If you own, sell or let commercial property, there's a good chance you'll need a commercial Energy Performance Certificate (EPC) at some point. Here's a plain-English guide to when you need one, when you don't, and what happens if you get it wrong.
What is a commercial EPC?
A commercial (or non-domestic) EPC rates the energy performance of a building on a scale from A+ to G, where A+ is net zero carbon and G is the least efficient. It comes with a recommendation report suggesting ways to improve the rating.
Commercial EPCs use a different calculation method from home EPCs, and they must be produced by an accredited non-domestic energy assessor.
When do you need a commercial EPC?
In England and Wales you need an EPC for commercial premises when:
you sell the building
you let the building, including new leases
a new building is completed (an On-Construction EPC)
a building is altered so it has more or fewer parts for separate occupation, and the heating, air conditioning or ventilation changes as a result
It's the owner or landlord's responsibility to arrange the EPC and make it available to prospective buyers or tenants.
How long does a commercial EPC last?
A commercial EPC is valid for 10 years. If you have a valid EPC, you don't need a new one every time a tenant changes. But if you've made improvements, such as new heating or lighting, a fresh EPC will show the better rating, which can matter for MEES (more on that below).
Buildings that don't need an EPC
Some buildings are exempt, including:
listed buildings, where improvements would unacceptably alter their character
temporary buildings that will be used for less than two years
places of worship
industrial sites, workshops and agricultural buildings with low energy demand
stand-alone buildings under 50 m² that aren't homes
buildings due to be demolished, where the right consents are in place
Exemptions can be more nuanced than they look, so if you're unsure, it's worth checking before you market the property.
Do you need to display your EPC?
Yes, if the building has a total useful floor area over 500 m², is frequently visited by the public and already has an EPC. In that case the EPC must be displayed somewhere prominent.
What happens if you don't have one?
Failing to provide an EPC to a prospective buyer or tenant can lead to a fine of between £500 and £5,000, based on the building's rateable value.
If you're letting, there's a second rule to think about. Under the Minimum Energy Efficiency Standards (MEES), most let commercial buildings must be rated E or better, and larger buildings will need to reach B from 2031. I've covered this in more detail in EPC B by 2031: What the New MEES Rules Mean for Lancashire Landlords.
Need a commercial EPC in Lancashire or Greater Manchester?
I'm Tom, a Level 4 Non-Domestic Energy Assessor accredited with Elmhurst and ECMK, covering Manchester, Preston, Burnley, Blackburn, Accrington and surrounding areas. If you're not sure whether you need an EPC, or you need one quickly for a sale or letting, get in touch for a quote.
This article is general guidance based on GOV.UK information for England and Wales. It isn't legal advice.