will be required to sign a Green Deal Plan which is essentially a contract between you and your Green Deal Provider.

Stage 3 – The Installation
Everwarm are accredited Green Deal Assessors, Advisors and Green Deal Installers with access to Green Deal Providers to arrange the finance.

Along with your chosen Green Deal Provider, we will arrange a suitable time with you to come and carry out the agreed work in your Green Deal Plan.

Stage 4 – The Repayment
You’ll only pay back the cost of your improvements over time through savings on your energy bill. Your energy supplier will pass on details of your payments to your Green Deal Provider and the amount you pay back will be no more than what you save on your bill after the improvements have been installed.

The way the Green Deal Finance is arranged means this is not the same as a conventional loan. The charges are attached to your property so, if you move out, the new occupant will pick up the charge whilst also benefitting from a more energy efficient property. Interest is charged on these payments but the rate is fixed and you will be shown a full schedule of repayments before you are asked to sign up to your Green Deal Plan.

By installing solar panels you can not only help lower your annual energy bills but you could also get money from your energy supplier.

The Government’s Feed-in Tariff means you’ll be paid for any electricity you generate (even if you use it yourself) and for the surplus electricity that gets exported to the grid.

How does the Feed-in Tariff work?
The Feed-in Tariff (FIT) can benefit you in three ways:

Generation Tariff
Regardless of whether you use the electricity in your home or not, your electricity supplier will pay you for every unit your solar energy system generates. The current tariff rates can be found here http://www.energysavingtrust.org.uk/Generating-energy/Getting-money-back/Feed-In-Tariffs-scheme-FITs#rates

Export Tariff
It is very likely that you will generate more electricity through your solar panels than you’ll use. The excess electricity is automatically exported to the grid and your electricity supplier will pay you an additional amount for that. The current tariff rates can be found here http://www.energysavingtrust.org.uk/Generating-energy/Getting-money-back/Feed-In-Tariffs-scheme-FITs#rates

Reduced Energy Bills
Generating your own electricity will generate you money from FIT rates as well as saving you money through lower energy bills. Any electricity generated by your own solar panels will feed directly into your home, supplying power for any appliances you use during daylight hours. With electricity prices rising year on year, this is a huge incentive to install solar panels as it means it becomes cheaper to use household appliances during the day instead of in the evening or overnight.

How do I register?
Registering for the Feed-in Tariff is a straight-forward process that Everwarm can help you with.

Once Everwarm has installed your system we will register you on the central Micro-generation Certification Scheme (MCS) database and send you a certificate confirming MCS compliance.

Once you have the certificate, you just need to tell your chosen Feed-in-Tariff supplier (this can be any utility company, not necessarily the company you currently pay for your electricity) that you wish to register for the Feed-in-Tariff.

You will need to send them:

• A completed application form.

• The MCS certificate.

• The Energy Performance Certificate that demonstrates your home has an energy efficiency rating of D or higher.

• A receipted invoice as your proof of ownership.

Your chosen FIT supplier will then:

• Double check your installation with the MCS database and undertake some other eligibility checks.

• Confirm your eligibility and the date from which you will be eligible for payments.

• Add you to the Ofgem Central FIT register, which records all installations in the FIT scheme.

• Confirm with you if and when you will need to provide meter readings and when they will make FIT payments to you.

Claim up to £7,300 through the new phase of the Scottish Government’s Green Homes Cashback scheme. The Scottish Government is offering owner occupiers, private and social tenants and private sector landlords a grant towards energy efficiency measures that are recommended in the property’s Green Deal Advice Report.

Up to £500 is available for a boiler, up to £400 is available for insulation measures, and up to £300 is available for other measures like double glazing or draught proofing. For installations of solid wall insulation 75% of the total cost up to £6,000 is also available. In addition to this up to £100 is available towards the cost of the Green Deal Advice Report if applicants install and claim for a measure. 

Solid wall insulation: 75% of the total installation cost up to £6,000