Complying with the UK Governments’ EPC Rating requirements is at the forefront of the minds of landlords, tenants and managing agents.  EPC ratings are defining a buildings future to bring energy efficiency into sharp focus.

Daniel Major, Property Management Associate at Metrus, explains the background on Energy Performance Certificates and how owning or occupying an energy efficient building has significant benefits.

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What is an Energy Performance Certificate?

An Energy Performance Certificate (EPC) is an official document which assesses and rates the energy efficiency of a property on a scale from A to G, with A being the most efficient. EPC ratings provide valuable information about a property’s energy consumption, carbon emissions and potential for improvement. The assessments consider factors such as insulation, heating systems, lighting and renewable energy sources.

It is a legal obligation for commercial and residential properties to possess a valid EPC when being constructed, sold or leased. These regulations aim to accelerate the overall energy efficiency of buildings in the country for the benefit of the landlords and occupiers, as well as the environment.

In 2018, the UK Government introduced the Minimum Energy Efficiency Standards (MEES) regulations which state all commercial and residential properties in England and Wales must have an EPC rating of at least E, with plans for buildings to have a C rating by 2027 and B rating by 2030.

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The Benefits of Energy Efficient Buildings

There are significant benefits to improving the energy efficiency of a building and achieving a high level EPC rating. This can considerably contribute to increasing the value and desirability of a commercial, residential or mixed use property. In fact, a growing number of landlords and tenants are increasingly seeking environmentally responsible places to own and occupy; they are prioritising energy efficient properties as they realise the long-term savings on utility bills and the reduced environmental impacts they offer. This can be done by upgrading insulation, installing energy-efficient lighting, optimising heating and cooling systems, and incorporating renewable energy sources can lead to reduced energy consumption and lower utility bills.

Data gathering and ESG reporting on a building’s carbon emissions is important and both Landlords and Tenants want to be in a position to share the evidence with various stakeholders. For example at one of our managed properties, we have a number of solar panels installed where remote monitoring of the system allows us to report on real time data to the landlord and tenant showing the environmental benefits of the system. According to the live data over the past 3 months, Metrus has demonstrated that the solar panels at this site have saved over 1,000 kg of CO2 emissions which is the equivalent of 62 trees planted. “The proof is in the pudding” and we as property managers can be in an advantageous position to report on the data in order to show a building’s reduced environmental impact for our landlord and tenant clients.