What Is the ECO4 Scheme? A Tenant’s Guide to Free Home Energy Upgrades in 2025

Energy efficiency in homes is a huge talking point for many tenants, landlords, policymakers, and contractors today. It can be the difference between a well-insulated home and a home that gets too cold in winter, and it can be the difference between an affordable energy bill and a shockingly large one.

Today, tenants and landlords alike can benefit from what is known as the ECO4 scheme (also known as the Energy Company Obligation). This is a scheme developed to improve the energy efficiency of homes in the UK - and it’s working. However, it’s relatively unknown by the general populace. So why is it important?

Lowering monthly bills, increasing energy efficiency, and increasing well-being - these are the crucial benefits that the ECO4 scheme can provide to those who make the most of it. But how exactly does it work?

Read this article to discover the following:

What is the ECO4 Scheme For Tenants?
What Are The Benefits of ECO4 For Tenants?
Can Tenants Qualify?
What Housing Energy Efficiency Solutions Can Be Installed?
The Next Steps for Single Tenants and Families

1. What Is The ECO4 Scheme For Tenants?

ECO4 is a government-backed scheme that helps households become more energy efficient and lower their monthly costs, while also working towards achieving carbon neutrality within the housing sector.

In short, the ECO4 Scheme provides grants that go towards funding energy-efficient improvements for home. The grants offered by ECO4 for tenants and landlords alike can be used to pay for new heating systems such as:

In 2024, through ECO4 and other schemes, 420,600 energy efficiency measures were installed across 120,900 houses in the UK. 80% of these installations were made through the ECO4 Scheme.

Dealing With Rising Energy Prices

International gas prices are rising due to a number of circumstances. The UK power system has been historically dependent on gas to heat our homes in the colder months, in comparison to other European countries which either need to heat their homes less often or utilise another form of energy production.

Because of rising gas prices, the energy price cap is also rising. The price cap is the maximum amount energy suppliers can charge for each unit of gas and electricity used. Between April 1 and June 30 2025, the price cap was set at £1,849 per year for a typical household that uses electricity and gas and pays by Direct Debit.

Unfortunately for those who pay energy bills, especially low-income households who may already struggle with fuel poverty, this is an increase of 6.4%. This is why schemes such as ECO4 are becoming more useful.

2. What Are The Benefits of ECO4 For Tenants?

Energy efficiency is a fast-growing trend - but it’s not simply a fad. With concerns around the cost of living, increasing energy and household bills, and concerns about the health of our planet, energy efficiency has become the cornerstone of modern housing developments that are both planet and wallet-friendly.

Did you know that from 2013 to 2024, 4.5 million energy efficiency upgrades have been installed in 2.8 million properties? And the numbers are only increasing. 2024 saw a 23% increase in installations compared to the previous year. So what are the benefits of ECO4 for tenants and landlords?

It’s Free

The ECO4 scheme is free to access and costs nothing for those applying.

It’s Reducing Fuel Poverty

Fuel poverty is where a household, typically a low-income household, is either unable to afford or struggles with their energy bills.

By installing energy efficiency measures in these households, more and more tenants and families across the UK are able to adequately heat their homes and afford their energy bills.

Many People Can Apply

ECO4 Scheme grants are available to many:

Private tenants who have the permission of their landlord;
Landlords themselves;
Homeowners;
Individuals who receive income-related benefits;
Properties with inefficient electric heating.

Homeowners, landlords, and private tenants can receive a grant from the ECO4 Scheme, yet they must show they are eligible.

It’s Helping the UK Achieve Net Zero Carbon Emissions

Creating a sustainable, affordable, fuel poverty-free world is within our grasp, and schemes like ECO4 are helping to achieve that.

When homes are energy efficient, it lowers the amount of energy needed to heat them during the colder months, and lowers the energy needed to run appliances. This, in turn, lowers the amount of carbon emissions created through power generation.

At Castle Eco Solutions, we’re proud to help this become a reality through our work installing energy efficiency measures in UK houses. You can learn more about our dedication to sustainability in this blog here.

It’s Increasing Well-being

Many households across the UK suffer from poorly insulated homes, outdated heating systems, and hardship when trying to heat their homes. In England in 2024, 11% of households were classed as fuel poor.

The highest regional rates of fuel poverty (from a 2024 report using 2022 data) were in the West Midlands and Yorkshire and the Humber. In the North West, where we are based, 14% of households were classed as fuel poor.

When household energy efficiency is improved, it improves the quality of life of those living there. Those tenants and families will see lower monthly bills, giving them more money to spend on the things that really matter. Additionally, an energy efficient home is a better place for people with health issues who may be adversely affected by the cold or related problems.

There’s also increased peace of mind for the household from the trust that comes from an updated system - a truly invaluable benefit.

It could Increase the Property Value

Increased energy efficiency may improve property value.

When a household is more energy efficient, it can receive a higher Energy Performance Certificate (EPC) rating. According to MoneySuperMarket, improving an EPC from a G to an A can result in a property value increase of 14%. The Mortgage Advice Bureau offers alternative statistics, stating that if a house moves from an F to a C, it could increase in value by 19.6%. For a property worth £150,000, the value would increase by £29,400.

3. Can Tenants Qualify?

The short answer to this question is - Yes! Tenants can qualify for grants from the ECO4 scheme.

ECO4 grants are available to tenants in the UK, across England, Scotland, and Wales. In these locations, the eligibility criteria vary slightly, so it’s worth finding out if you’re eligible.

There are two ways to qualify through ECO4 - the means-tested benefits route or the Flexible Eligibility route, which can apply to households with an income under £31,000. Those with health issues that are affected or exacerbated by a cold home can also be eligible.

ECO4 for tenants is generally given to those tenants who are in low-income households, or those who are receiving benefits such as universal credit, pension credit, income support, or housing benefit. Tenants living in a property with low energy efficiency may also be eligible, as properties with EPCs or E, F, or G are prioritised.

If you own your house, it must have an energy efficiency rating of D, E, F or G to be eligible.

An important point to remember is that a tenant must have the permission of the landlord before applying for an ECO4 grant. The best way to approach this is to partner with an experienced energy efficiency solutions provider who can facilitate between the tenant and the landlord.

4. What Housing Energy Efficiency Solutions Can Be Installed? 🌿

Depending on the scenario, a variety of installations and improvements can be installed by a trusted provider. Grants can be given for heating, insulation, and renewable energy. Households can be given an ECO4 grant for:

You can explore the rest of our site to discover how these installations improve the energy efficiency of your household.

5. The Next Steps for Single Tenants and Families

The bottom line is that ECO4 for tenants is an incredibly wise decision to make. Funded entirely by ECO4 with no upfront costs and handled by experienced and reliable energy efficiency solution providers, a choice like this is the right one for those struggling with energy efficiency problems or fuel poverty.

If you’re a tenant, a homeowner, or a landlord and you’re interested in the benefits afforded by the ECO4 scheme, we would encourage you to explore our site to find out more about the installations you could receive by looking through our recent projects.

Check Your Eligibility in 60 Seconds here

If you want to find out more, why not see if you’re eligible? Contact us today and we will have our in-house qualified assessors evaluate your property within one working day to create a comprehensive house survey to see what you could receive.

An ECO4 grant for tenants captures two important benefits - savings on energy and saving our planet. If you’re interested in learning more about how tenants can save money through the ECO4 scheme, read this article today.