Landlord Energy Efficiency Grants: The Complete 2026 Guide
Don't pay full price for EPC upgrades. Multiple grant schemes can cover a significant portion, sometimes all, of the cost.
The government has committed billions of pounds to improve the energy efficiency of UK homes. A substantial portion of that funding is accessible to private landlords, yet many still pay full price for upgrades that could have been partially or entirely covered by grants.
With all private rented properties needing to reach EPC C by October 2030, now is the time to understand what is available. This guide covers every major scheme: who qualifies, how much you can get, and the steps to apply.
Last reviewed: July 2026
Grant Status at a Glance (2026)
| Scheme | Status (2026) | Max amount | Who it's for |
|---|---|---|---|
| ECO4 | Open, funded to March 2026 | Up to 100% free | Tenant on qualifying benefits or LA Flex |
| Boiler Upgrade Scheme | Open, extended to March 2030 | £7,500 | Any landlord, no income means-test |
| Warm Homes: Local Grant | Open in participating councils | Up to £30,000 | EPC D to G, tenant income under £36,000 |
| Great British Insulation Scheme | Closed (ended 31 March 2026) | Variable | EPC D to G, single insulation measure |
Overview: What's Available
There are currently four main grant routes for private landlords, plus local authority top-up schemes in some areas. Here is a quick comparison:
| Scheme | Max Value | What It Covers | Key Eligibility |
|---|---|---|---|
| ECO4 | Up to £20,000+ | Insulation, heating, heating controls | Tenant on qualifying benefits OR low EPC in deprived area |
| Boiler Upgrade Scheme | £7,500 | Air/ground source heat pumps | Property must meet insulation requirements |
| Warm Homes: Local Grant | Up to £30,000 | Insulation, heating, renewables | EPC D–G, low-income tenant or area |
| Great British Insulation Scheme | Closed (ended 31 March 2026) | Single insulation measure | EPC D–G, income or area eligibility |
ECO4: Energy Company Obligation
ECO4 is the largest single source of free energy efficiency funding for UK homes. The scheme legally requires large energy suppliers (British Gas, EDF, E.ON, OVO, and others) to fund improvements to low-income and low-energy-efficiency homes. For landlords, this can mean free insulation and heating upgrades worth thousands of pounds.
What ECO4 Typically Covers
- Cavity wall insulation
- Solid wall insulation (internal or external)
- Loft insulation
- Underfloor insulation
- First-time central heating systems
- Boiler replacements (in some cases)
- Smart heating controls
- Heat pumps (via ECO+ flex)
ECO4 Eligibility Routes
Route 1: Tenant on qualifying benefits
If your tenant receives Universal Credit, Housing Benefit, Pension Credit, Child Tax Credit, or certain other means-tested benefits, the property may qualify regardless of EPC rating.
Route 2: Area-based (ECO+ flex)
Properties rated EPC D, E, F, or G in areas with high levels of deprivation (using IMD data) may qualify through local authority flex routes, without requiring tenant benefit eligibility.
Boiler Upgrade Scheme (BUS)
The Boiler Upgrade Scheme provides a flat-rate grant towards the installation of low-carbon heating systems. It was extended through to 2028 and is particularly valuable for properties where a heat pump can replace an ageing gas boiler while also delivering significant EPC score gains.
BUS Eligibility Requirements
- Property must have a valid EPC
- No outstanding recommendation for loft or cavity wall insulation on the EPC (must be done first)
- Installer must be MCS certified
- Grant paid directly to installer, reducing your invoice
- One grant per property per scheme
- Landlords and homeowners both eligible
Warm Homes: Local Grant
The Warm Homes: Local Grant is the government's newest flagship scheme, announced in January 2026 as part of the Warm Homes Plan. Delivered through local authorities, it provides up to £30,000 per property (up to £15,000 for energy-efficiency measures plus up to £15,000 for low-carbon heating) for improvements to privately rented homes rated EPC D to G.
Private landlords are specifically included in the scheme, provided the property is owner-occupied after improvements, or let to tenants meeting income criteria. This is a significant opportunity, particularly for landlords with older and harder-to-treat properties.
What It Covers
- All insulation types (including solid wall)
- Heat pumps and low-carbon heating
- Solar panels and battery storage
- Heating controls and smart thermostats
- Double or triple glazing
- Draught proofing and ventilation
- Electric vehicle charging (in some local schemes)
Eligibility at a Glance
Great British Insulation Scheme (GBIS)
GBIS has closed. It closed to new applications in January 2026 and the scheme ended on 31 March 2026, so it is no longer available. The details below describe how it worked. The Great British Insulation Scheme was a companion to ECO4, with broader eligibility. While ECO4 focuses on low-income households, GBIS was also available to properties rated EPC D to G with household incomes up to £31,000 (in some cases higher). It funded a single insulation measure per property: the most impactful one recommended.
GBIS vs ECO4
Typical GBIS Measures
- Cavity wall insulation (most common)
- Loft insulation (new or top-up)
- Solid wall insulation (if cavity not suitable)
- Flat roof or pitched roof insulation
- Park home insulation
Combining Multiple Grants (Stacking)
It is sometimes possible to use more than one scheme on the same property, dramatically reducing your out-of-pocket costs. The key is understanding which schemes can and cannot be combined.
Generally Compatible
- ECO4 + BUS: Get insulation funded by ECO4, then claim BUS for heat pump
- ECO4 + WHLG (different measures): ECO4 for one measure, Warm Homes: Local Grant for another, subject to council rules
- ECO4 + Local Authority grant: Some local top-up schemes work alongside ECO4
Generally Not Compatible
- ECO4 + WHLG for same measure: Cannot claim two grants for the same improvement
- Two grants for the same measure: Only one free insulation grant per improvement type
- BUS + another heating grant: BUS cannot be combined with other government heating grants for the same system
Grants and the £10,000 Cost Cap
The £10,000 cost cap is the maximum a landlord has to spend out of pocket on EPC improvements before they can register an exemption and keep letting legally. The detail most landlords miss: grant funding does not count towards the cap. Only money you personally spend counts.
In practice this means grants extend your total improvement budget well beyond the cap. Secure grant funding for the expensive items (heating, insulation), then use your personal cap allowance on the smaller measures grants rarely cover: glazing, draught-proofing, smart controls.
Tax Relief on EPC Improvements
Grants are not the only way to bring the cost down. HMRC lets landlords deduct some improvement costs from rental income, depending on whether the work counts as a revenue expense or capital expenditure.
Revenue expenses (deductible against rental income)
- Like-for-like boiler replacement: swapping a gas boiler for an equivalent gas boiler is a repair, fully deductible
- LED lighting: treated as a consumable maintenance cost
- Hot water cylinder jackets: trivial cost, classified as maintenance
- Draught-proofing replacement: replacing existing draught-proofing with broadly equivalent modern materials falls under HMRC's "modern materials" exception
Capital expenditure (not deductible against rental income)
- New insulation: loft, cavity wall, solid wall, floor
- Heat pump installation
- Double glazing replacing single glazing
- Solar PV panels
Capital improvements cannot be offset against rental profits in the year you make them, but they can be set against capital gains tax when you sell. For properties held in a company, capital allowances may apply to some qualifying plant and machinery.
Grant-funded improvements cannot be claimed as an expense at all, because you did not pay for them. Our full tax relief guide covers every improvement category and the three routes to recovering costs.
Five Mistakes Landlords Make with Grants
Assuming tenants need to be on benefits
ECO4 Flex lets your council refer the property on low-income or cold-home grounds without a formal benefit claim, and the Warm Homes Local Grant has an LA Flex pathway for low-income tenants who are not on formal benefits. GBIS previously offered a Council Tax band route, but that scheme closed on 31 March 2026.
Waiting until late 2026 for ECO4
Installers are already booking months ahead and the December 2026 deadline is firm. Leaving it to Q4 2026 risks not being able to secure an installer appointment at all.
Installing a heat pump before insulating
A heat pump in a poorly insulated property costs more to run and has to be larger. Insulate first, then install. The heat pump grant then covers a cheaper system.
Ignoring the cost cap interaction
Grant-funded work does not count towards the £10,000 cap. Plan grant applications around the most expensive measures, then spend your cap allowance on everything else.
Not keeping receipts from October 2025
Qualifying spend towards the cost cap counts from 1 October 2025. Improvements already paid for without documentation may not count towards your cap.
How to Apply: Step-by-Step
- 1
Get an up-to-date EPC
An EPC lodged in the last 10 years is generally acceptable, but a recent assessment gives you a more accurate score and up-to-date recommendations. This is your starting point for every grant application.
- 2
Check your eligibility
Use our grant checker tool to identify which schemes your property qualifies for, based on EPC rating, location, and tenant circumstances. Different routes have very different requirements.
- 3
Contact an approved installer
For ECO4, work through an energy company or TrustMark-registered ECO4 installer. For BUS, the installer must be MCS certified. Ask them to assess grant eligibility as part of their initial survey.
- 4
Get your tenant's co-operation (if needed)
For ECO4 benefit-route applications, your tenant must apply as the primary claimant. You will need to provide a letter of authority. Warm Homes: Local Grant may also require evidence of tenant income.
- 5
Plan the order of works
If combining ECO4 insulation with a BUS heat pump, insulation must be completed first. Plan sequencing carefully to avoid losing grant eligibility for later measures.
- 6
Commission the works
Grants are generally paid directly to the installer, reducing your invoice. You do not usually receive the grant as cash; your contribution is simply lower.
- 7
Get a new EPC after works
Once improvements are complete, commission a new EPC assessment to confirm your new rating. This is essential for demonstrating compliance and updating the EPC register.
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Frequently Asked Questions
Can landlords get grants for EPC improvements?
Yes. Several government schemes offer grants to private landlords, including ECO4 (free or subsidised insulation and heating), the Boiler Upgrade Scheme (£7,500 towards heat pumps), and the Warm Homes: Local Grant (up to £30,000 per property, made up of up to £15,000 for energy-efficiency measures plus up to £15,000 for low-carbon heating). Eligibility criteria vary by scheme and local authority area.
How much can a landlord get in grants for EPC upgrades?
Depending on the property and which schemes are combined, landlords can receive anywhere from a few hundred pounds to over £30,000 in total support. ECO4 alone can cover insulation and heating worth £5,000–£20,000. The Boiler Upgrade Scheme adds £7,500 towards heat pumps. Stacking schemes is possible in some cases.
What is ECO4 and how does it work for landlords?
ECO4 (Energy Company Obligation 4) requires large energy suppliers to fund energy efficiency improvements. Landlords with tenants on qualifying benefits, or properties in areas with low energy efficiency scores, may be eligible for free insulation, heating upgrades, and other improvements. Landlords must give permission for works and usually sign a letter of authority.
Can landlords claim the Boiler Upgrade Scheme?
Yes. The Boiler Upgrade Scheme (BUS) provides £7,500 towards air source heat pump installation and £7,500 towards ground source heat pumps. Landlords are eligible provided the property meets the scheme's criteria (including no outstanding insulation recommendations on the EPC). The grant is paid directly to the registered MCS installer.
Can you combine multiple EPC grants on the same property?
Sometimes. ECO4 and the Warm Homes: Local Grant cannot usually be combined on the same measure, but the Boiler Upgrade Scheme is generally separate and can be claimed alongside other insulation grants. The Great British Insulation Scheme closed on 31 March 2026, so it is no longer available to combine. Always check current rules as schemes update.
Is ECO4 still available in 2026?
ECO4 is the current phase of the Energy Company Obligation scheme and was extended to run until 31 December 2026, with the government consulting on a successor scheme. Measures must be installed by then and no new applications are accepted after that date, so apply well before the deadline. Availability depends on local energy company activity in your area. Some installers still have ECO4 funding available for eligible properties, so it is worth checking now before funding runs out.
What is the Great British Insulation Scheme?
The Great British Insulation Scheme (GBIS) was a separate scheme from ECO4, focused specifically on single-measure insulation improvements for properties rated D to G. It closed to new applications in January 2026 and ended on 31 March 2026, so it is no longer available. It had broader eligibility than ECO4 (including higher-income households in lower-rated properties) and provided free or subsidised insulation to those who qualified.
Do I need to tell my tenants about grant work?
Yes. Tenants must be informed about any planned works and their written consent is generally required. Under ECO4 specifically, the tenant usually needs to be the named applicant if they are claiming on the basis of benefits eligibility. Landlord co-operation (via a letter of authority) is then required.
Sources
Related Articles
ECO4 Landlord Guide
Everything landlords need to know about accessing ECO4 funding.
Boiler Upgrade Scheme Guide
How the £7,500 BUS grant works for landlords and how to claim.
Cost Cap and Exemptions
If grants still leave you over £10,000, here's how the cost cap works.
EPC C by 2030: Full Timeline
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