EPC Rating Services – Commercial Property

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Sweco’s Building Services and Performance experts can help you ensure commercial EPC compliance with end-to-end Non-Domestic Energy Assessor (NDEA) support – and provide all aspects of subsequent decarbonisation design as required.

Sustainable buildings are vital for driving the green transition, making it essential to improve the Energy Performance Certificate (EPC) ratings of properties in order to achieve net zero carbon by 2050. Consequently, there is an increased focus on reducing carbon emissions and boosting energy efficiency, with new regulations regarding EPC requirements for commercial tenancies set to be implemented soon.

Commercial EPCs (Energy Rating Certificates) are required for all non-domestic properties – the latest UK government white paper sets a target for all commercial premises in England and Wales to achieve a ‘C’ rating by 2028 and a ‘B’ rating by 2030. As a trusted Non-Domestic Energy Assessor, Sweco is perfectly placed to guide you through the commercial EPC journey, and help you implement strategies to optimise performance across single premises or a multi-site estate.

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What is a Commercial Energy Performance Certificate (EPC)?

A commercial EPC is a standardised document that provides information about the current energy efficiency of a non-domestic (ND) building, rating it on a scale from A(A+) as the most efficient with G being the least efficient.

The certification process also provides actionable recommendations for improving energy performance, reducing operational costs and reducing carbon footprint – which can all make a property more attractive to potential tenants or buyers and as a result may add significant value to your asset(s) due to higher demand, and in turn contribute to higher rental or sale revenue.

Commercial EPCs are required by law for all non-domestic buildings in the UK, regardless of size or purpose, and the Minimum Energy Efficiency Standards (MEES) directive dictates that these premises must reach at least an ‘E’ rating, rising to a ‘C’ by 2028 and a ‘B’ by 2030.

Without an EPC a building cannot be sold or rented, while failure to hold an EPC and comply with the government’s minimum standards can also result in penalties, restrictions of use or large fines of up to £150,000.

Commercial EPCs last for 10 years.

Types of commercial EPC:

There are three levels of Energy Performance Certificates (EPC) for non-domestic buildings, which are split by their complexity:

  1. Level 3: Simple commercial buildings with common characteristics and basic air-conditioning systems (e.g., small shops, restaurants).
  2. Level 4: More complex buildings with advanced HVAC systems or new builds (e.g., large office buildings, large shops).
  3. Level 5: Buildings with specific features like atriums or automatic blind control, requiring detailed modelling software for energy performance assessment.

Will you have a commercial EPC B-rating by 2030?

The Energy Performance Certificate (EPC) requirements for non-domestic rented and sellable buildings are evolving as follows:

  1. Current Requirements: As of April 2023, all non-domestic rented and sellable properties must have a minimum EPC rating of ‘E’. This requirement has been in place since April 2018 for new tenancies.
  2. Future Requirements:
    • By April 2027, all non-domestic rented and sellable buildings must achieve an EPC rating of at least ‘C’.
    • By April 2030, the requirement will increase to a minimum EPC rating of ‘B’.
  3. Challenges:
    • The current regulatory framework does not adequately capture actual energy reductions without hardware changes, which may lead to a risk of significant degradation of EPC ratings.
    • There are complexities involved in upgrading building services, such as replacing existing systems with more efficient alternatives, which may require significant investment and planning.
    • The transition to higher EPC ratings may necessitate a comprehensive understanding of the building’s energy performance and compliance with evolving regulations.
  4. Need for NDEA:
    • An accredited energy assessor can provide expert guidance on achieving compliance with the new EPC requirements, ensuring that the building meets the necessary standards.
    • They can conduct detailed energy audits, identify potential improvements, and help navigate the complexities of the regulatory landscape, ultimately assisting the client in making informed decisions to enhance energy efficiency and reduce costs.

The evolution of EPC requirements from ‘E’ to ‘B’ by 2030 presents both opportunities and challenges, necessitating the expertise of accredited energy assessors to ensure compliance and optimise energy performance.

More on the new Minimum Energy Efficiency Standards (MEES)

In 2015, in the Private Rented Sector (PRS) Regulations, the Government introduced minimum energy efficiency standards (MEES) to improve the worst-performing buildings in both the domestic and non-domestic stock. In October 2019, the Government consulted on proposals that would tighten the non-domestic MEES to set a long-term regulatory target of EPC B by 2030, or the highest EPC band a cost-effective package of measures could reach.

 

The Energy Efficiency (Private Rented Property) (England and Wales) Regulations (the ‘PRS Regulations’) set a minimum energy efficiency standard (MEES) of EPC E for privately rented properties. The requirement that a property must be EPC E has applied since 1 April 2018 to properties let on new tenancies (including renewals), and from 1 April 2023 will apply to all privately rented properties, even where there has been no change in tenancy.

On 1 April 2023, the current PRS Regulations will take full effect. Where costeffective, all non-domestic rented properties will need to achieve an EPC E. The local authorities will be expected to ensure that non-domestic properties are compliant or have a valid exemption. After 2023, the Government proposes that there should only be four junctures where landlords are expected to comply and where enforcement activity is required:

 

First Compliance Window: EPC C (2025-2027)

 

•  1 April 2025: Landlords of all non-domestic rented buildings in the scope of MEES must present a valid EPC.
•  2028: All non-domestic rented buildings must have improved the building to an EPC ≥ C, or register a valid exemption. Second Compliance Window: EPC B (2028 – 2030)
•  1 April 2028: Landlords of all non-domestic rented buildings in the scope of MEES must present a valid EPC.
• 1 April 2030: All non-domestic rented buildings must have improved the building to an EPC ≥ B, or register a valid exemption.

 

For the purposes of meeting MEES under the PRS Regulations, all non-domestic rented buildings will need to achieve an EPC C by 2027 and EPC B by 2030, regardless of when they are let or have their lease renewed. Government has proposed to enforce MEES only once a unit is fully operational and has been occupied for at least six months. This should resolve the issues created by enforcement being at the point of letting in buildings rented in a ‘shell and core’ state. Tenant fitout choices are not currently regulated but can significantly impact the final EPC rating. The Government is therefore considering amending the PRS Regulations to give tenants of non-domestic properties some duties regarding compliance with MEES rules, and to add consequent duties of cooperation for both landlord and tenant that they must work together to reach compliance. Legal mechanisms like an ‘Agreement for Lease’ have worked well in sharing and allocating responsibilities between landlord and tenants to comply with MEES. And NABERS UK requirements for future Grade A office buildings in London will be a standard fixture within the lease agreement.

 

Based on the widespread support to the approach the Government set out in the consultation, the Government confirmed in the Energy White Paper that the future trajectory for the non-domestic MEES will be EPC B by 2030. The future EPC B requirement is an ambitious target designed to drive the UK towards net zero, by encouraging investment in the fabric and services of rented non-domestic buildings throughout the stock.

 

The Government is clear that landlords should invest in improving their building in a most cost-effective way and minimises disruption to themselves and their tenants. In some cases, a landlord’s best approach might be to invest in the building to bring it up to an EPC C and then an EPC B. However, it may be better to undertake one significant retrofit in the 2020s, which would bring the property up to EPC B, or if EPC B is not possible, the highest cost-effective EPC band the building can achieve. If it makes sense to undertake a one-step improvement, the Government strongly encourages landlords to do so.

 

The Government does not expect that all properties will be able to meet the EPC B requirement, but every property must undertake improvements to achieve the highest EPC rating that a cost-effective package of measures can deliver. The payback test will determine this. It is clear from stakeholder feedback that the current requirement to obtain three quotes is creating undue burdens on both landlords and market suppliers.

How can Sweco help?

Full EPC Assessment Surveys

As your NDEA (Non-Domestic Energy Assessor), we will visit the commercial property to collect essential data including room dimensions, lighting, insulation levels, and heating systems. We will also take measurements and photographs.

Our commercial EPCs are calculated using an approved software program in accordance with the National Calculation Methodology, which assesses the energy efficiency of a building’s fabric, heating, and ventilation systems. Sweco employs the Integrated Environmental Systems (IES) VE Compliance software, a Dynamic Simulation Model (DSM) approved by the Department for Communities and Local Government, to ensure accurate and reliable EPC assessments.

Sweco is offering EPC optimisation studies for commercial projects in their early design stages, as well as for retrofits. Our EPC optimisation study is based on comprehensive energy audits, including the analysis of existing or as planned building services and operational practices, allowing us to identify opportunities for energy efficiency improvements. By focusing on actual energy performance and aligning with frameworks such as NABERS UK, Sweco is committed to delivering tailored EPC solutions that not only meet regulatory requirements but also enhance the overall sustainability of buildings.

Our experts will produce a final Commercial EPC that includes all required legal details, your asset ratings and relevant technical information, along with a separate document which outlines recommendations for improving the building’s energy performance.

Energy Feasibility Studies

Based on the EPC, we can offer detailed advice and feasibility proposals on the practical steps needed to achieve target MEES and government standards. Our team of MEP engineers, sustainability experts and ESG specialists will guide you through each requirement, helping you meet your goals and reduce your building’s energy demand.

Full Decarbonisation Strategy & Design

Partnering with Sweco’s NDEAs for your EPC service not only ensures compliance with current regulations but also paves the way for a strategic partnership with other esteemed green building certifications and sustainability assessments such as BREEAM, LEED, WELL, and ESG.

With Sweco’s expertise in MEP design, energy efficiency and sustainability clients can seamlessly integrate their EPC initiatives with broader sustainability goals, enhancing the overall performance and marketability of their buildings.

By leveraging our comprehensive approach to Building Services, organisations can achieve higher energy ratings while simultaneously working towards certifications that promote health, well-being, and environmental stewardship. This collaborative effort not only demonstrates a commitment to sustainability but also positions your building as a leader in the green building movement, attracting environmentally conscious tenants and investors alike.

Why do I need to employ a qualified commercial EPC Assessor?

Valid EPCs can only be produced by an accredited energy assessor using a government-approved software.

Partnering with a specialist commercial EPC assessor – namely an accredited, experienced and qualified Non-Domestic Energy Assessor (NDEA) – is crucial for landlords and developers who need to both validate and improve the energy efficiency of office, retail, manufacturing, healthcare or other commercial building types.

Expert assessors are responsible for conducting energy performance assessments and producing Energy Performance Certificates (EPCs) for non-domestic properties, and the most competent will provide thorough information on the building’s energy consumption and carbon emissions, helping you make informed decisions on how to reduce energy usage and save on costs.

A skilled commercial EPC assessor must have a thorough understanding of building regulations and energy efficiency measures in order to accurately assess and rate a building’s energy performance, and go on to provide the full spectrum of green buildings design and MEP solutions needed to implement sustainable and environmentally-friendly practices in the commercial sector.

How can I improve my EPC rating on my commercial property?

Here are several high-level ways to improve the Energy Performance Certificate (EPC) rating of your commercial property:

Insulation: Enhance the insulation of your building’s walls and roof to maximise energy retention.

Lighting: Opt for energy-efficient lighting solutions that reduce consumption while providing optimal illumination.

Heating: Upgrade your heating systems to more efficient models, ensuring improved energy utilisation and comfort.

Windows: Replace single-glazed windows with high-performance double glazing to enhance thermal efficiency.

Boilers: Natural gas boilers are not efficient systems, replacing them with all electric heat pump systems would increase the system efficiency by more than 4 times.

Implementing these measures can lead to a substantial improvement in your building’s energy performance, contributing to a more sustainable future. At Sweco we have a dedicated, multi-disciplinary team – as well as global experts across Europe who work to stringent EU Taxonomy and other criteria – who can plan, design and oversee energy performance optimisation measures across your building asset(s).