Could the ECO4 energy grant scheme be extended?

A Government grant scheme offering cash for energy efficiency upgrades could be extended by up to nine months, giving landlords longer to apply for funding. 

The Energy Company Obligation (ECO4) scheme is scheduled to end on 31st March next year, with the Government now consulting on the extension to ensure as many households as possible benefit from grants - as well as giving policymakers time to develop successor schemes. 

What is the ECO4 grant? 

ECO4 is a government-backed scheme that aims to reduce household energy bills and cut carbon emissions.  

The scheme is delivered by larger energy suppliers, who are required to meet targets for annual bill savings by installing measures such as insulation, heating upgrades, and low-carbon technologies. 

Who is eligible for grants? 

Grants are available for households who are in receipt of qualifying benefits – whether they are owner occupiers or tenants – and live in homes with an Energy Performance Certificate (EPC) rating of D or below. There is a ‘fabric first’ approach, meaning improvements must be made to buildings before new heating systems can be fitted. 

So far, most ECO4 improvements have been delivered to owner-occupied homes, with only 14% of the funding pot benefitting private landlords.  

Why is an extension useful to landlords? 

Our research shows that many of you are unaware of the funding streams available to you, so the proposed extension could be very beneficial, not least as new Minimum Energy Efficiency Standards (MEES), expected to be brought in over the next three to five years, will prevent landlords letting out properties falling below an EPC C. 

The extension will give you more time to apply for funding and bring properties up to standard ahead of the new rules.  

The consultation is open until the 25th September, and you can have your say here.  

More information  

• To access our energy efficiency page, click here.  
• To know more about energy efficiency grants and how to apply, click here. 
• To find out more about the latest energy proposals impacting the PRS, click here.