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ECO Update

ECO3 funding for local authorities and how you can benefit from it.


The document attached looks at the latest iteration of the Energy Company Obligation (ECO) which is now called ECO3.Launched In April 2013 the obligation is a national scheme designed to improve the energy efficiency on domestic properties in England, Scotland and Wales. ECO3 is a legal requirement for major energy companies who are required to provide funding for the installation of energy saving measures in certain households.

ECO3 remains the main funding stream for domestic energy efficiency and it helps cover, or contribute, towards the cost of insulation and heating upgrades, supporting thousands of residents reduce their impact on the environment and keep warm for less.

ECO3 has gone through many changes since its inception, but it is still the primary funding channel for retrofit measures and schemes for domestic properties. The Government’s recently published Clean Growth Strategy refers to a figure of £3.6 billion of investment to upgrade around a million homes through ECO, and extend support for home energy efficiency improvements until 2028 at the current level of ECO funding. The latest phase now offers exciting opportunities for local authorities to really drive activity in their target areas and extend the scope of support available

Over 250 local authorities have now passed climate emergency declarations and energy efficiency must be at the heart of those if the ambitious targets which accompany many of them are to be met. But energy efficiency work should not be limited to only hose with a climate emergency declaration – all need to ensure that the council’s estate is as energy efficient as possible.

The APSE Energy vision of ‘the municipalisation of energy’ means local authorities having a greater role in their local area with benefits for local citizens, businesses and the council itself. Fully using ECO is one way of meeting that vision.

I hope you find this report adds to your understanding of ECO and helps you to access further support. 

During these times of austerity and increasingly tight budgets, local authorities need to be vigilant and make the most of what is available to get projects off the ground and make their budgets deliver further benefits.

Having previously published ‘What is ECO and Green Deal’ and ‘ECO funding for local authorities’ we along with YES Energy Solutions have now produced this latest updated version focussing on ECO3 to cover the latest changes and opportunities for local authorities.

Our new guide gives a clear overview of what ECO is, how to get involved and more importantly – how to use it to the advantage of both local authorities and local communities.

This publication will be available to all APSE Energy members without charge and a link will be sent separately. Non APSE Energy members may purchase the document. For further information contact Phil Brennan, Head of APSE Energy on 0161 772 1810 or at pbrennan@apse.org.uk.




Promoting excellence in public services

APSE (Association for Public Service Excellence) is a not for profit unincorporated association working with over 300 councils throughout the UK. Promoting excellence in public services, APSE is the foremost specialist in local authority frontline services, hosting a network for frontline service providers in areas such as waste and refuse collection, parks and environmental services, cemeteries and crematorium, environmental health, leisure, school meals, cleaning, housing and building maintenance.






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