A commercial Energy Performance Certificate (EPC) rates non-domestic buildings on their energy efficiency. EPC regulations mean ratings are given on a scale of A to G, with A being the most efficient and G being the least energy efficient.
If you’re looking to buy or rent a property, an EPC will give you an idea of how much you’ll need to spend on energy – the higher the rating, the more energy-efficient it is and the less you’ll spend on heating – and although EPCs are usually associated with domestic properties, all commercial properties should also have one.
If you’re unsure how EPC assessments work, take a look at our helpful guide below that answers everything you need to know about the assessment, how to prepare and what to expect.
Do I need to get a commercial EPC?
It is a legal requirement for commercial buildings to have an EPC if:
- you rent out or sell the premises
- a building under construction is finished
- there are changes to the number of parts used for separate occupation and these changes involve providing or extending fixed heating, air conditioning or mechanical ventilation systems
Your property’s EPC needs to be available to potential buyers as soon as you start to market your property for sale or rent, to allow a comparison of the energy efficiency of different properties easily. Plus, if the building is public, you are required to display the EPC in a place that it can be easily seen.
There are some scenarios that will mean that buildings are exempt from the commercial EPC requirements and do not need one. If your building is:
- temporary (in use for less than two years)
- a standalone building with a total floor space of less than 50 m²
- listed/conservation area/officially protected and the minimum energy performance requirements would unacceptably alter it
- used as a place of worship or for other religious activities
- an industrial site, workshop or non-residential agricultural building that doesn’t use much energy
- due to be demolished by the seller or landlord and they have all the relevant planning and conservation consents
If these are the case then you will not need to produce an EPC.
How long is an EPC valid for?
A commercial EPC is valid for 10 years. If your EPC expires, you’re only legally required to apply for a new one if you’re looking to renew tenancy agreements, create new tenancies or sell the property – a new EPC is not required simply because an existing EPC has expired.
If you are a commercial landlord, your property needs to meet certain EPC requirements and energy efficiency standards, regardless of whether or not your building needs a new EPC.
What is the minimum EPC for a commercial property?
Legal minimum energy efficiency standards (MEES) for commercial buildings were introduced in April 2018, as part of the Energy Act. Although F and G are still the lowest ratings available, if you’re looking to lease or sell a commercial property, it must have a rating no lower than E.
As of April 1, 2023, you must not continue to let any commercial properties that don’t meet an E on their EPC.
What happens if you don’t have an EPC?
If you don’t comply with the current commercial EPC guidelines, you could find yourself on the end of a hefty fine. Penalties for non-compliance are based upon the rateable value of a property:
- If a non-compliant property has been let for three months or less, the penalty is based upon 10% of its rateable value, from a minimum fine of £5,000 up to a maximum of £50,000.
- If a non-compliant property has been let for more than three months, the penalty is based upon 20% of its rateable value, from a minimum fine of £10,000 up to a maximum of £150,000.
If you try to get out of having an EPC by providing false or misleading information to the PRS exemption register, or you don’t follow a subsequent compliance notice, you can be fined up to £5,000.
At BESS ENERGY LTD we are a fully accredited commercial energy assessor based in London and can undertake all testing and provide valid certificates.
Click here to view our contact details and book your EPC survey.