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Gemserv to lead on research for £1 billion energy efficiency scheme – ECO plus

16th Jun, 2022

On behalf of EDF Energy, Scottish Power, OVO, and EON, Gemserv is conducting research that will feed into BEIS for proposals for a new £1 billion energy efficiency scheme (known as ECO plus) for the able to pay sector. The research aims to demonstrate that there is UK insulation supply chain capability for a scheme of this size.

Our experience of the market over the last two decades has shown that supplier obligations have been incredibly successful in installing millions of measures in peoples’ homes and are a proven delivery mechanism. We believe an expansion of the Energy Company Obligation (ECO) framework funded by Government would enable many more households to benefit from improvements to the fabric efficiency of their home. Learning lessons from previous attempts to increase investment in energy efficiency highlights the need for such an expansion to have longevity.

The purpose of this survey is to gain a high-level understanding of how quickly the existing ECO supply chain can ramp up to delivering an enduring programme of around £2bn per annum. It is assumed that the ECO top-up (otherwise known as ECO plus) will not only cover lower cost loft and cavity wall insulation but also start to address the 7.5 million solid wall homes that are currently uninsulated today. It is also assumed that measures funded under the ECO plus scheme would be available to a much broader set of households than the existing ECO scheme focus on more vulnerable customers, and with part funding of measures – hence an additional £1bn per annum of funding could deliver significantly more than £1bn worth of efficiency measures.

We invite insulation manufacturers, contractors and wider retrofit supply chain to complete a short online survey to support this important piece of market research. The survey is available here and should only take five minute to complete it (note it will close on 28th June 2022).

Authors

Samantha Shea

Head of Policy Insights and Engagement

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