Struggling with High Energy Bills? Here’s How Tenants Can Save with ECO4 Grants
Tenants can often struggle with the energy bills of their rentals, especially if they are on a low income. This issue grows over winter, where colder weather leads to higher energy consumption, and where bills rise exponentially with poorly-insulated, drafty rentals, and increasing energy costs.
The ECO4 scheme (also known as the Energy Company Obligation) was introduced to help with this exact problem. Qualifying tenants, with the permission from their landlords, can receive a grant from the ECO4 scheme to improve the energy efficiency of a home, leading to warmer, more comfortable, and less expensive rented homes. So, how does this work?
In this blog, find out how the ECO4 scheme can help with energy bills for tenants, with no cost.
- Why Are Energy Bills So High?
- How The ECO4 Scheme Helps Reduce Heating Bills
- How ECO4 Helps Reduce Heating Bills Without Costing You a Penny
- Who Is Elegible For Funding Via The ECO4 Scheme?
- Real Impacts: Tenant Savings In Real Life
Why Are Energy Bills So High?
Unfortunately, the UK has one of world’s highest electricity costs.
The reasons why energy bills in the UK are so high are complex, and there are a lot of them. There is global instability, the rising UK energy price cap, and other issues the everyday homeowner or tenant is affected by. One of the most important reasons is this - in the UK, we are dependent on gas imports.
We also operate on a ‘marginal pricing’ system. The implication here is that the cost of electricity from all sources is priced according to the most expensive method needed to meet day-to-day demand, which is burning gas in power plants. According to recent sources, the electricity market price in the UK is set by burning gas a whopping 98% of the time. In contrast, the EU average is under 40%.
This means that even energy generated in cheaper ways will be priced at the highest point.
But this isn’t the only reason - countless rented buildings across the UK suffer from poor insulation and outdated boilers, and tenants have little control over potential upgrades. People in the UK are also struggling with fuel poverty. In 2024, 11% of households were in a state of fuel poverty. This is expected to increase in 2025, reaching 11.2%, representing 2.78 million people.
Tenants in particular can feel the pinch here, often feeling stuck with little idea of what options there are. That’s where the ECO4 Scheme comes in.
How The ECO4 Scheme Helps Reduce Heating Bills
So, how does the ECO4 Scheme help with energy bills for tenants? There are a number of real, undeniable benefits.
ECO4 Installations Help with Energy Bills for Tenants
The most important and most impactful benefit of an ECO4 grant is this - the scheme will help tenants lower the energy bills of their rented property.
When energy-efficient solutions are installed by a trusted energy efficiency solutions provider, solutions like internal wall insulation or boilers and central heating improvements, the amount of energy needed to heat a home is reduced. When energy use is reduced, monthly bills come down too.
Enhanced Comfort In Homes
A lot of people struggle during the colder months. Poor insulation, drafts, and outdated heat systems ensure that when temperatures drop, so too does the comfort of the tenant.
Improved energy efficiency translates to greatly improved indoor comfort and even air quality, as a warmer home is more resistant to issues like mould. This promotes an increase in overall well-being and a more balanced bank account.
Targeted Support
Not everyone is eligible for funding from the ECO4 scheme.
Grants from the ECO4 scheme are prioritised for vulnerable parties, such as those people on a low income or who receive benefits. Tenants who are also living in a building with a low EPC rating of E, F, or G will also be prioritised for support.
The scheme itself is designed to help those who are the most financially or physically vulnerable. The best thing? There’s absolutely no cost to you.
Expert Help
If you’re in a position where your rented property isn’t very energy efficient and you struggle with heating costs and a lack of well-being because of these problems, help is available to you.
Experienced and trusted energy efficiency solutions providers are willing to come and support you through the process, helping you:
- Discover if you’re eligible for ECO4 support.
- Assess your property and determine what solutions are needed.
- Install these solutions in your home without it costing you a penny.
At this point, you might be asking, “How does this not cost anything?” Let us tell you.
How ECO4 Helps Reduce Heating Bills Without Costing You a Penny
ECO4 is the latest version of the ECO scheme. It’s administered by Ofgem, and as we said above, stands for the Energy Company Obligation. The interesting thing about this is that the funding actually comes from energy companies themselves, who are obliged by the UK government to ensure UK access to energy-efficient solutions.
Right now, the total funding pot available is £4 billion, and the amount of funding a person will receive depends on their personal situation. In many cases, we’ve seen successful applicants access up to as much as £20,000 for their home energy efficiency improvements.
The application process is fairly simple. You can use an online portal to check your eligibility (which takes about 60 seconds!), and then you are provided with an assessment. This assessment can be provided by avqualified assessor, who will evaluate your property within one working day to create a comprehensive house survey - depending on which energy efficiency solutions provider you choose to work with.
A registered installer (like us!) will then be allocated to you depending on the area you live in. If the assessor gives the go-ahead, the installer will arrange the best date for installation. After this, the installer or solutions provider will submit the finalised application to the relevant energy company on your behalf.
Once this is done, the energy company approves the application and pays the ECO4 grant directly to the installer, who then gets to work improving the energy efficiency of your home!
The amount a tenant can save on their monthly heating and energy bills depends on how much energy is used, what home improvements are installed, and how much external prices change. From what we’ve experienced, supporting low-income households and helping them to access money-saving solutions via the ECO4 scheme, a household can reduce their energy bills by up to 60% by increasing the energy efficiency of their home.
What Is the ECO4 Scheme? A Tenant’s Guide to Free Home Energy Upgrades in 2025
Curious about what the ECO4 Scheme looks like? Explore our recent guide that delves into what free home energy upgrades could be installed via an ECO4 grant.
Find out more here
Who Is Eligible For Funding Via The ECO4 Scheme?
There are a number of necessary eligibility criteria that a tenant will need to be able to have before accessing the funding offered by the ECO4 scheme. Here’s a simple explanation - Qualifying for ECO4 funding requires you have these core criteria:
- An EPC rating of D or lower on your owned or rented property;
- You must be a homeowner or a private tenant who is on the qualifying benefits;
- The total income of your household must be £31,000 per year or below.
You may be wondering what received benefits enable eligibility. We’ve listed them here:
- Jobseekers Allowance Employment & Support (JSA)
- Universal Credit (UC)
- Child Tax Credits (CTC)
- Allowance (ESA) Income Support (IC)
- Pension Guarantee Credit
- Housing Benefit
- Pension Saving Credit
- Warm Home Discount Rebate Working Tax Credit (WTC)
Additionally, another qualifying criteria is iff a household member has a medical condition that makes them vulnerable to the cold.
What If I Don’t Receive Benefits?
The ECO4 scheme obliges energy companies to deliver up to 25% of their obligation via ‘flexible eligibility’. So how does this work?
A local authority will publish a statement of intent, usually on their website, that illustrates the criteria for tenants to qualify for ECO4 funding outside the benefits we’ve listed above.
Often this can include being deemed to be in fuel poverty, low-income, or having household members vulnerable to the cold. Check with your local authority for the Local Authorities Flex (LA Flex) eligibility criteria.
You can explore one of our ECO4 Flexible Eligibility grant projects here.
How Do Tenants Qualify?
Tenants can qualify using any of the core criteria. However, they must have permission from the landlord before any work can be carried out.
Does Everyone Receive The Same Funding?
The short answer is no, not everyone will receive the same funding, and therefore not everyone will receive the same energy efficiency installations. The measures available will change on a case-by-case basis, and will depend on the EPC rating of the property in question. Properties with an E, F, or G rating may be eligible for several types of installation.
Real Impacts: Tenant Savings In Real Life
In 2024, we completed an eco-friendly installation in four flats housed in one building in Rosendale.
This was a fantastic project to complete, featuring installation of both internal wall insulation (IWI), high heat retention storage heaters, and solar panels. This greatly improved the energy efficiency of the home and reduce monthly energy bills - providing comfort and wellbeing for the tenants.
Approximately £18,000 was accessed through an ECO4 grant. This money went a long way - improving the EPC rating of the property from an F to a B.
Curious about this project and how long it took from application to installation? Learn more about this project here.
Check Your Eligibility in 60 Seconds Today
An ECO4 grant helps with energy bills for tenants. Energy efficiency installations are helping to save on bills and helping to save our planet.
Are you a tenant that wants to improve the energy efficiency of the property you rent and think you might be eligible for ECO4 funding? Contact us today, and we will have our in-house qualified assessors evaluate your property within one working day to see what energy efficiency installations could be available.
