Sarah – A Private Tenant Leveraging the ECO4 Grant

Background: Sarah, a private tenant in her early 30s, lives in a three-bedroom semi-detached home built in the 1980s. The property had an EPC rating of “E,” and despite being generally affordable, Sarah found the home uncomfortable during colder months due to poor insulation and an aging heating system. Her energy bills were high, and she was interested in reducing costs and making her living environment more comfortable.

Sarah learned about the ECO4 scheme, which aims to improve energy efficiency in low-income, vulnerable, or fuel-poor households. Since she met the financial criteria and her home qualified for the scheme, Sarah reached out to her landlord to discuss applying for the ECO4 grant. The landlord was open to the idea, seeing potential benefits in property value and regulatory compliance.

Initial Property Assessment: An accredited assessor conducted an initial evaluation, identifying several inefficiencies, including outdated insulation and an old electric heating system. These issues were contributing to high energy costs and low energy efficiency, affecting both Sarah’s comfort and the property’s attractiveness to future tenants..

Energy Efficiency Improvements

1. Internal Wall Insulation and Loft Insulation:

• Before: The property had limited wall and loft insulation, leading to significant heat loss during winter.
• Upgrade: Contractors added Internal wall insulation and upgraded the loft insulation under the ECO4 grant, reducing overall heat loss.
• Impact: This improvement resulted in better thermal retention, making the property warmer and reducing Sarah’s heating bills.

2. Installation of an Air Source Heat Pump (ASHP):

• Before: The property relied on an old electric heating system, which was inefficient and costly to run.
• Upgrade: An air source heat pump was installed, providing a more energy-efficient source of heating.
• Impact: The ASHP reduced reliance on electric heating, leading to lower energy costs and a smaller carbon footprint.

3. Solar PV Panels:

• Before: The home had no renewable energy sources.
• Upgrade: A 4 kW solar panel system was installed on the roof.
• Impact: The system reduced electricity costs, allowing Sarah to generate a portion of his power and contribute to long-term savings

4. LED Lighting and Smart Thermostat Installation:

• Before: The house used traditional incandescent bulbs, and heating was controlled by outdated manual dials.
• Upgrade: LED lighting and a smart thermostat were installed, allowing for energy-efficient lighting and remote control over heating settings.
• Impact: These improvements helped reduce overall energy usage and gave Sarah more control over her energy consumption.

Outcomes

Improvement in EPC Rating:

• Before: The property had an EPC rating of “E.”
• After: Following the improvements, the property’s EPC rating improved to “B.” This new rating made the property much more energy-efficient and compliant with anticipated future rental regulations.

Financial Impact and Property Valuation:

• Energy Savings for the Tenant:
  Sarah’s monthly energy bills dropped by approximately 50%, providing her with substantial savings. She reported greater comfort and was pleased with the changes, leading her to sign a lease renewal.

• Increase in Property Valuation for the Landlord:
• Before ECO4 Improvements: The property was valued at £250,000.
• After ECO4 Improvements: The upgrades increased the property’s value by around 10%, reaching an estimated £275,000.
• Reason for Value Increase: The improved EPC rating and energy-efficient features made the property more attractive, both to tenants and potential buyers, enhancing its long-term market value.

• Regulatory Compliance and Reduced Vacancy for the Landlord:
  The landlord benefited from the property meeting higher energy standards, which may become required under future regulations. Furthermore, the improvements made the property more appealing to potential tenants, reducing the likelihood of vacancy periods.

• Positive Landlord-Tenant Relationship:
  The landlord’s willingness to allow the tenant to apply for the ECO4 grant fostered a positive relationship. Sarah felt her comfort was valued, which made her more inclined to stay long-term. This stability was beneficial to the landlord, reducing tenant turnover and associated costs.

Summary

By supporting Sarah’s application for the ECO4 grant, the landlord reaped significant benefits, including an increased property valuation and greater market appeal. The energy efficiency improvements provided Sarah with lower energy bills and a more comfortable home, while the landlord gained a more valuable, compliant, and tenant-friendly property. This case highlights how tenants can leverage energy grants to enhance their quality of life while contributing to the long-term value of their rental property.