EPC (Energy Performance Certificate) requirements for commercial properties vary. It depends on a number of factors.
These factors then influence where the property sits on a scale that measures energy efficiency.
Your commercial property needs to adhere to certain requirements so that it is compliant with commercial property law.
In this article, we will dive deeper into the EPC requirements for commercial property.
What is an EPC Rating?
If you want to know how energy-efficient a property is then you will need an EPC.
An EPC rating is a measure of a building’s energy efficiency. It assesses factors such as:
- Insulation.
- Heating systems.
- Lighting.
To determine how efficiently a property uses energy and produces carbon emissions.
The rating is presented on a scale from A to G, with A being the most energy-efficient and G the least.
This rating not only helps potential buyers or tenants gauge the energy efficiency of a property but also provides recommendations on how to improve its efficiency and reduce energy costs.
The UK government wants to achieve net zero emissions by 2050.
As part of its strategy, the action plan aims to guarantee that the majority of non-residential buildings achieve a minimum EPC rating of C by 2027, with a subsequent target of reaching a B rating by 2030.
How Can You Improve the EPC Rating on Your Commercial Property?
Here are several strategies to consider:
- Insulation – Enhance insulation in the roof, walls, and floors to minimise heat loss and improve thermal efficiency.
- Lighting – Upgrade to energy-efficient lighting systems such as LED bulbs or fluorescent lamps. Install sensors or timers to control lighting usage.
- Heating and Cooling Systems – Replace outdated heating, ventilation, and air conditioning (HVAC) systems with more energy-efficient models. Ensure regular maintenance and cleaning of HVAC equipment for optimal performance.
- Windows and Doors – Install double or triple-glazed windows and energy-efficient doors to minimise heat loss and improve insulation.
- Renewable Energy – Consider incorporating renewable energy sources such as solar panels or wind turbines to generate electricity on-site and reduce reliance on traditional energy sources.
- Building Management Systems (BMS) – Implement a BMS to monitor and control energy usage in the building, optimising settings for heating, cooling, and lighting based on occupancy and usage patterns.
- Sealing Air Leaks – Seal gaps and cracks in the building envelope to prevent air leakage, which can lead to energy waste and reduced thermal comfort.
- Water Efficiency – Install water-saving fixtures and appliances to reduce water consumption, such as low-flow toilets and aerated faucets.
- Behavioural Changes – Educate occupants about energy-saving practices and encourage behaviours such as turning off lights and equipment when not in use.
- Energy Monitoring and Reporting – Implement energy monitoring systems to track energy usage and identify opportunities for further efficiency improvements. Regularly review EPC recommendations and implement any cost-effective measures to improve the rating.
How Much Should a Commercial EPC Cost?
The cost of obtaining a Commercial Energy Performance Certificate (EPC) can vary depending on factors such as:
- The size and complexity of the building.
- The location.
- The service provider.
Generally, the cost typically ranges from £200 to £600 or more, but this can vary significantly.
Smaller and simpler commercial properties may cost less to assess, while larger or more complex buildings may require more time and resources for the assessment, resulting in a higher cost.
The experience and expertise of the assessor, as well as any additional services provided (such as recommendations for energy efficiency improvements), can also affect the overall cost.
It’s advisable to obtain quotes from several accredited assessors to compare prices and ensure that you’re getting a competitive rate.
What are Minimum Energy Performance Standards?
Minimum Energy Efficiency Standards (MEES) constitute a series of regulations designed to enhance the energy efficiency of properties within England and Wales.
Their principal objective is to support the UK government’s ambitious objective of attaining net-zero carbon emissions by 2050.
These regulations mandate a minimum energy efficiency criterion that properties must satisfy before they can be lawfully leased or sold in England and Wales.
What is the Minimum EPC Rating for Commercial Property?
Presently, Energy Performance Certificate (EPC) ratings range from A to G, where A signifies the highest energy efficiency and G indicates the lowest.
Until recently, a minimum E rating was required for granting new leases on non-residential properties.
However, the Government has recently enforced stricter regulations.
Starting from April 1, 2023, all current commercial properties must hold an EPC rating of E or higher.
Consequently, unless exemptions are applicable, landlords with commercial properties under existing tenancies must execute all feasible and cost-effective energy efficiency enhancements mandated by MEES.
Leasing out a commercial property with an EPC rating of F or G will become illegal.
Do You Need EPC to Sell a Commercial Property?
A commercial EPC is needed if you are selling, renting or building a commercial property.
What Are The Exemptions to EPC Requirements?
There are a few exemptions to consider when it comes to an EPC for a building. These include:
- Temporary buildings with a planned time of use of two years or less.
- Buildings that are due to be demolished.
- Places of worship.
- Stand-alone buildings with a total useful floor area of less than 50 square metres.
- Industrial sites, workshops, and non-residential agricultural buildings that have low energy demand.
- Buildings that are to be used for less than four months of the year.
- Listed buildings or those within conservation areas where compliance with certain energy efficiency measures would unacceptably alter their character or appearance.
- Certain types of buildings are not required to have an EPC when constructed, such as workshops, non-residential agricultural buildings with low energy demand, and some temporary buildings.
Commercial Property Law Experts – Brown Turner Ross
An EPC is vital when it comes to commercial property.
Understanding how they work, why they are needed and the process involved in obtaining them will stand you in good stead when it comes to commercial property.
If you would like to know more about EPC ratings for commercial property then we can help.
We have many years of experience in commercial property law.
If you would like to know more about our services then please contact us.