Energy Company Obligation (ECO4)

What Is It For?

The Energy Company Obligation (ECO4) is a government-backed scheme requiring energy suppliers to fund energy efficiency and heating upgrades in low-income, fuel-poor, or vulnerable households across England, Scotland, and Wales. Running from April 2022 to 31 March 2026, the scheme is supported by a £1 billion annual budget and aims to reduce carbon emissions, tackle fuel poverty, and improve Energy Performance Certificate (EPC) ratings including rental properties with EPC rating of E or below, making it particularly relevant for landlords looking to upgrade inefficient homes.

 

How It Works?

Under ECO4, a list of medium and large-sized energy suppliers is funding energy efficiency improvements in eligible properties. Each supplier is assigned a target based on its share of the domestic energy market. These suppliers partner with some installers to deliver approved upgrades, including insulation, heating systems, and renewable technologies.

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Eligibility:

To qualify for ECO4 funding, properties and households must typically meet the following criteria:

• Rental properties must have an EPC rating of E, F, or G.

• Households must usually be receiving means-tested benefits (e.g., Universal Credit, Child Benefit with income thresholds, Pension Credit).

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Fund per Property:

The level of funding varies based on the property type, required measures, and household circumstances. Energy suppliers decide which retrofit projects to support and how much funding to allocate. In some cases, landlords may be asked to contribute toward the installation costs.

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What Works Does It Cover?

ECO4 follows a “whole house” approach, meaning it focuses on comprehensive improvements rather than single upgrades. Measures covered include:

• Insulation: Loft, cavity wall, solid wall, and internal wall insulation.

• Heating upgrades: First-time central heating (FTCH), air source heat pumps, high-retention storage heaters, and A-rated boiler replacements (for broken non-condensing boilers).

• Renewables: Solar panels.

• Other measures: Heating controls, including Smart Technologies and Flexible Heating Systems.

   

Please note that ECO4 funding cannot be combined with other government schemes, such as the Boiler Upgrade Scheme (BUS), for the same installations.

 

Landlords can register for eco-Landlord and check grant eligibility for each property now.

 

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