Commercial Energy Performance Certificates (EPC)
A Commercial Energy Performance Certificate (Commercial EPC) is legally required for every commercial building when it is constructed, when it is sold, or when a lease is granted or renewed on the property. This energy performance certificate gives information about the energy efficiency and rateable value of the building to its owners, tenants or prospective buyers.
What Information Does a Commercial EPC Contain?
The EPC has two distinct sections – a graphic rating showing how energy efficient the building is (example Commercial EPC Certificate shown here), and a recommendations report.
To produce the Commercial EPC, an accredited energy assessor must gather information on the following, from a site visit.
- The size and location of the building.
- Activities of each zone i.e office / toilet etc.
- Heating and Cooling systems present in the building.
- Hot water supplies to the building.
- Building management systems and controls.
- Utility Feeds.
- Lighting present in the building.
- Presence of renewable energy sources.
- The buildings classification of use.
The more complete the information gathered is, such as full accessibility and site map information, the more accurate the rating and recommendations report will be.
The recommendation report will give guidelines on how to improve the energy efficiency, and therefore its rating through the implementation of such things as LED lighting.
Minimum Energy Efficiency Standards (MEES)– EPC Commercial Property?
For privately rented non-domestic properties, from 1st. April 2018, Minimum Energy Efficiency Standards (MEES) regulations will affect all commercial landlords and property owners.
The regulations state that any property having a new lease granted, or an existing lease renewed, must achieve an EPC rating of E or above. From April 2023, the regulations will apply to ALL leases, whether up for renewal or current.
For more information on requirements, exemptions and penalties, please see approved flyer below. Or contact us for guidance regarding an EPC for Commercial Property.
MEES Regulations and the Impact on SIPP Investors!
Financial Institutions are now demanding that non-domestic properties invested in a self-invested personal pension (SIPP) or small self-administered schemes (SSAS), meet the MEES regulations, with fines of up to £150,000 for non-compliance.
For more information on requirements, exemptions etc for Energy Performance certificates for Non-Domestic properties we have supplied the DCLG guideline document supplied.
Commercial Energy Performance Regions?
LJ Energy Surveys are qualified and expert energy assessors helping building owners satisfy the requirements of the EPC regulations. Although based in South Shields, Tyne & Wear, cover the whole of the North East on a daily basis, we can however offer site visits and quotations on Commercial EPC’s throughout the UK.
For more information on our Commercial EPC certificate services please contact us or click here to request an inspection.
COMMERCIAL EPCS – FAQ’S
WHEN DID THE COMMERCIAL EPC BECOME A REQUIREMENT?
The requirement for all non-dwellings to have an EPC on construction, sale or rent was introduced from 6 April 2008.
WHEN IS A COMMERCIAL EPC REQUIRED?
An EPC is required whenever a building is constructed , marketed for sale, or has a new lease agreed, or existing lease renewed on it.
WHO CAN PRODUCE A COMMERCIAL EPC?
EPCs for non-dwellings must be produced by an accredited non-domestic energy assessor, who is a member of a government approved accreditation scheme.
WHAT INFORMATION DOES A COMMERCIAL EPC GIVE ME?
The EPC shows the energy efficiency rating (relating to running costs) of a non dwelling. The rating is shown on an A–G rating scale , A being the best rating, or most efficient, and G the worst or least efficient.
DOES THE COMMERCIAL EPC PROVIDE ANY OTHER INFORMATION?
As well as the efficiency rating of the building, a recommendation report is produced. This report shows measures that will help to improve the efficiency rating of the building, but there is no legal requirement to implement these recommendations.
WHO IS RESPONSIBLE FOR PROVIDING THE COMMERCIAL EPC?
The seller or landlord of the property is responsible for providing the commercial EPC, and it must be made available to all prospective buyers and tenants.
CAN I COMPLETE A SALE OR LEASE WITHOUT A COMMERCIAL EPC?
No, the agent and solicitor involved in the sale or lease must ensure the EPC is in place before completion, and fines can be imposed on the transaction if an EPC is not in place.
HOW LONG IS A COMMERCIAL EPC VALID FOR?
An EPC will last for 10 years on a building, and is valid for multiple sales or lease renewals, as long as significant changes have not been made to building.
CAN A BUILDING BE SOLD OR RENTED WITH ANY RATING?
The rating does not affect the sale of a building. A building can be sold with an commercial EPC rating A-G. However, a building cannot have a lease renewed or granted if it is below an E, i.e. F or G. This may have consequences for anyone wishing to buy the building to rent it out.
WHAT FACTORS AFFECT THE COST OF A COMMERCIAL EPC?
Although the square meterage of a building is a consideration, the number of floors, number of different areas, and complexity of its heating system are all factors that are taken into account when pricing an EPC.
DO ALL BUILDINGS REQUIRE A COMMERCIAL EPC?
Certain buildings are exempt from EPC requirements. These include:
- Stand-alone buildings with a total useful floor area of less than 50m 2
- Temporary buildings with a planned time of use of two years or less.
- Certain buildings which are protected as part of a designated environment, or because of their special architectural and historical merit are exempt from the requirements to have an energy performance certificate. In so far as the compliance with minimum energy performance requirements would greatly alter their character or appearance.
- Any buildings which are used as places of worship and for religious activities
- Buildings due for demolition – A demolition order must be in place.
WHAT IS THE BEST MEASURE TO IMPROVE THE EFFICIENCY RATING OF A BUILDING?
The most cost effective, and least destructive measure that can be implemented to improve the efficiency rating of a building is by far the installation of of LED lighting. Aswell as improving the efficiency rating of the building, it shows dramatic cost savings on the running costs.
ARE ALL EPC’S THE SAME?
Although all buildings require the same method of inspection, measurement, photographic evidence, and identification of construction and conditioning, there are different levels of commercial EPC’s – Level 3, 4 or 5.
The level will be determined by the existence of different heating and ventilation methods, and also things such as Atria, It is important to ensure your chosen assessor is qualified in the respective level you require for the building.