A Guide To Energy Performance Certificates (EPCs) For Commercial Properties

Energy Performance Certificate (EPC) rules for commercial properties continue to evolve, especially as the UK moves toward stricter minimum energy efficiency standards.

This guide summarises the current legal requirements, upcoming changes, and your responsibilities as a landlord or property owner.

What Is an EPC?

An EPC provides information about a building’s energy efficiency, rated from A (most efficient) to G (least efficient). It helps buyers and tenants understand likely energy costs and environmental impact.

When Is an EPC Required?

You must obtain an EPC:

• When selling or renting out a property (Not required for lease renewals.)
• When a newly built property is completed
• When a building is altered in a way that changes:
  • The number of units used for separate occupation
  • Heating systems
  • Air‑conditioning
  • Mechanical ventilation

An EPC must be commissioned before marketing the property. If the building has not changed, an EPC is valid for 10 years.

Requirement to Display EPCs

If a commercial building:

• Is frequently visited by the public, and
• Has a floor area over 500 m²,

then the EPC must be displayed prominently and be clearly visible to visitors.

Penalty for failing to display: £500.

EPC Exemptions

An EPC is not required if the building is:

• Listed or officially protected and minimum energy requirements would unacceptably alter it
• A temporary building used for less than 2 years
• A place of worship or used for religious activities
• An industrial site, workshop, or non‑residential agricultural building with low energy demand
• A detached building under 50 m²

Penalties for Non‑Compliance

Failing to make an EPC available to a prospective buyer or tenant can result in:

• A fine equal to 12.5% of the rateable value
• Minimum penalty: £500
• Maximum penalty: £5,000
• Default penalty: £750 (where the formula cannot be applied)

Under the Minimum Energy Efficiency Standards (MEES):

• Landlords cannot grant a new tenancy (or renew an existing one) if the EPC rating is F or G, unless an exemption applies.

Upcoming Changes (April 2023 Onwards)

From April 2023, the restriction applies to all existing commercial leases, regardless of when they were granted.

This means continuing to let a property with an EPC rating of F or G is unlawful unless registered as exempt.

Proposed Future Requirements (Likely Confirmed in 2025)

The government has proposed stricter EPC targets:

• 1 April 2027: Minimum EPC rating C
• 1 April 2030: Minimum EPC rating B

Only around 12% of commercial properties currently meet EPC band B, meaning significant upgrades will be required across the UK commercial property sector.

Frequently Asked Questions (FAQs)