ECO4 Grants for Landlords: Funded Upgrades Before the December 2026 Deadline

ECO4 closes on 31 December 2026. Ofgem says suppliers must deliver their obligation in full by then, so installs need to be finished well before that date. Ask an installer whether they can still complete your job in time.

ECO4 can fund insulation, heat pumps and some other measures in rented homes. Some jobs need a contribution, so get the cost in writing. Your tenant must qualify through benefits or a local authority referral (LA Flex), and the property must have an initial energy efficiency rating of E, F or G. If your tenant qualifies, ECO4 is one of the main funding routes ahead of the band C standard government has proposed for 2030.

Key Facts

• Scheme name: Energy Company Obligation 4 (ECO4), administered by Ofgem
• Deadline: 31 December 2026 (extended from March 2026 by government response, GOV.UK)
• Timing: Suppliers must deliver in full by 31 December 2026, so ask an installer whether they can still finish your job
• Property requirement: Initial energy efficiency rating of E, F or G for a rented home
• Tenant requirement: Receiving qualifying benefits or referred via LA Flex
• Landlord cost: Depends on the installer and supplier, so get the figure in writing before you agree
• Covered measures: Insulation, first-time central heating, heat pumps and some other measures. Boiler replacement is generally not funded in rented homes
• Who funds it: Energy suppliers (obligated by Ofgem to deliver a set number of upgrades)

Was ECO4 Extended?

Yes, and many landlords do not know this. ECO4 was originally due to close in March 2026. Following the government's formal consultation response, published on GOV.UK, the scheme was extended to 31 December 2026. If you dismissed ECO4 after seeing reports about the "March deadline", note that it now runs to 31 December 2026. Check with an installer whether new rented-home jobs are still being accepted.

The extension matters because it changes the calculation, but it is not long. Allow several weeks for survey, approval and installation. Installers will tell you whether they can finish before 31 December.

ECO4 ends on 31 December 2026. The government has said it is bringing supplier obligations to a close and is putting grant funding into low-income homes directly. The Warm Homes: Local Grant already runs through councils in England.

What Is the ECO4 Scheme for Landlords?

ECO4 is the fourth phase of the Energy Company Obligation, a government scheme that requires large energy suppliers to fund energy efficiency improvements in homes across Great Britain. Under Ofgem's ECO4 delivery guidance, a project earns a full project score only if it lifts a home that starts at band D or E to at least band C, and a home that starts at band F or G to at least band D.

For landlords, ECO4 is one of the main funding routes available ahead of the proposed 2030 EPC C standard, which government has announced but not yet legislated. The minimum band you must let at today is E. Unlike grants that require upfront payment and reimbursement, ECO4 measures are often installed at little or no cost to the qualifying household, but contributions can apply.

Does Your Rental Property Qualify for ECO4?

A rental qualifies for ECO4 when both tests are met: the property has an initial energy efficiency rating of E, F or G, and the tenant receives qualifying benefits or is referred by their council through LA Flex. ECO4 closes on 31 December 2026, so ask an installer whether they can still finish the job in time.

Property Requirements

Your rental property qualifies if it:

• Has an initial energy efficiency rating of E, F or G (band D homes only qualify if the occupier owns the home)
• Is located in England, Scotland, or Wales (Northern Ireland has a separate scheme)
• Gets a pre-works assessment, which sets the starting rating (ask your installer who arranges it)

Properties already rated C or above are excluded. According to EPCGuide's analysis of the domestic EPC register for England and Wales (30.4 million certificates covering 20.4 million homes), 52.7% of privately rented homes (1,841,947 of 3,497,519) sit below EPC C. A large share of rented homes sit below C, but only those in bands E to G can qualify for ECO4.

Tenant Eligibility (Benefits Route)

Your tenant qualifies if they receive at least one of these benefits and meet any relevant income requirements:

• Universal Credit
• Pension Credit (Guarantee or Savings Credit)
• Income-based Jobseeker's Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)
• Income Support
• Housing Benefit
• Child Benefit (subject to income caps and household composition)

The qualifying household must live in the property. Suppliers must also get your permission as landlord.

Tenant Eligibility (LA Flex Route)

If your tenant does not receive qualifying benefits, there is a second route. Local authorities can refer households under the LA Flex (Local Authority Flexible Eligibility) pathway. Ofgem's delivery guidance sets out four routes, and a household needs to meet only one:

• Route 1, household income: gross annual household income under £31,000, a national threshold that applies whatever the size of the property, the household or the region. It is the combined gross income of all adults aged 18 or over living in the home permanently
• Route 2, proxy targeting: at least two of seven listed proxies, such as living in a deprived area (a Lower Layer Super Output Area within the Indices of Multiple Deprivation) or being vulnerable to the cold for a reason other than low income
• Route 3, medical referral: a person in the household with a severe or long-term cardiovascular condition, respiratory disease, limited mobility or immunosuppression that is made worse by living in a cold home
• Route 4, bespoke targeting: new ways of identifying low-income and vulnerable households that a council proposes to DESNZ in an application

Councils choose whether to take part in LA Flex, so contact your local council to check whether it makes referrals.

Manchester landlords can also access the Manchester City Council Home Energy Loan Plan; see our Manchester EPC Guide for details.

What Measures Does ECO4 Cover?

ECO4 can fund insulation, first-time central heating, heat pumps and some other measures in rented homes. Which ones your property gets depends on its current fabric, its heating system and what the surveyor recommends. Boiler replacement is generally not funded in rented homes.

Ofgem's guidance covers measures such as loft, cavity wall, solid wall and underfloor insulation, draught proofing, heating controls, solar PV and renewable heating including heat pumps. Savings and the effect on the EPC score depend on the property. For indicative costs, use our cost calculator, which shows the GOV.UK sample EPC figure where one exists and labels every other figure as our own assumption.

The surveyor will produce a "measure specification" listing the upgrades your property needs to meet the minimum band (C for a rented home starting at E, D for one starting at F or G). ECO4 prioritises a "fabric first" approach: insulation before heating system changes.

In a rented home, the package must include at least one of solid wall insulation, first-time central heating, a district heating connection or renewable heating such as a heat pump, alongside any other measures. Replacing an existing boiler or central heating system is generally not funded in rented homes.

How Much Does ECO4 Cost the Landlord?

This depends on the installer and the supplier. Ofgem's FAQ for domestic consumers and landlords says ECO is not a grant scheme: it is up to the energy companies to decide which projects they fund and the level of funding they provide, and you may be asked to contribute to the cost of the installation. Ofgem's delivery guidance requires suppliers to get a landlord's permission before work in a rented home, and it requires installers to record any amount the consumer has contributed, so contributions do happen. Always confirm costs in writing before agreeing to installation.

Multiple properties: We found no per-landlord limit in Ofgem's delivery guidance, and each property and household has to meet the eligibility criteria independently. If you have a portfolio of E, F or G-rated properties with tenants on Universal Credit, you could potentially upgrade several.

For context on what these measures would cost without ECO4 funding, see EPCGuide's cheapest ways to improve your EPC rating.

How to Apply for ECO4 as a Landlord

There is no single application form for ECO4: the process works through energy suppliers and approved installers. Check that your tenant qualifies, contact an ECO-approved installer or your energy supplier, have the property assessed, wait for funding confirmation, then have the measures installed. The supplier must have your permission as landlord before work starts.

Step 1: Check Tenant Eligibility

Before anything else, confirm your tenant qualifies. Ask them (tactfully) whether they receive any of the qualifying benefits listed above. If not, contact your local authority about LA Flex referrals.

You will need your tenant's cooperation throughout, because eligibility is evidenced from the household. Build this into your communication early.

Step 2: Contact an ECO-Approved Installer or Your Energy Supplier

You have three routes in:

1. Contact your energy supplier directly. Only larger suppliers carry an ECO4 obligation, so ask whether yours does and who handles ECO4 enquiries.
2. Find an ECO-approved installer. Search for TrustMark-registered installers with ECO4 accreditation in your area. They handle the supplier paperwork on your behalf.
3. Go through your local authority. Some councils run ECO4 referral programmes and can connect you with approved installers.

Route 2 (approved installer) is usually fastest for landlords. The installer handles eligibility checks, surveys, and supplier liaison.

Step 3: Property Assessment

An assessor visits the property to:

• Verify the current EPC rating
• Identify which measures are needed to reach the minimum band
• Produce the measure specification
• Check for any structural issues that could prevent installation

Your tenant must be home or you must provide access.

Step 4: Funding Confirmation

The installer submits the measure specification to the energy supplier for funding approval, and the supplier decides whether to fund the job. Once approved, you receive a written confirmation of:

• Which measures will be installed
• Any landlord contribution required
• The installation timeline
• Guarantees and warranties

Do not sign anything until you have this in writing. Check that the installer is TrustMark-registered and works to PAS 2030:2023.

Step 5: Installation

Installation time depends on the measure, so ask your installer for a timeline in writing.

Your tenant needs to be aware of disruption, particularly for solid wall insulation which can require moving furniture and temporary room closures.

Step 6: Post-Installation EPC

After installation, a new EPC assessment is carried out to verify the property has improved. This new EPC is the one that counts for MEES compliance. Keep both the old and new certificates. Note that under the rules in force grant-funded work does not use up your £3,500 MEES cost cap. Under the proposed £10,000 cap, Boiler Upgrade Scheme money would not count, but other third-party funding, such as ECO4 or local grants, could.

The Timeline Is Tighter Than You Think

ECO4 ends on 31 December 2026. Ofgem's guidance says a supplier must deliver its ECO4 obligation in full no later than that date, so installs need to be finished well before it. Allow several weeks for survey, approval and installation, and ask an installer whether they can still complete your job in time.

What Happens After ECO4 Ends?

ECO4 ends on 31 December 2026, and the government's Warm Homes Plan replaces the supplier obligation model with direct government funding. In England, the Warm Homes: Local Grant already runs through councils until 31 March 2028: a landlord's first property is fully funded, then the landlord pays at least 50% for each further home. EPCGuide's guide to what replaces ECO4 covers the transition.

Key points for landlords:

• The Warm Homes: Local Grant is already accepting applications in some areas
• Your first property is fully funded; you pay at least 50% for each further home. Rented homes rated F or G need a registered MEES exemption to qualify
• ECO4 ends in December 2026. The Warm Homes: Local Grant continues through councils in England until 31 March 2028
• If you miss ECO4, you may need to self-fund upgrades should the proposed 2030 standard become law

Because the Local Grant is delivered through local authorities rather than energy suppliers, what you can claim depends on where the property is. Our breakdown of the council-run Warm Homes grant sets out the funding levels, the tenant income threshold and which councils have signed up so far. For every scheme compared side by side, see our guide to landlord energy grants.

The message is clear: if your tenants qualify, ECO4 is one of the main funding routes before the proposed 2030 standard. The ECO4 deadline guide explains why waiting is risky. If ECO4 does not fit, the landlord grants overview shows the alternatives.

Common Mistakes Landlords Make with ECO4

Assuming the March 2026 deadline already passed. ECO4 was extended from March 2026 to 31 December 2026 by the government's formal response to its own consultation. Many landlords gave up on ECO4 after seeing early deadline reports and have not checked since. ECO4 now ends on 31 December 2026, and no further extension has been announced.

Assuming you cannot apply because you are the landlord. ECO4 is tenant-qualifying, but landlords can contact an installer, and the household's eligibility still has to be evidenced. Many landlords miss out because they assume it is a homeowner-only scheme.

Not checking LA Flex eligibility. Even if your tenant is not on benefits, the local authority route can open up funding. Always check both pathways.

Leaving it until December. Installer capacity is finite. The closer to the deadline, the harder it is to book assessments and installations, so contact an installer now.

Accepting the first installer quote. Get quotes from at least two TrustMark-registered ECO4 installers. Compare the landlord contribution (if any), the guarantee terms, and the proposed measures.

Forgetting the post-installation EPC. The upgrade only "counts" for MEES when you have a new EPC certificate showing the improved rating. Make sure the installer arranges this as part of the package.

Frequently Asked Questions

When does ECO4 end?

ECO4 closes on 31 December 2026, and no further extension has been announced. Suppliers must deliver their obligation in full by then, so installs need to be finished well before that date. Allow several weeks for survey, approval and installation, and ask an installer whether they can still complete your job in time.

Can a landlord apply for ECO4 directly, or does the tenant have to apply?

In practice, landlords often start by contacting an ECO-approved installer, who then checks the household's eligibility. The qualifying household must live in the property, and suppliers must also get the landlord's permission for work in a rented home.

Is there a cap on how much ECO4 will fund per property?

No. ECO4 has no per-property amount. Ofgem's FAQ says it is up to the energy companies to determine which retrofit projects they fund and the level of funding they provide, and that the level depends on the type of measures and several other factors. Ofgem's delivery guidance sets no per-home funding cap. For a full project score, a rented home that starts at band E must reach at least band C, and one that starts at F or G at least band D.

Do I need to pay the tenant back for any ECO4 costs?

Not as a rule. Usually the supplier funds the work, but some jobs need a contribution. Agree in writing who pays what before the work starts.

What if my tenant moves out during the ECO4 process?

This can complicate things. The eligibility is tied to the current occupant. If your tenant gives notice mid-process, the new tenant would need to qualify independently for the work to continue under ECO4. Discuss timing with your tenant before starting.

Can I use ECO4 alongside the Boiler Upgrade Scheme?

Not for the same measure. You cannot receive ECO4 funding for a heat pump and also claim the Boiler Upgrade Scheme grant for the same installation. However, you could use ECO4 for insulation and BUS for a heat pump on the same property if the tenant does not qualify for a heat pump under ECO4. Ofgem's guidance says any other measures delivered to the property must be installed either before the first ECO4 measure or after all the ECO4 measures.

Does ECO4 cover properties in all parts of the UK?

ECO4 covers England, Scotland, and Wales. Northern Ireland is not included in the Energy Company Obligation. For Northern Ireland landlords, see our Northern Ireland EPC guide.

Can EPC band C properties qualify for ECO4 funding?

No. For rented homes ECO4 covers bands E, F and G only (owner-occupied homes can also be band D). Band C and above are excluded by scheme rules because the policy intent is to move properties from sub-standard ratings up to C, not to improve already-compliant homes. This applies to both the benefits route and the LA Flex route. If your property is already C, ECO4 cannot fund further upgrades. A band C property can still use the Boiler Upgrade Scheme (no EPC needed since 28 April 2026), but it is not eligible for the Warm Homes: Local Grant.

Is LA Flex eligibility different for EPC C properties?

No. LA Flex is a tenant eligibility route, not a property route. The property must still be band E to G if rented. LA Flex changes who counts as an eligible tenant (it widens benefits to include households on lower incomes or in vulnerable circumstances), but it does not change the EPC band requirement. A landlord with an EPC C property cannot use LA Flex to access ECO4.

Can ECO4 take a property from D to C, or only towards C?

The surveyor produces a measure specification listing the upgrades needed. Under Ofgem's ECO4 delivery guidance, a project earns a full project score only if a home that starts at band D or E is improved to at least band C, and a home that starts at F or G to at least band D. A rented home must start at band E, F or G, so in a rental that means E to C, or F or G to D. Projects that do not meet that minimum receive reduced scores, with limited exceptions.

Was ECO4 extended past March 2026?

Yes. ECO4 was originally due to end in March 2026. The government confirmed an extension to 31 December 2026 in its formal consultation response on GOV.UK. This is not the same as GBIS (Great British Insulation Scheme), which did end in March 2026. ECO4 and GBIS ran in parallel under different rules. ECO4 is still open; GBIS is not. Suppliers must deliver their ECO4 obligation in full by 31 December 2026, so ask an installer whether they can still finish your job in time.

Does ECO4 fund EPC certificates as well as upgrades?

A pre-works assessment is part of the ECO4 process, and Ofgem's guidance says an updated assessment may be needed after the project to verify the minimum requirement. Ask your installer who arranges each one and whether you will be charged.

This article was last updated on 26 October 2026. EPCGuide's analysis covers the domestic EPC register for England and Wales: 30.4 million certificates covering 20.4 million homes. For methodology and interactive data, visit the EPCGuide Research Hub.