Energy Performance Certificates or 'EPCs' are required for rented commercial buildings. This includes properties where the leases are mid-term.
If you're a tenant, your landlord may have to meet these standards to continue to let your space.
An Energy Performance Certificate (EPC) rates how energy efficient your premises are with grades from A+ (very efficient) to G (inefficient).
The grade requirements – upcoming legislation
Most non-domestic buildings need to make measurable improvements to energy performance standards to improve efficiency.
Minimum energy efficiency standards of EPC 'E' from 2023
Since April 2023, all privately rented non-domestic properties in England and Wales must legally have an EPC rating of 'E', where cost effective.
Minimum energy efficiency standards of EPC 'B' by 2030
In 2019, the government consulted on requiring all non-domestic rented premises to be a minimum of an EPC rating of 'B' by 2030. This received significant support and the government is now consulting on the framework to implement this new requirement and improve the compliance and enforcement process.
This means that all non-domestic rented buildings below EPC 'B' must undertake cost-effective improvements by 2030.
Under the proposals, landlords would be required to submit their current EPC to an online compliance and exemptions database. It's important to note that under current considerations, landlords will be required to present a valid EPC two years before the enforcement date for both EPC targets. So, an EPC 'B' would need to be presented by 1st April 2028 and if not compliant by April 2028, the landlord will have to get another EPC by 1st April 2027 to demonstrate it has reached an EPC 'B' or has achieved the highest EPC and register a valid exemption.
Interim milestone of EPC 'C' by 2027
By 2027, all non-domestic rented buildings must have improved the building to an EPC 'C' or above, or register a valid exemption.
Under the current consideration a landlord would have to present an EPC 'C' or above by 1st April 2025. If the building is not compliant by then, the landlord will have to get another EPC by 1st April 2027 to demonstrate it has reached an EPC 'C' or has achieved the highest EPC and register a valid exemption.
Fines
You can be fined between £500 and £5,000 if you don't make an EPC available to a prospective buyer or tenant.
Checking your building's EPC
You can check the EPC of your building on the government website.
Why you should look to improve your building's EPC rating
Whilst the upcoming legislation is certainly one strong reason to look to improve your building, there are other reasons too. By completing works to improve your building's EPC you should also :
- reduce operating costs
- have fewer, shorter rental voids
- maintain or increase property value
- lower carbon emissions and help meet the UK's net zero emission targets
More information about EPCs for commercial premises
As a commercial landlord if you are renting or leasing a commercial property you must have an EPC. An EPC certificate must be obtained from an approved commercial energy assessor.
You can find out more information on the government website on
- When you need an EPC
- When you need to display an EPC
- How much it costs
- How to get a certificate
- Exemptions
- How to appeal a penalty charge
You can find out more about the EPC proposals and implementation framework.
