Energy Performance Certificates (EPC)
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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?
f 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 (MEES) 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.