An Energy Performance Certificate (EPC) rates how energy efficient a building’s construction is on a scale of A to G (A being the most efficient). The certificate is accompanied by a Recommendation Report, which provides suggestions for improving the efficiency of the building.
Under the Energy Performance of Buildings (England and Wales) Regulations (EPBR), it is a legal requirement to produce an Energy Performance Certificate (EPC) for buildings constructed, sold or let after 2008 in the UK.
From April 2023, landlords of all privately rented properties will need to have a valid EPC rating of E or above in accordance with the Minimum Energy Efficiency Standards (MEES) regulations.
Who needs an EPC?
If you want to sell or let your commercial property, you will need to have a valid EPC before the property is placed on the market to inform prospective buyers or tenants about the building’s energy performance. You will need to be able to provide the EPC at the time of exchange of contracts by law.
From April 2023, landlords of all privately rented properties will need to have a valid EPC rating of E or above in accordance with the MEES regulations.
An EPC is also needed, for example when a building is newly constructed or when there are changes resulting in more or fewer parts of the building being used for separate occupation.
In contrast to DECs which need to be renewed annually, an EPC can be valid for up to 10 years if no major renovation occurs on the building.
From the 1 April 2018, the Minimum Energy Efficient Standards (MEES) came into effect for rented commercial buildings. These changes made it unlawful to rent or lease a commercial property with an Energy Performance Certificate (EPC) rating below an E. This will expand to include existing tenants and leases from 1 April 2023.
Minimum Energy Efficiency Standards and changes to EPCs
The Minimum Energy Efficient Standards (MEES) affects landlords of privately rented properties. Under MEES these properties must have at least an Energy Performance Certificate (EPC) rating of E before granting a new tenancy to new or existing tenants.
From 1 April 2023 these requirements will apply to all private rented properties in England and Wales, even where there has been no change in tenancy arrangements for non-domestic properties.
There is an open consultation looking to change the minimum requirement to a B rating by 2030, and for all new buildings by 2025, but this is not yet law.
If you are selling or letting a property:
- Ensure your EPCs are compliant with Government regulatory requirements
- Improve the EPC grade of your buildings to boost their commercial value utilising the report recommendations for areas to improve building energy efficiency
- Have peace of mind that your fully compliant EPC is valid for 10 years, unless any major renovations are made
If you would like to understand more about your buildings and make energy and cost savings:
- Better understand the energy efficiency of your buildings based on the construction (the building fabric and the heating, ventilation, cooling and lighting systems) and areas for development
- Understand the theoretical carbon emissions of your buildings to inform your sustainability and net-zero plans
- Achieve operational cost-savings and reduce consumption through implementing the recommended improvements
- Utilise the report recommendations to improve your estate’s energy efficiency
To share details about the energy efficiency potential of the buildings in your estate:
- Demonstrate the improved performance of your building’s energy efficiency with a new EPC
- Differentiate from competitors by demonstrating energy savings and efficiency
- Temporary buildings only going to be used for 2 years or less
- Places of worship or for other religious activities
- Unheated Industrial site, workshop or non-residential agricultural building.
- Detached buildings with a total floor space under 50 square metres
- Buildings due to be demolished with all the relevant planning and conservation consents
The owner or landlord of a property for sale or let can be fined between £500 and £5,000 for failing to make an EPC available to any prospective buyer or tenant.
Local Authorities are the “enforcement authority” and will be responsible for enforcing compliance with the EPCs, DECs and Air Conditioning Inspections.
How TEAM can help
Our consultants are accredited Energy Assessors that can deliver level 3, 4 and 5 non-domestic EPCs that are compliant with the requirements of the EPBR.
Our comprehensive EPC services include:
- A site survey and data gathering
- 3D modelling and data input using Government approved software
- A calculation of the building Energy Performance Asset Rating
- A non-domestic EPC recommendation report
- Lodgement of the EPC and recommendation report to the official Government register
- Additionally, we can support you to become compliant with the MEES legislation
Understanding an EPC
EPCs act as a guide to let potential buyers or tenants know how costly a property will be to heat and light, and what its carbon dioxide emissions are likely to be. An EPC will also state what the energy-efficiency rating would be if it was newly built or typical of the existing buildings, plus highlights cost-effective ways to achieve a better rating. Even if you rent your building, some improvements noted on the EPC may need to be implemented, such as switching to more energy-efficient light bulbs, to comply with regulations on the minimum EPC rating.
If you have ever wondered information is available within an EPC this helpful guide will explain what each component means.
