Energy Company Obligation (ECO) Funding aims to help low-income households reduce energy bills through specific energy-efficiency services, predominantly heating and insulation measures. ECO-Funding under the ECO4 scheme is available for projects in Newtown, Powys, and other areas served by the main Welsh registered energy suppliers. All local authorities in these areas are encouraged to consider applying to ECO-Funding on behalf of their communities. Applications can be made at any time, and the energy companies have committed to investing a minimum of £250 million per year in the scheme until March 2026 and to working with local authorities.

Projects must be focused on delivering measures that are categorised as ‘primary measures’ within the ECO4 guidance and reduce the risk of fuel poverty. To achieve this, the investment is expected to be targeted at projects that can be robustly evidenced to deliver benefits to households and communities in the long term, whether through direct financial savings, job creation, training and apprenticeship opportunities, renewable energy developments, or infrastructure improvements. Projects that deliver wider community benefits, such as coastal community adaptation, as well as those that demonstrate local collaboration and partnership working, are particularly encouraged.

2. Understanding ECO Funding

ECO funding covers a range of micro and small scale energy efficiency projects that directly benefit eligible fuel poor domestic consumers and are located in Great Britain – England, Wales or Scotland. ECO funding can support home energy efficiency improvements using a wide range of measures, including: • insulation, such as solid wall, cavity wall, loft, and under-floor • heating, including fossil-fuel heating, electric heating, heat pumps, and district heating • renewable technologies including solar thermal and electric, biomass boilers and heat pumps.

Project Deliverers apply to the ECO programme for funding on behalf of householders and other domestic customers. Help for Household’s main Customer Group is fuel poor households. For income-related and other government-defined reasons, these households may be unable to provide the required funding contribution for an energy improvement, or may be facing an imminent risk to their health or wellbeing. However, funding is also available for other Customer Groups, including those living in properties rated ‘E’ or below under the Energy Performance of Buildings (England and Wales) Regulations 2012 (as amended). Housing Association properties are also eligible. ECO is administered by the UK Government’s energy regulator, Ofgem. The department for Business, Energy and Industrial Strategy (BEIS) establishes the policy at a UK level, and the Welsh Government is responsible for policy in Wales. Details on the operation of ECO in Wales can be found on the Welsh Government website.

2.1. What ECO Funding Covers

Three key technologies and measures are eligible for ECO funding: External and Internal Solid Wall Insulation, Air Source Heat Pumps, and Energy Company Obligation Flexibility. An overview of each category—including its basic requirements and anticipated funding levels—is provided below.

External and Internal Solid Wall Insulation Solid wall insulation reduces air leakage within the home and offers a greater standard of energy efficiency than cavity wall insulation. ECO funding for solid wall insulation must meet the relevant minimum U-values, as calculated by the Welsh Government — the latest values are available from the Welsh Government Energy Efficiency Programmes website.

Air Source Heat Pumps Air source heat pumps convert thermal energy from the outside air into usable energy, even in colder conditions. Funding is available for air-to-water pumps that meet minimum coefficient of performance (COP) requirements and air-to-air pumps that comply with minimum heat output requirements at average winter temperature.

Energy Company Obligation Flexibility ECO Flex is designed to assist homeowners in the privately rented and owner-occupied sectors who are vulnerable or at risk of falling into fuel poverty. Similar to the main ECO scheme, applicants must complete an application form, but additional paperwork is required to confirm eligibility.

Funding levels vary by measure. Typical estimates for the main technologies covered are: Solid Wall Insulation External: £14,000 Internal: £13,000. Air Source Heat Pumps: £7,000. ECOs: £3,500 (on average).

2.2. Eligibility Criteria

Applicants should be Innovate UK-registered charities, social enterprises, or community interest companies, with either the sole function of delivering energy efficiency measures, or a wider range of activities in the community, but which are not connected with the Eco, such as health or employability support. The applicant organisation must have their registered office in Wales, and typically the installed measures lead to an improvement within the Energy performance Certificate (EPC) ratings of private sector dwellings. Householders must be in receipt of at least one qualifying benefit or have a total household income below the minimum level of poverty. However it should be noted that Home Energy Efficiency Project: Arbed (HEEP: A) operated a life-cycle costing approach, which, under extremely limited conditions, allowed applicants to install measures that did not meet the prescriptive cost-effective requirements.

2.3. Application Windows and Timelines

The Energy Company Obligation (ECO) scheme offers funding windows when you can apply for help with eligible energy efficiency measures. Unlike many funding schemes, ECO is not open all the time. You can only apply when the energy suppliers have a responsibility for energy efficiency in place with the Government and a delivery phase has been launched with details made available to Local Authorities and others. These periods are often referred to as ECO phases.

The details of each ECO phase are updated on the Energy Saving Trust (EST) website, making it a good idea to check there regularly. To make it even easier, you can register your interest in the funding at the top of this guide. When a new phase is confirmed you will receive an email to remind you to apply. If you are looking at this guide during a current phase, you should be able to find all necessary details below.

3. Preparing Your Application

Critical to success is demonstrating that a well-prepared application will benefit the region and the proposed energy efficiency project. A brief checklist indicates the main elements of a strong bid. These can then be addressed in more detail.

Applications must include the following:

1. A concise description of the project type, proposed works, requested funding, and start and completion dates. 2. A declaration of whether the project has received or expects to receive funding from elsewhere. 3. A list of the main categories of work to be undertaken, such as boiler upgrades, insulation works, external lighting, and so on. 4. A breakdown of the total project cost using the headings given in the application form, with costs per funding source. 5. An explanation of how the project helps deliver local or community benefits, for example, by providing training or enhancing the environment or community. 6. Additional information to support the application or to reflect community needs, such as local authority policy initiatives around climate change and energy efficiency, housing situation and needs assessments, or supporting endorsements from community groups, the local authority, or housing associations. 7. A statement indicating whether the project involves the installation of renewable energy technologies. If so, proposals must comply with the relevant Welsh Government /Electoral Commission planning guidance. 8. A statement explaining how risks associated with delivering the project have been identified and managed, including alternative solutions and sources of funding in the event of cost increases or delays.

Applications are assessed against these criteria: likely contribution to Energy Companies Obligation targets in the region; planned outcomes and benefits; cost-effectiveness; arrangements for project delivery; and the extent and quality of partnership working. Typical evaluation and decision timelines are around two to three months.

3.1. Required Documents

All ECO applications require supporting documents to confirm the basic eligibility of the applicant and the project, summarised in the table below. Where projects receive less than £10,000 in grant funding, it may be possible to have these documents checked by your energy supplier rather than submitted formally with the application. Doing so can simplify the application process and speed up the assessment.

| Document | Required for | Prepared by | Notes | |----------------- |-------------------------- |------------------ |-------------------- | | Site Ownership or Landlord Letters | All projects | Applicant / supplier | Proof of ownership or permission to carry out work at the site | | Green Deal Advice Report | All projects installing measures supported by the Green Deal | Installer or supplier | The report should be made available to installers and suppliers in the Green Deal register | | External Wall Insulation Technical Data Sheet | All projects installing external wall insulation | Installer or supplier | Must be provided by the installer or supplier to the applicant | | DNO Application Reference Number | All projects with an electrical connection to the DNO network and a budget of £10,000 or more | Installer | For projects with a budget of £100,000 or more, a final connection quote to the DNO must be requested and retained; for projects with a budget of £250,000 or more, a temporary DNO connection approval must be requested and retained | | Local Authority / Building Control Approval | All projects for which such approval is applicable | Installer | For projects with a budget of £10,000 or more, build signals must be gained prior to the drawdown of grant funding |

3.2. Project Scope and Budgets

A detailed project scope is essential for a successful application. Applicants must specify the proposed Eco project, explaining the relevant measures. More comprehensive proposals are more likely to be successful. Despite the name, ECO funding can support non-ECO projects, as long as they are energy efficiency-related, can be completed during the funding window, and represent a reasonable use of public money. Applicants should also state the estimated cost of the project and any funding other than ECO that they are seeking. Although projects can be funded in principle with a budget of less than £20,000, all elements of the proposal should be fully considered and justified.

While Powys County Council is not usually engaged in the delivery of Eco grants, the work needs to be delivered in a cost-effective way to maximise the benefits of the grant allocated.

3.3. Community and Local Benefits

Highlighting local or community benefits will increase your chances of receiving ECO funding. Although the scheme's primary aim is to improve energy efficiency and reduce heating costs, costs are only part of the picture. ECO schemes can generate local jobs and training opportunities, and help the community as a whole by securing and insulating local homes.

Punter and applicant alike should consider ways to strengthen the local and community aspect of a project by: – identifying stakeholder groups and individuals who can comment on the benefits of the project, or who may wish to make use of the improvements being funded – ensuring that the project will benefit people living nearby (for example, by being able to use local broadband services) – listing the agencies involved in delivering the project and explaining how their participation adds value and benefits the community – demonstrating a share of the budget or specific costs that reflect local priorities or support local delivery in cash or kind (for example, volunteer time).

4. Step-by-Step Application Process

The application process for ECO funding can be completed in four steps. The first involves registering your interest in applying. The second requires completing a detailed application form supported by accessible background information. The third step involves providing supplementary evidence that satisfies the ECO funding requirements. The final step is the submission of the form and evidence to the relevant local council or authority. Tracking the application can also enhance feedback and accelerate decision-making.

The first step is simple: inform the relevant local council/authority that you are considering submitting an application for ECO funding. Doing so ensures the application receipt and decision-making process is as smooth and timely as possible. The second step is to complete the application form. The questions in the form resemble those covered during the project preparation and usually require concise but substantive answers. They aim to ensure consistency across submissions, allowing for rigorous analysis by different businesses and local authorities.

The third step involves supplying several defined pieces of supplementary information and evidence to support the application. The requirement for supporting information is generally minimal because the project itself is already an economic and community benefit. However, references and quotes that bolster the financial or community impacts of the project can speed up assessment and approval. The fourth and final step is to submit the application form with the supporting evidence. Sending everything to the relevant local council/authority allows for tracking throughout assessment and decision-making.

4.1. Registering Interest

To initiate the application process, register interest through the online portal. A brief online form collects key project details, including objectives, proposed activities, contact and location information, and financial position. If desired, applicants can also indicate preferred delivery partners or funding allocations.

Information from the online registration informs the subsequent application form and community grant funders in Wales. After registration is complete, applicants receive updates, including when they can access the full application form.

4.2. Completing the Application Form

The first substantive task is completing the application form, The form can be downloaded from the Welsh Government’s website (link). It varies in length and complexity depending on the size and scope of the proposed project, an important consideration when deciding what to submit. Careful attention should also be paid to the wording of each question, since applications are only evaluated against the information provided.

The form must be accompanied by suitable evidence — typically in the form of reports, partnerships and letters of support, as detailed above. As for many funding applications, the people writing the application are not necessarily the ones delivering the project; very often, these are local organisations with the expertise, experience, and reputation to carry out the work. As a result, the application form may require justification of why a particular body has been chosen to lead delivery of the project or part of it.

4.3. Supporting Evidence and References

Supporting evidence and references bolster an application. A brief statement confirming submission of evidence is usually enough, although some schemes ask for specific evidence items to be sent in advance. Obtaining detailed letters of support from relevant parties—such as community councils and other stakeholders—strengthens the application. Securing high-profile references is also useful, especially for larger applications. Support from the local council and the area’s Assembly Member or Member of Parliament adds weight, as do sponsorship and joint applications from groups such as Business Improvement Districts. In general, applications are stronger where community input helps shape project scope.

Including supporting evidence on local needs complements mention of community climate change impact statements. Community-based evidence accumulated through local-body-supplied consultations (including British Gas’s round-table discussions) and local-bodies’ comments on annual extensive surveys and reports most relevantly address local needs, as do the Welsh Assembly’s area-regeneration initiatives for Newtown. Addressing leisure needs for all ages is essential for long-term use of new facilities and services. Participation in surveys coordinated by area councils and county bodies is vital, supporting all project investment and work types for Newtown and surrounding areas. Such consultations help identify what people value, thereby enabling appropriate facilities and services for residents and visitors alike.

4.4. Submitting and Tracking Your Application

Your final application should be submitted as a single PDF document, as outlined in the Application Form. After submitting online, the progress of the application can be monitored via the same link. With a large volume of applications each quarter, it is not possible to provide updates before a decision is made.

Those interested in applying are reminded to take care to follow all of the guidance and instructions and to ensure that they complete and submit all of the required supporting documentation.

5. Evaluation and Decision

How Projects are Assessed

Evaluation is based on a project’s merits, suitability and general quality. Action is undertaking an assessment procedure on a project-by-project basis, evaluating all aspects of an application – including the nature of works proposed, the benefits that the project would create and the strength of the supporting documentation. A successful project will: deliver energy savings in a cost-effective way based on the local energy register; involve works that are listed under the ECO measure list supported under ECO; and be the most timely solution to addressing fuel poverty, as demonstrated by the local authority performance in relation to fuel poverty.

Brief, simple applications from organisations that have a good track record of delivering energy efficiency works to vulnerable households will be assessed very quickly, while those that require more detailed scrutiny will take longer.

Typical Decision Timelines

Decisions on applications are normally made within 45 working days of the application being submitted in its entirety. However, applicants are encouraged to call Action and confirm the expected decision timescale before submitting an application; this estimate may be clarified or changed. Once a decision has been made, applicants will be notified, and details will also be updated on the Action website.

What Happens After Approval

Once an application has been approved, the relevant paperwork will be sent out. This includes an offer letter and terms and conditions of the funding for the applicant to sign. A purchase order will also be raised by Action and sent to the relevant contractor once the offer letter has been signed and returned.

Before works start, the applicant must inform Action and receive written confirmation that the works are approved. If a project does not commence within 12 months of the issue of an offer email, the offer may be withdrawn and the unspent funds reallocated to other applications.

5.1. How Projects are Assessed

Applications for ECO funding in Newtown receive a score based on criteria defined by Destination Newtown and the National Energy Action charity. A higher score increases the chances of approval. Key indicators include the number and proportion of units requiring installation, the level of certainty regarding installations progressing, the economic, community, and environmental benefits of the proposals, and the extent to which the projects help the most vulnerable in society.

Additionally, the presence of a consortium of stakeholders minimising risk and demonstrating a clear track record of delivery will positively influence scores, while the submission of multiple applications from the same area may reduce success rates across the board.

5.2. Typical Decision Timelines

Typical timelines for ECO funding decisions are not publicly available. However, Newtown applicants may want to check for relevant local information with the council or any colleges, businesses, or organizations with past experience applying for ECO funding.

5.3. What Happens After Approval

If a project is successful, ECO funding can lead to even more benefits. Projects or schemes that already support energy efficiency improvements can gain additional FREE funding through ECO. Householders may also be eligible for energy efficiency schemes supported through other funding or financing models, such as Green Deal.

After ECO funding is approved, it is the responsibility of the successful applicant to implement the project. The project cannot exceed the approved budget or the approved completion date (unless an extension has been formally agreed upon) and must comply with the conditions of the Offer Letter. If changes are required, both the Local Authority Building Control and the ECO funding provider must be consulted before proceeding. The successful applicant is also responsible for the information provided to the ECO funding provider, with any false, misleading or inaccurate information being grounds for withdrawal of the ECO funding approved.

Conditions may be placed on the ECO funding by the ECO funding provider, which the successful applicant must comply with. Failure to do so may jeopardise the funding, and could leave the applicant liable for any costs incurred. When returning an Offer Acceptance the successful applicant must confirm that they have read the appropriate terms, conditions and guidance for the ECO funding that they are applying for and that they agree to adhere to the terms, conditions and guidance.

6. Practical tips for Newtown

When applying for ECO funding in Newtown, engaging key local stakeholders early can accelerate and strengthen your application. The council has a long-standing interest in improving the energy efficiency of the housing stock and other buildings in the area, and is in a good position to act as a community anchor. It is also important that proposed projects align with Powys County Council’s draft Energy Strategy, approved in November 2022, which aims to work with other partners to undertake energy efficiency measures in council-owned and other community assets. If your project will not deliver cost savings but will provide wider community benefits, for example by acting as a pilot, make sure to highlight this consideration and to include letters of support from key partners.

Common Pitfalls and ChallengesWhen applying for ECO funding in Newtown, engage key local stakeholders early to accelerate and strengthen your application. The council has a long-standing interest in improving the energy efficiency of the housing stock and other buildings in the area, and is well positioned to act as a community anchor. Proposed projects should also align with Powys County Council’s draft Energy Strategy, approved in November 2022, which aims to collaborate with partners to implement energy efficiency measures in council-owned and other community assets.

6.1. Engaging Local Stakeholders

Proof-of-concept projects have a greater chance of success if local communities support them. Engaging key stakeholders in Newtown - including Newtown Town Council, Powys County Council, local assembly members, and potentially the new Senedd - can help amplify the project’s message and demonstrate credible local support. Informal discussions with these stakeholders before applying should, where possible, elicit their support and agreement to submit the project as a key local priority.

ECO funding is principally available to social-housing landlords and networks. Therefore, establishing and engaging with local networks of housing associations, Registered Social Landlords, or Local Authorities within reasonable reach of Y Drenewydd is also advisable at the earliest opportunity.

Communicating the plans for Y Drenewydd in a visually arresting and articulate way will help ensure that they are embraced and disseminated widely within Powys County Council. Links to the project information on websites and social-media channels used by the various organisations also help embed the project in the minds of decision-makers and local residents alike.

6.2. Aligning with Powys Policies

ECO funding is designed to achieve the aims of Energy Efficiency in Powys; it supports local solutions to help address fuel poverty and reduce carbon emissions. Developing energy-efficient buildings is an objective of the Powys Climate Change Strategy and Action Plan, and it's also identified as a priority in communities including Newtown. Projects that align with local policies are likely to demonstrate greater value-for-money and attract broad-based support, resulting in successful applications.

Engaging with other stakeholders such as local authorities, social landlords and local providers early in the development phase will help achieve these aims. Stakeholders may be interested in contributing funds to specific projects, as projects with a cost-benefit more than 4 or 5 to 1 – that is for every £1 of grant funding spent, more than £4 or £5 of benefit to society is achieved – and also able to attract resources from outside of Powys.

6.3. Cost-Benefit and Community Impact

Cost-benefit assessment and community impact represent another opportunity for Newtown (Y Drenewydd) applicants to boost their chances in an ECO application. Ideally, projects should balance investment with benefits in terms of energy cost and carbon-dioxide savings, and express interest in engaging with the local community or improving its wellbeing in an area where Newtown's multiple requests for ECO funds might be attractive to bids. Making clear that the scheme's benefits extend beyond the sheer numbers is a plus. Projects that create job and training opportunities in the area for stock- or home-grown labour—or simply state a desire to involve the local community—would have wider appeal.

Involving the community through stakeholder engagement or partnership is also beneficial. A link with the local Council is desirable, particularly if the scheme fits in with the Powys Energy Efficiency Strategy. Mentioning captive community co-funding would further strengthen the application. Exploiting the still-uncertain possibility of Welsh Assembly funds for team-projected CapEx increases, or for combination projects that go beyond ECO requirements, could likewise add weight to the proposal.

7. Risks, Challenges, and Mitigation

Common pitfalls include submitting a poorly considered application, insufficient supporting evidence, or an unsuitable scheme. The application should be deadlines, including eco funding deadlines, community stakeholders, local policies and priorities, and any other aspects required or advised by Powys County Council through their policies. Attention to detail facilitates smooth handling of the application when it reaches the funding provider. The primary challenge is generally simply completing the application on time. The final deadline for ECO Phase 3 funding is in March 2026, so registers of interest should ideally be submitted three to six months in advance.

A common source of funding success is the clear demonstration that the project will be widely beneficial to a community or others. Applications benefiting multiple community-centre users, for example, can attract significant interest. It is worthwhile to articulate the broader context shaping local energy policy and strategy and cover wider aspirations of national policies. Proposals that have featured in existing energy studies or assessments, partner with local energy companies or utilise their services, or create and submit a wider community-energy-action plan as part of their funding application can attract positive attention.

7.1. Common Pitfalls

Common pitfalls can cause delay or funding rejection. Identifying these risks in a timely manner allows for remediation. ECO funding is competitive. Poorly conceived or executed applications are quickly eliminated. Four common areas require consideration.

Inadequate project scope or funding can delay progress or deter site-ready projects. The extravagant budget is a visual turn-off. Supplied cost estimates must clearly delineate in-scope versus optional works. Ensure cost estimates clearly separate essential works from those considered non-mandatory.

Proposed installations must be acceptable to all relevant stakeholders. Negative key stakeholder feedback can jeopardize the project. Identify local stakeholder interests in advance and ensure proposed works are congruent with these interests. Prepare responses to stakeholders both in support of and against the project.

Funded installation must be completed by March 2026. Applicants should ensure their project is sufficiently advanced prior to changing it into ‘ready to permit’ status.

7.2. Mitigation Strategies

While ECO applications may appear straightforward, several common pitfalls can lead to delays or rejections. These include: insufficient explanation of community support, impact, or wider benefits; unclear connections to local council priorities; a failure to demonstrate that costs are in line with local market rates; or unclear maps of the project location. Maintaining a clear, transparent, and logical application narrative can help to reduce the chance of such issues.

Projects funded through ECO must adhere to the scheme’s guidelines, and any changes to the scope or budget during implementation will need prior approval. Given the risk of budget overruns, especially with labour and material costs likely to exceed estimates, a small contingency fund can provide reassurance. Where critical elements are approaching full commitment, temporary suspensions of application-processing may not jeopardise funding. Engaging local supply chain partners at the earliest possible stage will help address any issues and allow scaling to meet demand.

8. Alternatives and Complementary Funding

Newtown (Y Drenewydd), Powys can apply for ECO funding directly but many other organisations (including statutory bodies and charities outside the housing sector) are also pursuing similar projects. Grants of up to £15,000 for projects costing up to £50,000 are available from Environmental and Energy Support for Wales, while Eco-decision.com and Energy Action Wales support low energy and fuel poverty projects. Projects aligning with net-zero goals can also benefit from community grants administered by the National Lottery or other local, Welsh or UK funds.

Support for energy-efficiency projects is also available for organisations involved in adult learning or homelessness issues, as well as for organisations providing core services to community, educational or recreational groups. The following bona fide charities may also be able to access funds to support energy efficiency improvements: small regional charities with a general charitable purpose; horticultural charities registered with the RHS; and charities founded by religious denominations. European funding initiatives could also support energy efficiency improvements. Low carbon energy or environmental projects are supported by the Wales Rural Development Programme with EU funds (via the Welsh Government) while proposals for large-scale pilot renewable energy generation, distribution or storage projects may be eligible under Horizon Europe.

8.1. Local Grants and Partnerships

At the time of writing, the application window for the Local Places for Nature scheme is open. Offered by the Welsh Government, it provides funding to create or enhance natural spaces in Wales. Supported projects can involve planting flowers, trees, or shrubs; creating wildflower meadows; increasing the range of habitats for pollinators, birds, bats and amphibians; building a pond; creating a wildlife habitat and education area for schools; replacing pathways and adding benches using natural materials; and installing signs to encourage appreciation of nature. Projects must also align with local biodiversity plans and aim to encourage volunteering and local engagement. The scheme provides a good opportunity for engagement with local schools and environmental groups, for example, Keep Newtown Tidy.

The Town Council is a member of the Newtown Partnership and the county-wide Powys Public Service Board (PSB). Projects that are supported by these bodies should therefore receive a supportive mention in the application. Local interest and support for the project will help strengthen the submission, as will engaging with partner organisations. These might include other public bodies such as the National Park Authority or Natural Resources Wales, as well as local organisations such as the Newtown & Surrounding Area Land Trust. The Local Nature Partnerships for Mid and North Wales are well‐placed to highlight links with other local conservation initiatives; some may even relate to Local Places for Nature projects.

8.2. European and National Support Options

Although ECO funding aims to support community-scale energy efficiency projects, the budget available is limited. In many cases, there are alternative or supplementary funding sources that can be explored, including the Welsh Government's grant programmes for local authorities or Community and Town Councils. Current rounds of funding can be viewed on the Warm Wales website (www.warmwales.org.uk).

In addition to these local funding opportunities, it is also useful to explore European Union, UK, or Welsh Government funding and financing support available to address climate change and promote green initiatives. Relevant current programmes could include: the UK Government’s Green Homes Grant Local Authority Delivery Scheme, the Welsh Government’s Optimised Pathway pilot – using £10m from the European Social Fund – or any future iterations of the modified WEFO-supported scheme; the Welsh Government’s Transforming Towns Strategy; any Aurora project focusing on local energy economies; or any regional Local Energy Strategies. Other relevant organisations in Wales working on producing tools, ideologies, or funding for local decarbonisation works include the Energy Saving Trust and the Centre for Sustainable Energy.

9. Compliance, Reporting, and Audits

Three principal responsibilities are attached to successful ECO applications: meeting monitoring requirements, preparing concise financial reports, and permitting on-site audits.

Monitoring requirements are especially interactive and can involve a range of stakeholders. The applicant is responsible for ensuring that the project is delivered in accordance with approved plans and any other relevant commitments, including statutory and other consents, material given in support of the application, and any agreements with Ecodyfi made on approval. This may entail liaising with the building contractor to obtain appropriate information and providing it to the delivery partner in a timely manner. The delivery partner may also ask the applicant to gather feedback from participants and to monitor product performance over an agreed period. The applicant is obliged to keep copies of all correspondence relating to monitoring and these may be made available to other stakeholders as needed.

When submitting the Claim Form, the applicant also must submit a concise financial report that outlines the project, provides a brief narrative of the expenditure incurred, and confirms that the project was delivered in accordance with the Grant Offer Letter. Finally, the applicant consents to the delivery partner undertaking a post-completion site inspection and allowing other parties to do so as well, thereby enabling a fuller understanding of the project and its community and social benefits. Such audits typically take place shortly after completion and again a year later, together with any discussions on project performance and lessons learnt, and may be required both by Ecodyfi on behalf of other partners and by other stakeholders.

9.1. Monitoring Requirements

Successful applicants to ECO funding remain responsible for the project for its duration and for monitoring energy-efficient measures for five years following project completion. The funder then expects a monitoring report to verify that the installed measures continue to meet the minimum required standard. In Newtown (Y Drenewydd), Powys, these minimum requirements reflect aims for a local housing assessment, namely: to meet appropriate measures and a satisfactory installation for 83% of homes; adequately insulated roofs for 91% of homes; and to apply energy improvement measures listed in Powys's Empty Homes Strategy for properties on the council’s register of empty properties.

Registered projects may receive an interim payment, with subsequent certification of measures and delivery activities allowing for final payment, similar to the first-to-party funding scheme. Grant conditions typically require that the output measures remain intact for a defined period.

9.2. Financial Reporting

Projects that secure ECO funding are likely to receive close scrutiny and be subject to detailed reporting requirements. Depending on the size of the grant award, applicants may have to submit full accounts or may qualify for a simplified submission.

Micro-projects under £20,000 in total costs and community projects endorsed by local authorities usually enjoy a more lenient regime, but other awards may be subject to external audit. A number of suppliers have expressed an intention to sponsor a sample set of community projects to offer them greater comfort and facilitate connections.

9.3. Audits and Public Accountability

ECO is a national government programme established to help lower-energy households with the cost of sustainable energy measures. Projects supported by ECO funding must have a primary energy efficiency benefit. All ECO projects are subject to post-installation inspections in accordance with the approved Quality Management Plan of the Scheme Administrator (in some cases inspections may be undertaken on behalf of the Scheme Administrator). Audits are often completed by brokers, who approve the work of contractors. There may be post-installation inspections by the Scheme Administrator or appointed representatives of the Scheme Administrator. In addition to Scheme Administrator audits a proportion of ECO funded installations are subject to audits required under the terms of the Department of Energy and Climate Change funding offer.

Secondary audits may also be required by Wales and West Utilities as part of their Community Fund – where funding is provided to assist vulnerable and fuel poor customers in the installation of gas connections. Project budgets should allow for audit costs, where these are applicable. Auditors will be looking for exemplary installations that meet all the relevant criteria. Successful delivery of projects and the quality of completed work can be advantageous when sourcing future funding, as good reputation leads to new pathways for resource and funding. It is sensible strategy to take the opportunity to show potential funding partners on site, focus on valuable project benefits and present key successes.

10. Conclusion

ECO funding in Newtown is an attractive option for projects that will improve the energy efficiency of homes and non-domestic buildings within the town's settlement boundary. The application process is straightforward, as long as key requirements are met and the right supporting evidence is provided.

Projects that are genuinely cost-effective for the local community create local jobs and supply chains, and provide wider non-financial benefits, are likely to be viewed positively. The existence of a strong benefitting organisation, such as a housing association or neighbouring county council, is also a strong positive factor in the assessment.