What is ECO4 for Social Housing?
ECO4 (Energy Company Obligation phase 4) is a UK government-funded programme running from April 2022 to March 2026, designed to help reduce fuel poverty, improve energy efficiency in homes, and lower carbon emissions.
For social housing providers, ECO4 represents a significant opportunity to access grant funding for retrofitting housing stock-particularly homes with poor EPC ratings (E, F, or G). At Efficient Energy Homes Ltd, we act as a trusted PAS 2035 Managing Agent, supporting local authorities, housing associations, and registered providers throughout the full compliance and delivery process.
Eligibility Criteria for Social Housing
Under ECO4, properties in the social rented sector qualify for funding based primarily on their energy performance:
- EPC E, F or G: Automatically eligible
- EPC D: Eligible only when using an Innovation Measure
Additional rules:
- No tenant income or benefit checks are required
- Void properties are eligible and can be retrofitted prior to re-letting
- Sheltered housing, HMOs, and temporary accommodation may be eligible if they meet EPC criteria
- Must demonstrate an uplift to EPC Band C or better, unless formally exempt
- Infill properties (e.g. within same block or terrace) may be included when paired with eligible homes to support cohesive upgrades
Pre-Installation Requirements
To ensure energy efficiency improvements are effective, the following insulation pre-conditions must be met:
- For homes rated EPC E, F or G: All cavity walls and all roof types (loft, flat, room-in-roof) must be insulated
- For homes rated EPC D: At least one major insulation measure must be present or included in the project
These conditions must be fulfilled before installing low carbon heating systems, such as air source heat pumps, or renewable technologies like solar PV.
Measures Covered Under ECO4
ECO4 supports a wide range of energy-saving measures, including:
- External & internal wall insulation
- Loft, flat roof, and room-in-roof insulation
- Underfloor insulation
- Airtightness & draught-proofing
- Air Source Heat Pumps (ASHP)
- Solar PV & battery storage
- Mechanical ventilation & Part F compliance upgrades
All measures must be delivered in line with PAS 2035 and installed by a TrustMark-registered, PAS 2030-certified installer.
Social Housing Providers are permitted to use installers from their own procurement frameworks, provided those contractors are appropriately accredited under PAS 2030 and MCS (where required).
How ECO4 Funding Works
ECO4 funding is calculated using:
- Annual Bill Savings (ABS) – the estimated energy cost reductions
- EPC band improvement achieved by the measures
- Deemed scoring methodologies issued by Ofgem
Properties must follow a whole-house approach under PAS 2035, and works must demonstrate meaningful improvements in efficiency and occupant comfort. There is no flat-rate funding amount-each home’s funding is based on the expected performance uplift.
Why Choose Efficient Energy Homes Ltd?
We provide end-to-end ECO4 delivery support tailored for the social housing sector:
- Resident engagement and early-stage liaison
- Full PAS 2035 Retrofit Assessments & Coordination
- Innovation measure selection and technical guidance
- TrustMark compliance, documentation & lodgement
- On-site quality checks, ventilation flow testing, and airtightness assessments
- Connection to accredited PAS 2030 installation partners (or we’ll work with your own)