Energy Performance Certificates (EPCs) are a critical tool for assessing and improving the energy efficiency of commercial properties, offering valuable insights into how a building performs.
More than just a compliance checkbox, EPCs feed into the UK Government’s broader strategy to decarbonise buildings and achieve net zero emissions targets by 2050.
However, according to government data analysed by Vail Williams, a quarter of commercial premises with existing Energy Performance Certificates (EPCs) could be unlettable by 2027, when the next phase of the Minimum Energy Efficiency Standards (MEES) Regulations is expected to come into force.
The analysis makes for worrying reading, as by April 2027, commercial premises are anticipated to be required to have an EPC rating of C or above.
According to last year’s data, over 26,000 properties achieved an EPC rating of D or below. If the energy efficiency of these properties does not improve by 2027, they will become unlawful and cannot be relet.
EPC timeline: What you need to know
To remain compliant and avoid business disruption, it’s vital to understand the phased timeline of EPC requirements:
- From 1 April 2018: Commercial premises must have a minimum EPC rating of E to be let or sold.
- From 1 April 2025: All properties within the scope of MEES (Minimum Energy Efficiency Standards) must present a valid EPC – or they cannot be relet.
- From 1 April 2027: All new and continuing leases must achieve a minimum EPC rating of C.
- From 1 April 2030: The minimum requirement rises again, with all new and existing leases needing an EPC rating of B.
- (Subject to Government review anticipated summer 2025).
Many older commercial buildings are inefficient and gas-reliant, which often results in poor or failed EPC ratings. The EPC metric reflects the Government’s strategic push to reduce fossil fuel use and increase adoption of efficient, renewable systems.
Avoiding Business Interruption: What landlords and occupiers should consider
For landlords and occupiers, staying compliant means more than ticking a box. It’s about protecting the future value of your asset – and avoiding costly business disruption.
Craig Fillingham, Partner in the Building Consultancy team at Vail Williams, advises:
“Early preparation, collaboration, engaging the right supply chain, and thinking creatively are all essential to future-proofing your building.”
Practical steps to improve EPC ratings
While there’s no one-size-fits-all solution, a range of compliant upgrades can significantly improve energy performance:
- Install LED lighting systems
- Replace gas heating with electric air source heat pumps, radiant heating, or infrared systems
- Swap gas hot water systems for electric storage or point-of-use units
- Upgrade thermal insulation across roofs, windows, and walls
- Introduce solar PV panels with battery storage
- Centralised building energy management systems
However, direct replacement isn’t always simple.
For example, switching from gas to electric heating can place extra demand on a building’s power supply – and in many cases, the existing capacity just isn’t enough to cope with the demand of the new system.
Increasing electricity supply is a complex process that can take over 18 months, and involve preparing detailed load calculations, applications to the local Distribution Network Operator (DNO), a detailed design process and installation work.
Think strategically: Tailor the solution
Early engagement with all stakeholders – including landlords, tenants, facilities managers, and engineers – can reveal opportunities to tailor your solution.
In a warehouse, for instance, does every cubic metre of space really need heating? Often, the answer is no.
This kind of insight can:
- Reduce capital costs on unnecessary upgrades
- Lower future energy bills
- Help avoid electrical capacity supply upgrades altogether
- Avoid unnecessary business interruption
A strategic, whole-building approach will often deliver the best long-term value.
Aligning EPC improvements with power planning
Occupiers should consider EPC upgrades alongside their future power needs – especially when planning for growth, new technologies, or equipment.
Bringing in an experienced building consultancy expert at this stage is vital. They can help:
- Align EPC upgrades with business strategy
- Introduce trusted design and compliance specialists
- Specify, procure, and project manage the entire process
Collaboration is key: Why landlords and tenants should work together
By engaging early, occupiers can help landlords accelerate their own net zero and MEES compliance goals.
This reduces the risk to tenants by avoiding forced relocations due to non-compliant premises – and protects the landlord’s rental income and asset value.
