Imminent Changes to Commercial EPCs – Minimum Energy Efficiency Standards
EPC ImprovementFocus
The government is making significant changes to legislation surrounding Energy Performance Certificates (EPCs). These changes will affect clients regarding letting or selling property.
What will the main changes be?
From April 2023, it has been unlawful to continue to let commercial properties with an EPC rating below E in England and Wales. This includes properties with ongoing tenancies. Further proposals under consultation will require new lettings to be a C rating on rented commercial properties (with some exceptions), applying to any continuing tenancies in 2028.
As part of the consultation, the proposal of all properties being a band B by April 2030 has gained strong support. Many of our commercial clients are considering properties below a B as dead assets
What will the financial penalties be?
The following penalties could be imposed for continuing to let non-compliant property:
Period of Letting | Potential Fines |
|---|---|
Less than 3 months | 10% of the rateable value, with a minimum fine of £5,000 and a maximum of £50,000 |
More than 3 months | 20% of the rateable value, with a minimum fine of £10,000 and a maximum of £150,000 |
The breach may also be made publicly available.
What does this mean for you at the moment?
At this stage, you should:
- Determine the current EPC position of your properties. You can check the EPC status of a property here.
- Contact us to undertake an EPC+ feasibility, where we can help you determine cost-effective ways to meet with the MEES.
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A PathTo Compliance
We undertake high-quality EPCs (avoiding default values wherever possible) in the first instance. This often improves the rating, particularly if the more complex properties are assessed using Dynamic Simulation Modelling (DSM) software and suitably qualified Non-Domestic Energy Assessors (NDEAs) and now Domestic Energy Assessors (DEAs).
We apply solid principles to identify a practical way forward, including:
- Good housekeeping – look at improved controls to existing services for greater efficiency.
- Engaging with surveyors to establish if there are cost-effective building fabric measures.
- Ensuring efficient building engineering services, e.g., high efficacy lighting and daylight saving.
- Seeking to remove the use of fossil fuels.
- Reviewing lease events in buildings for opportunities in phased improvement works.
- Undertaking a cost/impact appraisal on all measures to identify which are cost-effective to meet the MEES.
As well as having high-quality assessors, we have a large team of highly experienced engineers who can apply sound engineering principles to all existing buildings.
As efficiencies of building engineering systems improve, so do the chances of meeting with the MEES without necessarily diving straight into renewable energy sources.
We have achieved B and A’s on 20-year-old properties by applying good engineering practices. Using heat pump technology to heat and cool buildings, high-efficiency ventilation systems with heat recovery, demand control ventilation, and lighting with efficacies in excess of 130 Lm/CW all help with this process.
Many of our successes have been achieved without applying renewable technologies. We achieved a band A on a 200,000 sq. ft distribution centre without the need for renewables. We have also achieved a band B in a 90,000 sq. ft 15-year-old office block whilst retaining a VAV all-air system.
However, when we are required to consider renewables, we often achieve a band A, which is significant to potential occupiers for their own environmental, social and governance requirements.
There are many ways you can improve the EPC rating of your property. We look at those which are cost-effective and genuinely sustainable for your business.
Please feel free to message us here if you need to discuss your requirements on any property.
Real-WorldExperience
As expert, accredited and competent engineers in mechanical, electrical, and public health building engineering services, we provide a full range of services, including:
- Mechanical Electrical
- Low Carbon Consultancy
- Expert Witness
- MEP
- Mechanical Electrical Design
- Public Health
- HVAC
- Zero Carbon Design
- Cat A Refurbishment
- Cat B Fit-Out
- Dispute Resolution
- Principal Designer