Findings by the International Energy Agency (IEA) suggest that by reducing energy costs in the building sector, savings of about 1.509 million tonnes of oil equivalent (Mtoe) is achievable by 2025.
Additionally, by improving energy efficiency in buildings, carbon dioxide (CO2) emissions can be significantly reduced to approximately 12.6 gigatonnes (Gt) in the same year.
Energy Performance Certificates (EPCs) are key to achieving these targets. They offer property owners insight into attaining efficient energy levels, reducing their carbon footprint and lowering energy bills.
Read on to learn more about commercial EPCs and how to obtain them.
Commercial Energy Performance Certificates determine the energy efficiency of non-domestic properties through an A to G rating system (A being the most efficient and G being the least). They show a building’s energy efficiency rating based on estimated fuel costs and help determine its environmental impact rating based on carbon emission levels.
An EPC measures a building’s efficiency by calculating the amount of energy needed to provide users with optimal levels of comfort and functionality.
The degree of efficiency is calculated based on the following factors:
The certificate also contains a recommendation report for improving a building’s energy efficiency levels, including estimated costs of implementing the changes and the potential savings you could generate. Note that there is no statutory requirement for carrying out the recommendations.
An EPC displays a chart with colours ranging from a dark green A (0-25) to a red G (150 and above). The higher a building is on the scale, the more energy-efficient it is and the lower the CO2 levels it emits.
The energy rating is calculated based on the level of the commercial property:
Level 3 - Small buildings with cooling systems of less than 12kW and heating systems of more than 100kW
Level 4 - Purpose-built commercial properties with cooling systems of more than 12kW and heating systems of more than 100kW
Level 5 - Buildings that are complex in size or shape but with similar cooling and heating systems as level 4 properties
To obtain an EPC, an accredited commercial energy assessor needs to inspect your property. The type of assessor required depends on the complexity of the property and the sophistication of the heating and ventilation systems.
An EPC survey takes approximately one to two hours to complete. During the visit, the assessor considers several factors, including:
After completing the EPC assessment, the building’s energy performance rating is calculated. Expect your EPC certificate to be uploaded on the government’s register within 24–48 hours after the survey’s completion. A copy of the certificate will also be sent to your email.
You must commission an EPC if:
In December 2012, however, the Department for Communities and Local Government issued a guidance note, highlighting which transactions are not considered a ‘sale’ or ‘letting’:
Commercial premises that fall into any of the following categories are exempted from getting an EPC:
A commercial building may also be exempted if all of the following conditions are met:
To improve energy ratings, the UK government demands that a valid EPC should be presented to prospective buyers or tenants before they view the commercial space. This helps them make more informed decisions about their choice of property.
The following conditions must be met by the landlord or property owner before selling, letting, or assigning a lease:
Commercial EPCs are valid for 10 years. However, there is no need to obtain a replacement if your existing EPC is more than 10 years old. Likewise, it is not mandatory to commission a first EPC for properties that are not for sale, rent or renovation.
Property owners may pay between £100 to £200 plus VAT for a commercial EPC. The more complex a building, the higher the cost of the EPC.
For instance, commissioning an EPC for an open-plan space like a warehouse would likely be cheaper than an office building that has been divided into workstations, lounge areas and meeting rooms.
If your building meets all the three criteria below, then the EPC must be displayed in a noticeable area on your property:
As part of the UK government’s net-zero by 2050 pledge, under the 2018 Minimum Energy Efficiency Standards (MEES), commercial spaces are required to have a rating of ‘E’ or above.
Properties with an ‘F’ or ‘G’ rating cannot be leased or sold unless their energy efficiency ratings have improved.
The financial penalty for failing to comply with EPC standards is calculated based upon the rateable value of the building:
Attempting to get out of securing an EPC by providing false or misleading information to the PRS exemption register or failure to adhere to a subsequent compliance notice may result in a fine of up to £5,000.
Securing an EPC for your commercial building is the first step towards achieving optimal energy efficiency levels and lowering utility costs while contributing to a greener and more sustainable environment.
For seamless and hassle-free processing of EPCs, turn to Energy Performance Certificates. We are the UK’s trusted provider of property certificates, including commercial EICRs and commercial EPCs.
Meet energy requirements and avoid getting penalised by getting an EPC. For inquiries and booking, reach out to us today at 0203 397 8220 or complete our online form.
