Grants For Private Landlords
The ECO4 scheme is the fourth and likely final phase of the Energy Company Obligation (ECO) scheme, which is a government initiative that was launched in 2013.
The scheme aims to support the least energy-efficient homes in the country, with a focus on low-income and vulnerable households. The scheme is designed to encourage a whole-house approach to energy efficiency and it is set to come into effect later in 2022, replacing the recently ended ECO3.
ECO4 grants for private landlords can benefit the property owner in several ways. The scheme offers a set of grants available to homes that don’t have the income to fix their inefficient heating systems. These grants consist of three overall categories:
According to recent figures, more than 3.1 million measures have been fitted in over 2.3 million homes. By participating in the scheme, private landlords can access funding for these energy-efficient upgrades for their properties, which can help to reduce energy bills for their tenants and improve the living conditions of their properties.
The scheme also has a multi-measure scoring mechanism, ECO4 is based on meeting the Minimum Requirement (MR). To do so, you must improve a property’s SAP score sufficiently to increase the EPC Band from F or G to an E, or from D or E to a C. By making these improvements, landlords can increase the energy efficiency of their properties, which can make them more attractive to potential tenants and increase their rental value.
The scheme also has a time limit, it starts in July 2022 and will run until March 2026. This means that landlords have a limited time to access the funding and make the necessary improvements to their properties. In order to be eligible for the funding, the applicants needs to receive one of a list of qualifying benefits.
Overall, the ECO4 scheme offers a range of benefits for private landlords, including funding for energy-efficient upgrades such as insulation, solar panels, and heat pumps.
By participating in the scheme, landlords can reduce energy bills for their tenants, improve the living conditions of their properties, and increase the rental value of their properties. However, the scheme is only available for a limited time and landlords need to meet the eligibility criteria.
ECO4 is backed by large and medium energy suppliers. They have legal obligations under the Energy Company Obligation (ECO) scheme. This includes companies like British Gas, EDF Energy, E.ON, Scottish Power, and Octopus Energy.
For more information please go to the government’s Ofgem website.