As of April 2018, Minimum Energy Efficiency Standard (MEES) are now imposed on commercial properties throughout England and Wales that are to be sold or let.
Compliance of each building is measured through an EPC (Energy Performance Certificate) rating. They are graded 'A' to 'G', with 'A' being the most efficient and 'G' the least. The minimum level required is grade 'E'.
An EPC assesses the energy consumption of a building by evaluating several factors including the heating, ventilation, lighting, insulation, glazing and layout.
EPCs are currently required for new leases, sublettings, as well as lease renewals. From the 1st April 2023 the regulations will apply to all leases however old.
There are significant penalties for non - compliance and therefore Landlords and should carry out works to their properties to ensure that their EPC rating achieves a minimum of grade ‘E’.
Prepared alongside the EPC is a separate Recommendation Report which suggest ways in which the building can become more cost effective and reduce its carbon footprint.
There are some exemptions from requiring an EPC, for example - Places of Worship, temporary buildings, detached buildings less than 50m2, buildings under construction, as well as buildings that are to be redeveloped as long as several criteria have been met.
In essence, if you have a building (with walls and a roof) that uses energy to condition the indoor climate (ie heating or air conditioning) then an EPC will be required when it is sold or let.
The disposal of commercial property can sometimes be complex as there can be a mixture of retail, office and residential elements as well as areas let to different tenants. An EPC will be required for any space being disposed of and must reflect the energy performance of the accommodation on offer.
To arrange an EPC or if you have any queries that you would like to discuss then please contact us.