Guidance on Non-domestic private rented property: efficiency standard
If your organisation leases a commercial premises, you need to know this.
Please see below guidance to landlords of privately rented non-domestic property on complying with the 2018 ‘Minimum Level of Energy Efficiency’ standard (EPC band E).
As you are aware the Energy Performance Certificate (EPC) rates how energy efficient a building is, and the building will be awarded a grade from A (most efficient) to G (least efficient).
From 1 April 2023, landlords must not continue letting a non-domestic property which has an EPC rating lower than E – unless that property qualifies for an exemption and has registered that exemption. Note: pre-existing leases are also affected.
Various exemptions might apply such as industrial sites, workshops, holiday lets, farm buildings, some listed buildings. If the building has an existing EPC and there are cost-effective energy efficiency improvements which could raise that property’s EPC rating to a minimum of E, the improvements should have been completed by April 1st, 2023.
And that’s not all…
The target EPC rating increases to grade C by 2027 and grade B by 2030.
So, if you’re about to enter into a lengthy commercial lease, the energy efficiency of the premises might be or become a factor. Please note none of the above is intended as regulatory or legal advice, please seek an expert professional opinion before making any decision.
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