Commercial EPCs – The New Regulations

The new regulations are regarding the commercial Energy Performance Certificates (EPCs); and set out a new minimum energy efficiency standard (MEES) for commercial buildings. From April 2018, it will be unlawful to sell or let any commercial property with an EPC rating below a grade ‘E’.

What do these new commercial EPCs mean for me?

Any commercial building that is rated as an ‘F’ or ‘G’ will not be able to be let or sold (subject to a few exemptions).

Implications for Landlords 

These regulations will also apply to most private sector residential properties that are rented out. Landlords could already be forced to improve low energy rated properties; with regulations that came into force in 2016 giving tenants the right to request improvements to their home.

EPCs - photo by nmcandre - Getty / Canva

Can I continue to let an ‘F’ or ‘G’ rated commercial property? 

From 1st April 2018, landlords will be able to continue to let out properties (that don’t meet the new MEES) for the remainder of the existing lease. Renewing a lease, or signing up tenants to a new lease, may not be possible after this date; until the necessary improvements have been made to achieve a grade ‘E’ or above on the Commercial EPCs.

Lease Renewal

In circumstances where landlords are legally bound to renew leases they could find themselves having to carry out improvements. In order to make their property more energy efficient before they are able to grant a new lease.

From 1st April 2023, the regulations will apply to all commercial properties (subject to limited exemptions); even those properties that already have existing leases.

Our Recommendation : Start Preparing Now

If you own commercial property that you let out to tenants or have commercial property that you wish to sell, now or in the future, it’s important to begin to plan what improvements you may need to make to bring your property up to a grade ‘E’ or above on the EPC.

Planning ahead allows you to better budget and consider the most cost effective options, that should make your building/s more energy efficient. LED lighting is one of the easiest ways that you can improve your building’s energy efficiency.

Take a look at how LED lighting could help you to meet the new EPC requirements.

Tomlinson Longstaff Ltd is an electrical contractor based in Country Durham, north east England. We offer a wide range of electrical services including design, testing, installation and maintenance.