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• 23 Nov

  ECO3 Invoice Finance Energy Company Obligation

  

  Energy Company Obligation (ECO3) is a government energy-efficient scheme that operates in Great Britain. It was launched to help reduce carbon emissions and to alleviate fuel poverty. It achieves this by delivering energy efficiency measures to residential premises. If you are an installer of ECO3 measures seeking invoice finance, there are companies on our panel that are ready to provide that funding.

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  The ECO Scheme

  The ECO scheme began in April 2013 and has been updated over time. The latest policy is ECO3 which started on 3rd December 2018 and applies to measures completed from 1st October 2018. The policy is formed from the Home Heating Cost Reduction Obligation (HHCRO).

  ECO3 Invoice Finance

  ECO3 is not a grant or loan scheme, unlike the earlier Green Deal initiative. Instead, it is up to the energy companies to determine which measures they choose to fund, to what level, and via which installers.

  Installer Invoice Financing To Intermediary Funders

  The installers could be involved with the installation of insulation for walls, floors, lofts or boiler improvements etc. Also, they may be providing their services via "intermediary funders" which sit between them and the main energy providers. There can be a gap between completing the work and receiving payment from the intermediary funder. Invoice finance against these invoices is not available from some financiers, however, we have a funder that specialises in helping these installers get prepayments against these invoices when they are raised.

  Set-Off Clauses

  Our funding partner has encountered set-off clauses within the contracts between the installers and the intermediary funders. However, they have had some success in agreeing for this to be removed in return for operating small retentions to account for any work on jobs that were not fully signed off by OFGEM. In this way, they are able to overcome the issues that others face in funding these invoices.

  By Glenn Blackman