UK ECO Progress

A Steady Climb: The Progress of ECO in the UK's Energy Landscape

In the quest for a more energy-efficient and environmentally sustainable future, the UK’s Energy Company Obligation (ECO) scheme has been making significant strides. With the release of the latest quarterly statistics for the period ending September 2024, it is clear that the initiative continues to evolve, adapting to the changing energy landscape of Great Britain.

Understanding ECO

The Energy Company Obligation is a government energy efficiency scheme in Great Britain, aimed at reducing carbon emissions and tackling fuel poverty. Since its inception, ECO has facilitated the installation of millions of energy-saving measures across residential properties.

The programme is funded by energy suppliers, who are mandated to meet annual targets, thereby placing the onus on them to facilitate energy efficiency.

Progress to Date

As of the third quarter of 2024, around 4.1 million measures have been installed in approximately 2.5 million properties under the ECO scheme. This underscores the vast reach and impact of the initiative.

Specifically, under the current phase known as ECO4, which began in April 2022, roughly 666,900 measures have been fitted into 207,700 households. These measures span a variety of installations, ranging from insulation improvements to heating system upgrades.

The recent quarter, July to September 2024, saw a total of 77,800 measures installed. However, this marks a 13 per cent decrease compared to the previous quarter. Such fluctuations are not uncommon and often reflect the cyclical nature of installation schedules and administrative processing times.

Diversification of Measures

ECO’s approach has continuously evolved to adapt to emerging technologies and strategies. Notably, the composition of installed measures has shifted in favour of ‘Other Heating’ categories under the ECO4 phase.

This category, which includes heating controls, electric storage heating, and district heating systems, makes up nearly half (49 per cent) of the total measures installed by the end of the third quarter of 2024.

Interestingly, heating controls constitute 98 per cent of the ‘Other Heating’ measures, highlighting a growing focus on the efficiency of heating systems as a critical area. Meanwhile, insulation, once the cornerstone of ECO measures, accounted for 15 per cent during the same period.

Moreover, the scheme’s flexibility has been enhanced, particularly with the increased role of Local Authorities in determining eligible households through the ‘Flexible Eligibility’ mechanism.

This mechanism allows up to 50 per cent of a supplier’s obligations to be met through flexible criteria, providing a broader scope for tackling fuel poverty. By the end of the third quarter of 2024, 134,500 measures had been delivered through this approach.

Regional Disparities and Future Outlook

While the overall progress of the ECO scheme is commendable, regional disparities remain a point of concern. Some areas have seen more substantial uptake and benefits compared to others, often influenced by regional energy policies and local authority involvement. Addressing these disparities is crucial to ensuring that all households benefit equally from the scheme's advantages.

Looking ahead, the challenge will be to maintain momentum and continue innovating within the scheme. With energy efficiency playing a crucial role in achieving the UK’s broader climate goals, the ECO scheme will undoubtedly remain at the centre of policy discussions.

Further advancements in technology, coupled with regulatory adaptations, will shape the future iterations of ECO, ensuring it remains an effective tool for carbon reduction and energy efficiency.

Conclusion

The Energy Company Obligation in Great Britain is a vital component of the UK’s strategy to enhance energy efficiency and tackle climate change. Its progress to date demonstrates a commitment to these goals, with millions of households benefiting from improved energy-saving measures.


As the UK continues to navigate its energy transition, ECO will be instrumental in ensuring that the shift is both just and sustainable, addressing the needs of the most vulnerable while keeping homes warm, costs low, and emissions even lower.

This article aims to provide a comprehensive overview of the ECO scheme’s progress, drawing upon key statistics and trends detailed in the data we received.