Commercial Energy Commercial Energy, Commercial Energy

(Postdoctoral Scholar)

Have you ever been torn between buying from a Commercial Energy Performance Assessors organisation that exhibits the same principles as yourself and one that does not? Do you ever reflect the social factors that shape your decision making on this topic?

The intention is that an EPC is not required for conversions, alterations and extensions to buildings other than alterations and extensions to stand-alone buildings having an area less than 50 square metres that would increase the area to 50 square metres or more, or alterations to buildings involving the fit-out of the shell which the subject of a continuing requirement. If you are buying a new home, an EPC certificate could help you compare properties you may be looking at. If you are a seller, improving your rating could help boost the value of your property. Research from moneysupermarket.com shows the average home could be worth as much as 14 per cent more if it was upgraded to an A rating. Remember, if you are selling, renting or commissioning a new building you must have an EPC undertaken because if you don’t the penalties could be severe. Enforcement agencies have the power to investigate and request a copy of the EPC and the accompanying recommendations report. The responsible person has 7 days to produce this documentation upon request. A Commercial Premises utilises significant amounts of energy during the working day due to powering heating systems, mechanical ventilation and cooling. A Commercial Property with the best ratings is more attractive to potential tenants and buyers as they have lower running costs and are more environmentally friendly. If an EPC for the property currently shows a rating of F or G, then the landlord must make improvements to bring the property up to an E rating before the relevant date. If the tenant has a right to renew under the Landlord and Tenants Act 1954, the Regulations do not interfere with these rights, therefore neither the tenant nor the landlord can use the non-compliance as a justification for refusing to renew, or terminating the lease early. Efficiency improvements in buildings often have low or no marginal cost, or provide a return on investment in the form of energy cost savings in as quickly as six months to a year. This is a significant difference from emissions-saving investments in other sectors such as agriculture or transport, which are relatively expensive or result in lower emissions reductions.



The actual energy efficiency rating is a measure of a dwelling's overall efficiency. The higher the rating, the more energy efficient the dwelling is, the lower the associated carbon emissions are and the lower fuel bills are likely to be. While there are currently no laws on the rating your home must have before you sell it, this might been changing. For example, in April 2018, it was announced that, legally, all rented properties must have an energy rating of at least E. Unless the landlord takes action to improve the energy efficiency rating within the space of three months, they may face a fine of up to 20% of the property’s rateable value. For rental properties, the energy rating can help rent out your property. They indicate to a prospective buyer or tenant how energy efficient your home is. It should also provide information that may help to reduce the running cost of the property. A good EPC score would be between A – C. The most efficient homes in band A normally have the lowest fuel bills. Properties that show a lower impact through carbon dioxide emissions will be rated better homes through the EPC. Maximising potential for non domestic epc register isn't the same as meeting client requirements and expectations.

Plan For The Long Term

here are proposals for the minimum commercial EPC standards to be raised to Class D by 2025 and to Class C by 2030. The issue of EPCs is therefore one which will become of greater concern to Landlords, particularly if the minimum standards are to be raised as proposed. The impact of MEES legislation will be of ever-increasing concern to both landlords and tenants (and indeed their funders) as companies seek to improve their ESG credentials. Steps are recommended sooner rather than later to address not only the application of MEES to existing leases from 1 April 2023, but also the proposed 2030 minimum 'B' energy efficiency rating (and possible interim uplifted energy rating requirements). It’s not possible to fail an EPC, but it is possible for a property to be given a rating of “G”, which is the lowest rating and indicates that the property is extremely energy-inefficient. Any property rating “G” would need to take major steps to improve the rating to at least “E”, which is the minimum rating specified under the Minimum Energy Efficiency Standards The introduction of the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 (SI 2015/962) (MEES Regulations) created a requirement that in certain circumstances properties in England and Wales can only be let if a minimum energy efficiency standard has been met. From 2018 it will be illegal to let a property which has an EPC rating below E, It is recognised that there are some properties that will not reach an E rating and the Energy Assessor will note this on the EPC and a note of the highest possible rating will also appear. You may be asking yourself how does a mees fit into all of this?

EPCs are produced using standard methods and assumptions about energy use to enable the energy efficiency of buildings of the same type to be compared. They are valid for ten years but must be renewed if modifications to the property are made. Landlords should be mindful of what fit out their tenants are doing, and pro-actively re-assess their EPCs when the fit out will give the most favourable EPC rating. An EPC lasts for 10 years, or until superseded by a new one or the unit changes size. Greenwashing can be found across the construction industry, with companies using vague claims and unclear language such as ‘eco’, ‘sustainable’ and ‘natural products’ without actually explaining what it means. If your consultant is able to sniff out a greenwasher from a crowd, this will be great for your project and your outcomes. In April 2018, Minimum Energy Efficiency Standards came into force in England and Wales and has made it a legal requirement for all privately owned properties to have an EPC rating of at least an 'E' before they are sold or let. If an agent is marketing the property, they must include a copy of the EPC reports document in all commercial advertisements such as a brochure and website, etc. EPCs can be split into two categories – domestic and commercial – and it’s a legal requirement to have an EPC of a certain rating if you are renting out a property; but more and more people are choosing to get an EPC on their own home. Conducting viability appraisals with respect to mees regulations is useful from the outset of any project.

Cutting Energy Costs

EPC energy data is entered into approved RdSAP software to create the EPC. This is lodged on the Domestic Register by an accredited assessor and a hard copy produced. Landlords and tenants can access the EPC via the Domestic Register if they have the property’s Report Reference Number (RRN). Input data is recorded as well. The legal responsibility to have an EPC lies with the organisation that has placed the building on the market, for example the landlord, managing agent or tenant intending to sublet. The marketing agent also has a legal responsibility to have EPCs in place for the buildings they are advertising. It’s evident that a range of options are available when it comes to improving the energy efficiency of your home. From the hassle-free and cheaper options like switching to LEDs, to the more costly but effective methods such as replacing an old boiler, there are routes to energy efficiency everywhere you turn. Whichever you choose, you can always find a way to slash your energy bills and create a cleaner, more energy efficient house. Landlords should be aware that they do not have an automatic right to enter the premises using the justification of carrying out EPC improvement works. Whether a landlord has these rights if access will depend upon the lease drafting and if there is no such right then, tenant consent will be required. If consent cannot be obtained, the landlord may then be able to obtain a third-party consent exemption. As a tenant looking to lease a commercial property, you should be very careful when checking the history of the building. Making sure the commercial property has an EPC rating of E or above is essential to prevent any disruption, eviction or even the potential of having to pay a contribution cost towards energy improvement. You should also be aware of the landlord’s rights (if any) to enter the property to carry out energy improvement works. A well-thought-out strategy appertaining to commercial epc can offer leaps and bounds in improvements.

If a building is modified to have more or fewer parts than it originally had and the modification includes the provision or extension of fixed services for heating, air conditioning or mechanical ventilation (i.e. those services that condition the indoor climate for the benefits of the occupants) then an EPC will be required. EPCs have been mainly used to demonstrate compliance for obtaining building permits, documentation of energy efficiency improvements for renovations and for documentation purposes during transaction activities, which legally require that a valid EPC exists for the building. Energy Performance Certificates (EPCs) are required for almost all commercial and industrial use buildings, effectively those defined as non-dwellings, when they are constructed, sold, or rented out under Article 7 of the European Energy Performance of Buildings Directive (2002/91/EC), which all European Union member states are required to implement. To tackle this requirement in Britain compliance is covered within the Building Act 2000 Part L as amended 2006 and the Energy Performance of Buildings Directive Statutory Instrument 991:2007 within England and Wales and synonymous legislation in Scotland and Ireland. Once issued, an Energy Performance Certificate is valid for 10 years. In that time, you can use the EPC multiple times for the same property if you wish to rent out to different tenants. After 10 years, the EPC has expired and you will need to follow the process again, to get a newly valid Energy Performance Certificate. A recent report by the UK Energy Research Centre claimed that “cost-effective investments to 2035 could save around one quarter of the energy currently used, an average saving of £270 per household per year at current energy prices.” A team of Energy Assessors and Chartered Surveyors are uniquely placed to give advice on epc commercial property and provide a complete energy consultancy service.

EPC Breakdown

Your EPC will have two charts which display the Energy Efficiency Rating (running costs) and the Environmental Impact Rating (CO2 emissions). You will be able to see your current rating alongside the potential rating you could achieve by making the recommended improvements. Your rating will be scored between 1-100 points which are divided into categories and reflect the energy efficiency from high to low. Even those who do not intend to sell properties can potentially benefit from knowing what the EPC rating of their home is. EPCs can indicate the energy efficiency improvements that could be made on the property, how much they will cost, and how much money could be saved from energy bills by making the improvements. Holding an EPC is a legal requirement under the Energy Performance of Buildings Directive (EPBD). Without it your building cannot be signed off, sold or let. You can also be fined up to £5,000. For businesses there are 3 levels of non-domestic Energy Performance Certificate which are Level 3, Level 4 and Level 5 EPCs. The difference between them is to do with the complexity of the building and the fixed services with Level 5 being the most complex and Level 3 the least complex. One can uncover extra facts on the topic of Commercial Energy Performance Assessors at this UK Government Publications article.

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