Non-Domestic Building Energy Audit Services
Recent years have seen the built environment undergoing a transformational shift as the government is driving the sector towards its goal of net-zero carbon by 2050. As a result, legislation concerning energy is becoming stricter and organisations must prepare their assets for these changes or risk becoming obsolete. Conducting an energy audit is the most effective way to identify potential concerns in your building.
Minimum Energy Efficiency Standards (MEES)
The Minimum Energy Efficiency Standards (MEES) require landlords granting a new lease of commercial premises to hold an Energy Performance Certificate (EPC) with a rating of E or above, unless an exemption applies and has been registered on the Private Rented Sector Exemptions Register (Register). As of 1st April 2023, it is unlawful for a landlord to continue to let commercial properties with an EPC rating of F or G, unless it has registered a valid exemption.
Further to this, legislation is likely to become more stringent in the near future. The government’s 2019 consultation on a future regulatory target for the Non-Domestic Private Rented Sector Regulations of EPC B by 2030 gained large support. As a result, the government’s 2020 Energy white paper confirmed that the future trajectory for the non-domestic minimum energy efficiency standards (MEES) will be EPC B by 2030.
What are the next steps for asset owners?
This is particularly pressing for the non-domestic property market. At present, there are 1.7 million non-domestic buildings in the UK, and a vast number of these do not meet the current energy requirements which presents a significant challenge for property owners. If assets are non-compliant, owners can no longer legally let them, resulting in the building becoming an unusable stranded asset. Failure to comply with requirements and continuing to let premises can result in a fine of up to £150,000 per offence as well as being ‘named and shamed’ on the Register.
However, even if buildings meet the minimum standards, there is a strong appetite from the market to maximise sustainability efforts, as highly efficient assets are proving to be commercially appealing for landlords, investors and tenants. JLL research suggests an 11% rental premium for a building with an EPC rating of A or B in Central London.
Therefore, it is important to begin making these changes now. Even if buildings are compliant with the current EPC rating of E or above, the UK government’s proposals to raise minimum ratings for buildings’ energy performance certificates (EPCs) from C to B by 2030 will force many commercial buildings to undergo extensive improvements. With only seven years to go, it’s important to begin future-proofing imminently to prevent the risk of assets becoming stranded.
