The Energy Company Obligation (ECO) is a UK government energy-efficiency scheme designed to tackle fuel poverty and reduce carbon emissions. Now in its fourth phase, known as ECO4, the scheme places emphasis on improving the energy performance of homes occupied by low-income and vulnerable households.
Landlords of eligible properties may qualify for fully funded energy, efficiency upgrades under ECO4. These improvements not only support tenants by reducing energy costs but also enhance long-term property value and help meet compliance standards related to energy performance.
Why ECO4 Matters for Private Landlords
The ECO4 scheme presents an opportunity for landlords to improve their property portfolios while supporting broader environmental goals. Installing modern, energy-efficient systems can:
- Improve the Energy Performance Certificate (EPC) rating of your property.
- Reduce energy costs for tenants.
- Strengthen property value and rental appeal.
- Support compliance with minimum energy efficiency standards (MEES).
- Contribute to UK carbon reduction targets.
Participation in ECO4 is not only financially practical but also aligned with long-term policy trends affecting residential lettings in the UK.
ECO4 Scheme: Landlord and Tenant Eligibility Requirements
To access ECO4 funding, properties and tenants meet specific eligibility conditions.
Tenant Criteria
ECO4 applies where at least one tenant in the household receives one of the following qualifying benefits:
- Income-based Jobseeker’s Allowance (JSA).
- Income-related Employment and Support Allowance (ESA).
- Income Support.
- Pension Credit Guarantee Credit.
- Universal Credit.
- Housing Benefit.
- Pension Credit Savings Credit.
- Child Benefit (with income thresholds and dependent children).
In addition to benefits-based eligibility, local authorities may also assess households under the Local Authority Flexible Eligibility (LA Flex) route.
Through LA Flex, eligibility is extended to include:
- A total household income is under £31,000 per year (before tax).
Someone in the home has a health condition made worse by the cold, such as:
- Respiratory illness such as asthma.
- Cardiovascular issues.
- Mobility limitations such as arthritis.
- Cancer or immune disorders.
- Neurological conditions.
Property Criteria
The property must be located in England, Wales, or Scotland and must be a domestic dwelling. The property must have a current Energy Performance Certificate (EPC) rated at band D or below (D, E, F, or G) in order to benefit from the upgrades.
What Energy-Efficiency Upgrades Are Available under ECO4?
A range of insulation, heating, and renewable energy solutions are available through ECO4. These are installed at no cost to eligible landlords and tenants, with funding provided directly to registered and accredited installers.
Common measures include:
- Boiler upgrades – Replacement of outdated or inefficient boilers with modern A-rated models.
- Central heating systems – Installation of central heating in homes that lack it.
- Air source heat pumps and storage heaters – Low-carbon alternatives for space heating.
- Cavity wall insulation – Suitable for homes with unfilled cavity walls.
- Internal or external wall insulation – Improves heat retention and reduces draughts.
- Underfloor insulation – Reduces heat loss through ground floors.
- Solar photovoltaic (PV) panels – Generates electricity to offset demand from the grid.
The measures installed will depend on the outcome of an in-home energy assessment, which is conducted by an authorised retrofit assessor. The assessment identifies the most appropriate upgrades based on the property type, construction, and current heating system.
Further Reading: ECO4 Guidance and Documentation
Installation Standards and Quality Assurance
All works completed under ECO4 must comply with government-mandated standards. This includes:
- PAS 2030:2019 – Specification for the installation of energy efficiency measures.
- TrustMark Certification – Ensures installers are registered and operating within recognised quality frameworks.
Recognising the Broader Impact of ECO4
The ECO4 scheme is part of the UK’s long-term strategy to decarbonise housing and alleviate fuel poverty. By participating, landlords play an active role in meeting national carbon reduction targets, supporting public health, and strengthening community resilience.
From a tenancy management perspective, homes that are warmer and cheaper to heat tend to have:
- Higher tenant satisfaction.
- Reduced turnover rates.
- Fewer maintenance issues related to damp or cold.
Investing in energy efficiency may also assist landlords in meeting anticipated future requirements, including proposed regulations for all rental homes to achieve EPC Band C by 2028.
Recommended Actions for Landlords
To take full advantage of the ECO4 scheme, contact Consumer Rights by using our eligibility checker. Consumer Rights will discuss eligibility with your tenants, talk them through the application process, and find a local, highly vetted and government approved installer to complete the upgrades.
For landlords committed to improving their properties and supporting national energy goals, ECO4 provides a practical route to achieving both.
People Also Asked
How can landlords benefit from the ECO4 scheme?
Landlords can benefit from the ECO4 scheme by getting help with the costs of energy-saving improvements like insulation, efficient boilers, and solar panels. These upgrades lower tenants’ energy bills, make properties more attractive to rent, and can boost property value. At the same time, landlords support sustainability and help cut carbon emissions.
Why Should I Apply for ECO4?
Applying for ECO4 helps landlords improve their properties with energy-saving upgrades like better heating, insulation, or solar panels, without covering all the costs themselves. These improvements lower tenants’ bills, make homes more attractive to rent, and can increase property value, while also helping to cut carbon emissions.
Is there a deadline for ECO4 scheme applications?
The ECO4 scheme is scheduled to run until 31 March 2026. However, funding is limited and could run out earlier if demand is high or suppliers meet their targets before then, so applying early is recommended.
Are landlords eligible for ECO4 assistance?
Yes, landlords can get help through the ECO4 scheme, but certain conditions apply. Usually, the property must be in the UK, and tenants need to receive specific benefits or be classed as a low-income household. The property’s Energy Performance Certificate (EPC) rating may also affect which improvements are allowed. Landlords should always check the latest eligibility rules for accurate details.
Can landlords apply for ECO4?
Yes, landlords can apply, but only if their tenants meet the qualifying criteria. For example, properties let to tenants receiving certain benefits, such as Universal Credit or Pension Credit, may be eligible.
Cost of Living Support Available:
- Household Support Fund (England)
- Cost of Living Payments
- Support for Mortgage Interest (SMI)
- Mortgage Guarantee Scheme
- Council Tax Reduction
ECO4 Support Available:
- Department for Business, Energy & Industrial Strategy: Energy Company Obligation
- Ofgem: Energy Company Obligation (ECO4) Guidance: Delivery V1.1
- Ofgem: Energy Company Obligation (ECO)
- UK Government: Help from your energy supplier: the Energy Company Obligation
- Which? : Energy Company Obligation (ECO)
Other Support Available:
Did this advice help?
Help us improve our website. Your feedback will help us give millions of people the information they need.