If you’re wondering what energy grants for private landlords are available, there is good news. Whether you have been renting out properties for years or you’re just getting started in the property rental business, energy-saving grants are available that not only save you money but also make your property more attractive to potential tenants. From heating upgrades to loft and wall insulation, you can choose from a number of energy improvements that bring long-term benefits to you and your tenants.
In this article, we explore the Energy Company Obligation (ECO) grant scheme and other grants that you might be eligible for as a landlord. With a funding pot of £4 billion, these generous grant schemes are available for rental properties throughout the UK. Read on to learn more about the improvements available and how to qualify. Short on time? Use our grant checker now to enter a few details and find out if you’re eligible for an energy grant for landlords.
What Are the Rules on EPCs For Rented Properties?
Renting out a domestic property with an EPC (Energy Performance Certificate) rating below E is against rental regulations unless you have an exemption.
Here’s how the rules currently stand:
- If you plan to rent a property with an EPC rating of F or G, it must be improved to at least an E or registered as exempt before a new tenancy can begin.
- If you are already renting out a property with an EPC lower than E, you must improve its rating immediately or register for exemption.
- If the property is empty and you don’t plan to rent it out, you don’t need to take any action until you rent it again.
Fortunately, there are grants available to assist with meeting EPC requirements. Let’s look closer at these grants, what they offer, and how you can apply.
What is the Energy Company Obligation Grant Scheme (ECO)?
The Energy Company Obligation grant scheme is designed to make inefficient properties throughout the UK efficient. The scheme has been around for a while and is now in its fourth phase called ECO4. Even though it’s not a new scheme, many landlords and tenants don’t realise they are eligible for energy improvement funding.
The current ECO4 scheme offers funding for heating upgrades, insulation, smart thermostats, and incentives to switch to renewable energy technologies, such as Air Source Heat Pumps (ASHPs).
These schemes can help landlords meet the MEES (Maximum Energy Efficiency Standard) regulations on their rental properties without the high costs involved with normal property upgrades.
ECO is planned to run until 2026 or until all funding has been exhausted. As of May 2024, 419,568 measures had been installed across over 100,000 UK homes. It’s the most extensive grant scheme currently available to landlords and provides funding for various energy efficiency measures. Remember, tenants must meet eligibility criteria, or the property must be in an area with high fuel poverty levels.
What Energy Improvements Are Available For Rental Properties?
Energy grants for landlords under the ECO scheme offer a wide selection of energy improvements. The scheme focuses on improving existing heating methods and making homes more efficient. Here’s what’s available:
Wall Insulation Grants
Cavity wall insulation grants are available for rental properties with cavity walls and where the primary heating source is Oil, LPG, solid fuel or electric. In some cases, properties with gas boiler heating may also be eligible. Not sure if your property has cavity walls? If it was built after the 1920s, there’s a good chance it does!
Internal Wall Insulation and External Wall insulation grants are available for solid-walled rental properties. If your property was built before 1920, it will likely have solid walls.
Loft Insulation Grants
Loft insulation grants are available for rental properties if there is 150mm or less of existing loft insulation. Once installed, this type of insulation prevents heat from escaping and helps to reduce energy costs.
Room-in-Roof insulation grants are also available for rental properties if the dwelling has a room with sloping ceilings. Properties that may benefit from room in roof insulation are dormer bungalows and properties which had a loft conversion prior to 2003 (which is when the building regulations were changed to ensure that all loft conversions were installed with adequate insulation).
Heating Grants
Boiler replacement or repair grants – unfortunately, these grants aren’t currently available to landlords or tenants.
Electric storage heater grants for landlords are available where the existing heating is electric or no heating system exists.
First-time central heating grants are available for rental properties that have not previously had central heating or radiators. Sometimes, smart thermostats may also be included as part of the heating improvements.
Who Can Apply For an ECO4 Grant?
Homeowners, landlords, and tenants can apply for an ECO4 grant. However, the application must be submitted in the tenant’s name if a property is privately rented. Both the landlord and tenant must consent to the work being completed.
There are three main routes to ECO4 grant qualification:
Criteria 1: The Tenant is Receiving Benefits
A tenant may qualify for funding if they are in receipt of one of the following tax credits or benefits:
- Child Tax Credit
- Working Tax Credit
- Employment and Support Allowance (ESA) – Income Based
- Housing Benefit
- Income Support
- Jobseekers Allowance (JSA) – Income Based
- Pension Credit Guarantee Credit
- Pension Credit Savings Credit
- Universal Credit
- Child Benefit (this is subject to income thresholds)
Eligibility Criteria 2: ECO4 Flex Scheme
ECO4 offers an additional route to eligibility through the LA Flex scheme. This scheme enables tenants to apply for funding if the total income of the property is below £31,000 per year; or alternatively if a tenant has a long term health condition such as arthritis, diabetes, cardiovascular problems, a respiratory disease etc.
LA Flex provides funding to:
- Households with an annual income (before tax) of less than £31,000
- Vulnerable households (including those with older or young people in the household or where debts are present)
- Households where somebody has a health condition, such as respiratory disease, cardiovascular disease, or mobility issues.
You can apply using our grant checker if you or your tenants qualify for ECO4 funding. Our grant specialists are on hand to advise you about eligibility and help you with your application.
Boiler Upgrade Scheme Grants for UK Landlords
If your property has an inefficient fossil-fuel heating system installed, such as gas or LPG, you could be eligible for funding under the Boiler Upgrade Scheme (BUS). This scheme offers options such as:
- £7,500 towards an air source heat pump
- £7,500 towards a ground source heat pump
- £5,000 towards a biomass boiler (for properties with solid fuel heating)
Applying For Energy Saving Grants For Landlords
If you’re a landlord looking to make a difference to your property and the comfort of your tenants, applying for an ECO4 grant could be a wise decision. You can use our eligibility checker to see if you qualify and learn more about the grants available. Join the hundreds of thousands of homeowners transforming their homes with energy-saving improvements.
