So which energy companies are worth approaching for ECO funding?
So which energy companies are worth approaching for ECO funding? Aug 25, 2015
The latest Ofgem report provides a clear illustration of the progress of Energy Companies in achieving their ECO 2 targets, and which are more likely to be receptive to proposals from installers.
Since the industry entered the ECO 2 delivery period (1st April 2015 – 31st March 2017), Energy Companies have made significant head way in achieving their obligations.
ECO is either delivered directly by Energy Companies or funding is assigned to Green Deal Providers (like YES Energy Solutions) in bite size chunks as delivery contracts.
If you’re an installer looking for funding, it’s worth looking at which Energy Companies are leading the race and which are more likely to assign new delivery contracts to Providers.
The tables below shows measures notified by Ofgem to the end of June 2015 and approved by the end of July 2015. It includes estimated surplus measures that may be carried over from ECO1 to ECO2. It also provides details of the Provisional Solid Wall Minimum Requirement (PSWMR) where Energy Companies must fund a proportion of solid wall insulation measures as part of their delivery.
ECO 2 Overall Progress (All Energy Companies):
ECO 2 Individual Energy Company Progress:
These tables only cover the first delivery period of ECO 2 (from 1st April 2015 to 31st March 2016). However, if an Energy Company have achieved over 100%, it’s reasonable to assume this will go into the second delivery period (1st April 2016 – 31st March 2017).
BGT - British Gas COP - The Co-Operative Energy EDF - EDF Energy EON - E.On FUL - First Utility OVO - Ovo Energy (newly obligated under ECO2) NPW - Npower SPW - Scottish Power SSE - SSE UTA - Utilita (newly obligated under ECO2) UTW - Utility Warehouse
This data shows that all of the Big Six have delivered over 70% of their CERO obligation for Phase 1 of ECO 2 in the first three months of delivery. The majority of the progress (delivery) is attributed to surplus measures, i.e. over delivery in ECO 1. E.ON are the clear front runner, and have delivered over 160% of their Phase 1 target already (surplus actions from ECO 1 contributed to 140%, meaning that they had met the Phase 1 target before ECO 2 even began!) The smaller, newly obligated companies have yet to make significant progress - however, they do have significantly less carbon savings to deliver.
CSCO is more of a mixed bag with four of the Big Six already meeting their Phase 1 of ECO 2 targets. Again E.ON has exceeded its target, having already delivered over 200%. This suggests that they have fully met their ECO2 target for March 2017, and are unlikely to be issuing further CSCO funding.
Three Energy Companies have achieved their full Phase 1 of ECO 2 CSCO Rural target (British Gas, EON and SSE), and providing the surplus measures are approved E.ON and SSE have over delivered on ECO 1 to such an extent that they have met their full ECO 2 target for March 2017 already. The newly obligated companies are more likely to need a helping hand to meet their CSCO Rural targets.
So, HHCRO is where it’s at! Only EDF have achieved Phase 1 of ECO 2. It seems likely that all Energy Companies will continue to offer funding for this obligation. This suggests the new rules regarding eligible boilers is having an impact on the quantity of measures being submitted.