Obtaining a non-domestic EPC

Why is a non-domestic EPC important?

Obtaining a Non-Domestic EPC is not only a legal requirement but also provides several benefits for businesses, including:

Legal compliance: It’s mandatory under UK law for all non-domestic buildings to have a valid EPC before being rented or sold. Failure to comply can result in substantial fines.

Energy savings: By understanding your building’s energy performance, you can take steps to improve efficiency, leading to lower energy bills and a reduced carbon footprint.

Attract tenants or buyers: A higher EPC rating makes your property more attractive to potential tenants or buyers, especially as businesses become more environmentally conscious and seek energy-efficient spaces.

Support sustainability goals: Many companies are prioritising sustainability. A high EPC rating can be a key factor in meeting corporate social responsibility (CSR) targets and demonstrating environmental leadership.

Who needs a non-domestic EPC?

You will need a Non-Domestic EPC if:

• You are selling a commercial building.
• You are renting out a commercial property.
• You are a landlord or managing agent.
• You are building a new commercial property.
• You are making significant modifications to a property, such as adding an extension or installing heating systems.

It’s worth noting that not all non-domestic properties require an EPC. For example, listed buildings, temporary structures, or industrial sites may be exempt under specific conditions. However, if you are unsure whether your property needs an EPC, it’s always best to seek professional advice.

How is the non-domestic EPC rating calculated?

A qualified energy assessor will visit your property to carry out an inspection and assess various factors that influence energy efficiency. These include:

• Heating systems
• Insulation quality
• Air conditioning units
• Lighting efficiency
• Building fabric (windows, walls, etc.)

Once the inspection is complete, the assessor will produce a Non-Domestic EPC that includes the building’s energy rating and a list of recommendations for improving energy performance.

The cost of a non-domestic EPC

The cost of a Non-Domestic EPC can vary depending on the size, complexity, and location of your building. Smaller properties typically range from £100 to £500, while larger or more complex sites can exceed £1,000. It’s essential to use an accredited energy assessor to ensure that your certificate is valid and accurate.

Do I need a non-domestic EPC for my commercial premises?

If you’re selling or letting a commercial property in its entirety, you’ll need a non-domestic EPC, according to Article 7 of the Energy Performance of Buildings (Certificates and Inspections) Regulations. Assume, however, that the structure contains sections that have been built or altered to be used separately.

Individual EPCs are also suitable in this case (assuming the heating systems are also separate), but a communal EPC will be needed.

If only a portion of a commercial building with a universal heating system is being let or sold, an EPC may be prepared for the whole building or for the individual premises being disposed of, as is often the case.

What happens if I do not comply with the regulations?

When selling or renting a non-dwelling, the penalty for failing to include an EPC to any prospective buyer or occupant is set at 12.5% of the building’s rateable value, with a default penalty of £750 if the formula cannot be enforced. The range of fines under this formula is set at £500 for the minimum and £5,000 for the limit.

If a copy of the EPC is not sent to an enforcement officer within seven days then another penalty will be imposed. The is set £200. If a person feels it should not be released, he should request a revised notice of a penalty charge.

If they are not happy with the results of the assessment, they can file an appeal with the county court within 28 days of receiving the notice from the local authority confirming the penalty charge notice.

Any individual interested in the building or working in it is responsible for cooperating with any seller or prospective owner to the extent necessary to enable them to comply with any regulatory requirement of an EPC and to allow the access to any appointed energy assessor.

Who can produce a non-domestic EPC for a non-dwelling when the building is sold, constructed or rented out?

A non-dwelling energy assessment must be conducted by an energy assessor who is a current member of an accreditation scheme.

Self-employed energy assessors, employees of service organisations such as surveyors or energy providers, and employees of the landlord or owner are all options.

The energy assessors will look at the following aspects of a property to determine its energy efficiency: the materials used in its construction, the heating systems installed, the cooling and ventilation systems, and even the lighting systems. It isn’t a building survey because it doesn’t comment on the condition.

Assume you implement these suggestions with legislation and government policy aimed at promoting greener energy. In that case, the value of your property will almost certainly rise, whether in terms of rent or sale price. It might be worthwhile to renew the EPC to illustrate this, based on the changes made.

Energy assessors must work independently to ensure that the EPC is entered into the national non-domestic EPC database. Accreditation programmes must have sufficient provisions to ensure that the energy assessment is conducted independently.

If there is a conflict of interest, energy assessors must report it. A situation where the energy assessor has employment ties to the organisation or is connected to the individual who commissioned the EPC, for example, is a conflict of interest.

If energy assessors believe they have been asked to adopt policies that are in conflict with this, they must recognise conflicts of interest and raise issues with their accreditation scheme. As long as they are working under the supervision of a certified energy assessor, a group of people will work on collecting information for an energy assessment.

How long is a non-domestic EPC valid?

A Non-Domestic EPC is valid for 10 years. After this period, you will need to renew your EPC if you intend to sell or let the property. It’s also recommended to review your EPC regularly, especially if significant changes are made to the building, such as upgrading heating systems or improving insulation, as these could improve your energy rating.

Minimum energy efficiency standards (MEES) and EPC

In addition to obtaining an EPC, commercial landlords must also comply with Minimum Energy Efficiency Standards (MEES). Since April 2018, it has been illegal to let commercial properties in England and Wales with an EPC rating below E, unless an exemption has been registered. From 1 April 2023, these regulations tightened further, requiring all let commercial properties to have a minimum EPC rating of E, regardless of when the lease was signed.

Why MEES matters for business owners

Failing to comply with MEES regulations can result in fines of up to £150,000. Improving your building’s energy performance to meet these standards is not only crucial for avoiding penalties but also offers long-term benefits, such as increased property value and lower operating costs.

How to improve your non-domestic EPC rating

If your EPC rating is lower than you’d like, there are several steps you can take to improve it:

Upgrade insulation: Enhancing roof, wall, and floor insulation helps to retain heat and reduces energy consumption.

Install energy-efficient lighting: Replacing outdated lighting with energy-efficient LEDs can improve your rating significantly.

Upgrade heating systems: Modern, energy-efficient heating systems can drastically reduce energy consumption.

Invest in renewable energy: Solar panels, heat pumps, and other renewable energy sources not only boost your EPC rating but also make your property more attractive to environmentally-conscious businesses.

Regular maintenance: Regular maintenance of heating, ventilation, and air conditioning (HVAC) systems ensures they run efficiently.

Get your non-domestic EPC today!

Whether you’re a commercial landlord, property manager, or business owner, obtaining a Non-Domestic EPC is an essential step towards managing your property efficiently and meeting legal requirements. Ensure your building is up to standard and avoid fines by scheduling an EPC assessment today.

At London Landlord Certifications (LLC), we specialise in providing Non-Domestic EPC assessments across the UK. Our accredited energy assessors can provide you with a detailed report on your building’s energy performance and recommend improvements to help you achieve a higher rating.

Get in touch today to book your assessment and start reaping the benefits of energy efficiency for your business.

Sources and references:

Gov.uk

EPC Register