Published: 27th August 2024
Energy Performance Certificates (EPCs) are a key part of the commercial property market within the UK. In this article we will outline what an EPC is, the minimum EPC rating for commercial property, and the legal requirements for property owners, tenants and investors.
Firstly, it’s important to understand what an EPC is before we dive into the minimum requirements for commercial properties. An Energy Performance Certificate (EPC) gives information on a building’s energy efficiency. Buildings are rated between an ‘A’ (the most efficient) and a ‘G’ (the least efficient). The certificate not only demonstrates the rating of a building, but recommendations on how to improve the overall energy performance as well.
It is a requirement to obtain an EPC when a property is built, sold or rented.
Since 2016, The Energy Efficient (Private Rented Property) (England and Wales) Regulations 2015, set a new regulation known as the Minimum Energy Efficiency Standards (MEES) in regard to residential sectors. The government introduced this new legislation in order to reduce CO2 emissions and improve the overall quality of privately rented properties.
The first phase of the MEES regulation began on the 1st of April 2018 and outlined that renting a property with an EPC rating below an ‘E’ is unlawful. Looking to the future and further improving standards, the legislation has been passed to now be an EPC rating of ‘D’ by 2025 and a ‘B’ by 2030. Commercial property owners that fail to comply with these ratings could face financial penalties and may be restricted when it comes to leasing a property.
One of the main reasons why EPCs are important is the role they play regarding the reduction of carbon emissions and the goal of decreasing climate change. In order for the UK to achieve the goal of net-zero emissions by 2050, ensuring buildings are energy-efficient is crucial.
Having an energy-efficient property can lower energy bills for both tenants and homeowners. A recent report by the Home Builders Federation (HBF), stated that 84% of newly built houses have an EPC rating of A-B, and on average when compared with older homes, were 59% cheaper on heating bills.
As mentioned above, not complying with EPC regulations can lead to penalties and restrictions for landlords if they do not meet the minimum rating, meaning properties cannot be legally rented out to tenants.
There are various ways of improving an EPC rating, here are a few of them:
Old boilers can really harm an EPC rating, so by replacing them with a newer, more energy-efficient model or solutions such as an Air Source Heat Pump, the rating can be significantly improved.
Replacing old bulbs with newer LED lighting and automatic controls that turn lights off when not in use, can help to reduce energy consumption and improve EPC ratings.
Renewable solutions such as solar panels can help to boost an EPC rating up by two.
Adequate wall, loft and floor insulation can enhance EPC ratings by helping to keep heat in and therefore use less energy to keep a property to the desired temperature.
Understanding minimum EPC ratings for commercial properties is important for both homeowners and landlords. By finding out the EPC rating for your property, you can then begin to take the necessary steps to improving it, not only to adhere to legal requirements but also to ensure you are taking responsibility for the environment and lowering carbon emissions.
BEM Services provides expert knowledge and advice across all sectors of the construction industry, alongside mechanical and electrical engineering expertise. To find out more, contact us today.