Where does Insulation Grant funding come from?

UK Energy Suppliers who have more than 150,000 customers and who supply more than 300 GWh of electricity and 700 GWh of gas are obligated to pay for energy efficient upgrades, such as insulation, in domestic properties. This is known as the Energy Company Obligation (ECO) which is now in it’s third phase. The six main energy suppliers, British Gas, E.ON, npower, EDF, Scottish & Southern and ScottishPower are all obligated under ECO and were also involved in previous grant schemes such as CERT (Carbon Emissions Reduction Target). They all have different targets to meet in terms of how much carbon needs to be saved and this depends on their individual market share i.e. the number of customers. Other suppliers obligated under ECO are:

• Shell Energy
• Co-operative Energy
• Utilita
• OVO
• Utility Warehouse
• Bulb
• Green Star
• Avro Energy
• E
• Green Network
• Octopus Energy

Even though Energy Suppliers must pay for Insulation grants, they are effectively paid for by domestic householders because a small charge is added to their gas and electricity bills. In 2018, approximately 11% of an average dual fuel energy bill went towards environmental and social obligation costs. A proportion of this charge is used to fund the Energy Company Obligation grant scheme. ECO was created by the Department for Business, Energy & Industrial Strategy (BEIS) and is currently overseen by Ofgem. There are a wide range of insulation measures that can be funded under the scheme including Internal/External Wall Insulation, Loft Insulation, Cavity Wall Insulation and Room in Roof Insulation.

To claim an ECO grant, householders can apply directly to one of the energy suppliers listed above who would then appoint one of their contractors to carry out a survey and install the insulation. You do not need to be a customer of the energy supplier you choose to carry out the work. Alternatively, you can apply through a company such as EnergyLink who have a network of approved installers operating throughout England, Scotland and Wales. Each installer typically uses one or more energy suppliers to fund the work. They can also obtain insulation grant funding from brokers or agents who act on behalf of the energy suppliers. To see if you qualify for a grant, simply complete our application form. We will then allocate you to an approved local installer who will contact you to arrange a free, no-obligation survey.