Energy Performance Certificate (EPC)
An EPC is a rating that shows the energy efficiency of a building on a scale from A (most efficient) to G (least efficient), required for buildings that are sold, rented, or constructed in the UK.
What is Energy Performance Certificate (EPC)?
Energy Performance Certificates were introduced in England and Wales in 2007 as part of the EU Energy Performance of Buildings Directive. They provide a standardised energy efficiency rating based on the building’s physical characteristics (insulation, heating system, glazing) rather than actual energy consumption. An EPC is valid for 10 years.
EPCs are legally required when a property is built, sold, or rented. The certificate includes the current energy rating, a potential rating (achievable through recommended improvements), and a list of cost-effective improvement measures. For commercial properties, Display Energy Certificates (DECs) based on actual energy consumption are required for public buildings over 250 m².
The Minimum Energy Efficiency Standards (MEES) use EPC ratings as their enforcement mechanism. Since 2023, it has been illegal to let commercial properties with an EPC rating below E. The government has consulted on raising this to B by 2030, which would require significant investment in energy efficiency across the commercial property stock.
Practical Examples
A landlord upgrades a commercial property from EPC D to B by installing LED lighting, improving insulation, and replacing the gas boiler with a heat pump, at a cost of £150,000.
A property investor screens its portfolio for EPC ratings, identifying 15 properties rated E or below that require immediate investment to maintain lettability under MEES.
A tenant uses the EPC-recommended improvements list as a negotiating tool in lease discussions, requesting the landlord fund energy efficiency upgrades before renewal.
How Climatise Helps
Climatise tracks actual energy consumption alongside EPC ratings for portfolio properties, identifying buildings where energy performance deviates from the EPC prediction and prioritising retrofit investment.
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