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Proposed Energy Efficiency Scheme (ECO Plus) – Supply Chain Market Research Key Findings

12th Jul, 2022

Gemserv was commissioned by EDF, E.ON, OVO Energy and ScottishPower to undertake an assessment of the readiness of the energy efficiency supply chain to scale up. The research was undertaken to provide an evidence base for the proposed £1 billion ECO Plus scheme.

The report has been shared by our clients with the Department for Business, Energy and Industrial Strategy (BEIS) and industry to inform the approach to supporting able to pay households access efficiency measures.

Gemserv received over 130 responses from industry to an online survey and conducted six in-depth interviews. ECO plus was described to respondents as a scheme that would aim to install energy efficiency measures to the able to pay sector, utilising many of the existing ECO scheme administrative and delivery structures, but with part funding for households. This survey considered an ECO plus scheme which would provide an additional £1 billion per annum for energy efficiency installations, via funding from the UK Government effectively at least doubling the scale of the existing ECO scheme.

It is hoped that this research will inform the Government’s approach. The key findings were:

  • The energy efficiency supply chain is operating with some spare capacity.
  • Respondents felt that proposed introduction of ECO plus would have a highly positive impact on job creation.
  • Over 12 months, respondents are confident that they could increase the capacity between 50% and 100% with the availability of ECO plus funding.
  • The main challenge associated with scaling up was the availability of a qualified workforce.
  • ECO plus should be a long-term programme (5 years or more).
  • The introduction of ECO plus would have a positive impact on business growth, employment and investment in innovation.
  • The current ECO delivery mechanism is viewed as an effective way to deliver an able to pay scheme such as ECO plus.

The survey findings reflect the supply chain’s view of their own capacity to deliver additional installations and no separate independent assessment has been undertaken of this, either with respect to the staffing and material resources which would be required, or the volume of suitable properties.

This report provides an overview of market research undertaken between 14 June 2022 – 28 June 2022 to seek views from the energy efficiency supply chain on the proposed ECO plus scheme. Responses were collected anonymously.

Authors

Samantha Shea

Head of Policy Insights and Engagement

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