Non Domestic EPCs
Commercial Energy Performance Certificates (EPC) (Also known as Non-Domestic EPCs) are legally required for the sale or let of all commercial properties within the UK. Each Commercial EPC shows prospective purchasers or occupants the calculated energy efficiency of the building with an energy classification ranging from A – G which allows similar buildings to be compared. Each Non Domestic Energy Performance Certificate also has an accompanying recommendation report which highlights a range of potential improvement measures.
The importance of Commercial EPC ratings has significantly increased following the introduction of the Minimum Energy Efficiency Standards (MEES) in April 2018, as it is now prohibited to lease commercial properties with an EPC rating within the F or G bands until work has been carried out to improve the rating to at least an E. There are also further proposals that the standard could be raised further to a D rating by 2025 and a C rating by 2030.
.Who do the Minimum Energy Efficiency Standards apply to?
From 1 April 2018, landlords of privately rented property in England or Wales must ensure that their properties reach at least an Energy Performance Certificate (EPC) rating of E before granting a new tenancy to new or existing tenants.
These requirements will apply to all private rented properties in England and Wales, even where there has been no change in tenancy arrangements from 1 April 2023 for non-domestic properties.
There are also further proposals that the standard could be raised further to a D rating by 2025 and a C rating by 2030.
What if a building doesn't comply with MEES requirements?
The first step would be to arrange an EPC survey. One of our Assessors would gather the information required to produce an EPC but would not necessarily need to lodge the EPC, therefore saving the client multiple lodgement fees.
Our Assessor would then be in a position to advise what improvement could be made to the building to improve the EPC rating, keeping a strong emphasis on cost effective and practical improvement measures.
Once the client has agreed and completed the improvements, we can then re-visit the property for verification and register the newly compliant EPC.
Are there any exemptions from the Minimum Energy Efficiency Standards?
Yes there are exemptions for some landlords. Further details can be found on the Government website.
Do the Minimum Energy Efficiency Standards apply to existing tenancies?
From 1st April 2023 the MEES requirements apply to all non-domestic buildings, regardless of whether there is an existing tenancy. There are some exceptions to the requirements which can be viewed here.
Who enforces the Minimum Energy Efficiency Standards?
Local Authorities are responsible for enforcing MEES regulations.
The penalty for renting out a property for a period of fewer than three months in breach of the MEES Regulations will be equivalent to 10% of the property’s rateable value, subject to a minimum penalty of £5,000 and a maximum of £50,000.
Renting out a non-compliant property for a period of more than 3 months can result in a fine of 20% of the rateable value with a minimum fine of £10,000 to a maximum of £150,000
Do properties being sold need to comply with the MEES regulations?
No, however since the introduction of MEES legislation purchasers may be unwilling to complete on a property that they cannot rent out without making improvements.
How long does a Commercial EPC assessment take?
The size and complexity of a project determine the commercial assessment required. Professional Energy Services (PES) strives to produce Commercial EPCs within a turnaround time of 2-3 working days from preparation and reviewing the commercial site.
Professional Energy Services recognizes the importance of delivering the commercial EPC and the certificate on schedule. We make every effort to produce the certificate within the requested timeframe of our clients.
What does an EPC assessment involve?
An EPC assessment is carried out by a qualified energy assessor who will inspect the property and gather information about its construction, insulation, heating, and lighting systems.
During the assessment, the energy assessor will take measurements and gather data on various aspects of the building, such as the type and thickness of insulation, the age and efficiency of the heating system, and the type of windows and doors. They will also consider factors such as the building’s orientation, its use of renewable energy sources, and the amount of ventilation.
Once all the necessary information has been collected, the energy assessor will use specialized software to calculate the building’s energy efficiency rating and produce an Energy Performance Certificate.