The Government has announced plans to change the main funding stream for energy saving home improvements – the Energy Company Obligation (ECO) Scheme.
YES Energy Solutions have been using ECO funding to reduce the cost of installations for eligible customers ever since the programme was first launched back in January 2013. However, the Government’s proposal to reform the scheme is likely to affect the future of energy saving grants for the whole industry.
The ECO scheme was designed to provide funding for home insulation in properties that are difficult to treat (e.g. have solid walls or random cavities) and grants for householders on certain state benefits that require boiler and central heating upgrades.
Administered by the UK’s major energy companies, ECO is paid for by consumers - this is referred to as a 'Green Levy' on our energy bills.
Due to political and consumer pressure regarding the cost of energy, the Government announced that they would ‘roll back Green Levies’ which they predict will reduce domestic fuel bills by approximately £50. This announcement has directly impacted ECO and in particular the funding mechanism that underpins the current programme.
The proposed changes to the scheme influence the energy saving targets each energy company is obligated to meet. In some cases it could help them achieve their targets more easily, which means they don’t need to release as much funding to their suppliers.
For example, the Government have propose to reduce the current Carbon Reduction target by 33% which means that there could be less funding available for products like solid wall insulation in the future.
What we do know is that there will still be funding available for energy saving installations, but we will not know the amount until the Government’s consultation has been finalised in early summer.
We would like to reassure our existing customers that it is very much business as usual at YES Energy Solutions, but should you wish to discuss your forthcoming installation with a member of the team please call: 01422 880100.
Despite the proposed changes to ECO, we can still provide a range of financial support to make energy saving home improvements affordable. Find out more here.
If you contribute towards the cost of your installation, you could be entitled to cash-back from the Government. However, this is a limited offer and one that is only currently available until June 2014. The Government’s Cashback scheme is designed to pay out two thirds of your contribution up to a set limit per installation.
For more information on these offers, the changes to ECO and the funding we currently have available, call YES Energy Solutions: