The ECO Scheme: How Tenants & Homeowners Can Benefit from Energy Efficiency Upgrades
The Energy Company Obligation (ECO) scheme is a government-backed initiative designed to improve the energy efficiency of homes across the UK. Whether you are a tenant or homeowner, ECO offers significant benefits, helping to reduce energy bills, improve home comfort, and lower carbon emissions.
With rising energy costs, many households struggle to keep their homes warm. The ECO scheme provides free or subsidised energy-saving measures, making homes more affordable to heat while contributing to the UK’s net-zero goals.
What is the ECO Scheme?
The ECO scheme requires energy suppliers to install energy-saving measures in homes, particularly for low-income and vulnerable households. The latest version, ECO4, runs until March 2026 and focuses on reducing fuel poverty and helping homes become more energy-efficient.
Unlike previous versions, ECO4 prioritises whole-house improvements, ensuring homes receive multiple upgrades rather than just one. This means better insulation, heating systems, and renewable energy solutions for eligible households.
Who Can Benefit from the ECO Scheme?
Homeowners
Lower energy bills – Upgrades help reduce heating costs. Increased property value – Energy-efficient homes are more attractive to buyers. Improved home comfort – Better insulation keeps homes warmer in winter and cooler in summer.
Tenants
Reduced heating costs – Energy-efficient homes mean lower bills. Better living conditions – Warmer, healthier homes with fewer damp and mould issues. Landlord incentives – Landlords can access funding to improve rental properties.
Important: Tenants must get landlord permission before applying for ECO-funded improvements.
What Upgrades Does the ECO Scheme Offer?
The ECO scheme covers a range of energy-saving measures, including:
Insulation Upgrades
Loft insulation – Prevents heat loss through the roof. Cavity wall insulation – Reduces heat escaping through walls. Solid wall insulation – Ideal for older homes without cavity walls.
Heating System Improvements
Boiler replacements – Upgrading inefficient boilers to modern, energy-saving models. Central heating installations – Providing heating systems for homes without one. Smart heating controls – Allowing better temperature regulation.
Renewable Energy Solutions
Solar panels – Generating free electricity from sunlight. Air source heat pumps – Efficient heating alternatives to gas boilers.
How to Apply for the ECO Scheme
Applying for the ECO scheme is simple.
Check eligibility – You may qualify if you receive benefits such as Universal Credit, Pension Credit, or Housing Benefit. Contact an energy supplier – Even if they are not your current provider, they may offer ECO-funded upgrades. Get a retrofit assessment – A professional will assess your home and recommend improvements. Installation process – Approved upgrades will be installed at little to no cost.
Tip: Local councils can refer residents for ECO funding under ECO Flex, even if they do not receive benefits.
Why the ECO Scheme Matters
The ECO scheme is more than just free home upgrades—it is about creating a sustainable future. By improving energy efficiency, it reduces carbon emissions, helps the UK meet its climate goals, cuts household expenses, and makes energy bills more affordable. It also improves living conditions, making homes warmer and healthier for families.
Since 2013, over 2.3 million homes have benefited from 3.1 million installations, proving the ECO scheme is transforming lives across the UK.
Final Thoughts: Should You Apply?
If you are a homeowner or tenant, the ECO scheme is a fantastic opportunity to make your home warmer, more efficient, and cheaper to run.
Key Takeaways
Free or subsidised energy upgrades for eligible households. Lower energy bills and improved home comfort. Better insulation, heating systems, and renewable energy solutions. Simple application process—check eligibility and contact an energy supplier.
Want to learn more? Check out the official ECO Scheme Guide for full details.
Ready to Upgrade Your Home?
Apply for the ECO scheme today and start saving on energy bills while making your home more sustainable.
