The government has outlined its intentions for future EPC regulations affecting commercial rented properties across England and Wales. While the proposed changes still require legislation before becoming law, they provide businesses, landlords, and property managers with greater clarity on what may be required over the coming years, an update following our previous blog post sharing the upcoming changes.
For organisations that occupy or own larger commercial premises, understanding these EPC regulations is essential. Energy efficiency is no longer a sustainability nice-to-have. It is becoming an increasingly important factor in managing operating costs, maintaining property value, and preparing for future compliance requirements such as this.
At Harvest Green Developments, we work with businesses across the UK to improve energy performance through solar and complementary renewable energy solutions. We believe that understanding these proposed EPC regulations now can help organisations make better informed decisions long before any compliance deadlines arrive.
What are EPC regulations?
Energy Performance Certificates (EPCs) measure the energy efficiency of a building and assign a rating from A to G, with A representing the most energy-efficient properties and G representing the least efficient. Under the current Minimum Energy Efficiency Standards (MEES), landlords cannot let commercial properties with an EPC rating below E unless a valid exemption applies. The latest proposals focus on strengthening these EPC regulations for larger rented commercial buildings while maintaining existing requirements for smaller premises.
What changes have been proposed?
The government has confirmed its intention to introduce a more targeted approach to commercial EPC regulations. These proposals are designed to focus investment on the buildings where the greatest energy savings can be achieved while providing additional flexibility for smaller businesses and landlords.
The proposed changes include:
- Commercial rented buildings larger than 1,000 square metres will be required to achieve an EPC rating of B by 2031, where improvements are considered cost-effective.
- Commercial properties below 1,000 square metres will continue to be subject to the current EPC E minimum standard.
- The previously proposed EPC C milestone for 2027 will not be introduced.
- Existing exemptions and the seven year payback test will remain available.
- The new EPC B requirement will only take effect following parliamentary approval through secondary legislation.
Why are EPC regulations being strengthened?
Commercial buildings account for a significant proportion of the UK’s energy consumption. Improving the efficiency of these buildings can reduce energy demand and lower carbon emissions. This also supports businesses in lowering costs as a result too; government estimates suggest that tenants occupying larger commercial buildings could collectively save up to £360 million annually in energy costs once the proposed measures are fully implemented. For many organisations, energy costs remain one of the largest controllable overheads. Improving building efficiency can therefore deliver both environmental and financial benefits. This is one of the reasons why EPC regulations continue to evolve. The objective is not solely to improve compliance but to encourage investment in buildings that are cheaper to operate and less exposed to future energy market volatility.
Which buildings are most likely to be affected?
The proposed EPC B requirement is expected to apply to private rented commercial properties exceeding 1,000 square metres. For many of these properties, achieving an EPC B rating may require a combination of energy efficiency measures rather than a single upgrade. Every building will be different, which is why early assessment is important.
Affected buildings include, but are not limited to:
- Manufacturing facilities
- Warehouses and distribution centres
- Industrial units
- Large office buildings
- Retail parks
- Logistics facilities
- Multi-site commercial portfolios
How can businesses improve their EPC rating?
Many organisations may be reading this and assume that improving EPC ratings involves major structural alterations. While building fabric improvements can contribute to better performance, several technologies can help improve energy efficiency and deliver operational savings in a more efficient and cost effective way. We’ve shared some key areas that tick both of these boxes whilst supporting your journey to the new compliance.
Commercial solar panels
Solar PV systems generate renewable electricity directly on site, reducing reliance on imported grid energy. For many commercial buildings, solar can significantly reduce electricity consumption from the grid while supporting broader sustainability objectives. Payback periods for solar are more competitive than ever, so if you install now, by the time compliance comes into effect, you’ll have already paid off the asset and enjoyed the compounding financial benefits. We’ve worked with some of the largest businesses in the UK on their renewable and EPC journey and the savings provided alongside the sustainability benefits are exceptional.
Battery energy storage
Further to solar, battery storage enables businesses to store surplus solar generation and use it when required and is a fantastic way to enhance an existing system or advance a new one. By installing a battery, it increases self consumption, improves energy management, and can further reduce electricity costs. Much like solar, pricing is becoming more and more competitive, and clients have been really surprised by how accessible the technology now is. We have advanced modelling software to show you the return and impact right from the early stages to support your decision as you consider your EPC journey.
LED lighting upgrades
Replacing outdated lighting systems with LED technology can provide immediate reductions in energy consumption while improving workplace environments. LED lights are also recyclable and use up to 80% less electricity than incandescent bulbs, not to mention their exceptionally long operational life, often lasting 25,000 – 50,000 hours.
Building energy management systems
Monitoring and controlling energy use more effectively often reveals opportunities to reduce waste and improve operational efficiency and is a tool many facilities managers overlook to identify trends and recognise where further improvements can be made and can share the data of the impact of implemented technology.
Heating and ventilation improvements
Modern HVAC systems can significantly reduce energy consumption compared to older equipment while improving occupant comfort. We work with businesses on a principal contractor basis to help align this wide range of improvements to buildings to ensure maximum impact during one programme of events. We manage all areas of construction to take the stress away from your teams time so they can concentrate on their time in the business, and we’ll provide regular updates as often as required.
Why businesses should not wait until 2031
One of the most common misconceptions surrounding EPC regulations is that businesses can delay action until a compliance deadline approaches. In reality, waiting often results in years of avoidable energy expenditure. Every month that an inefficient building remains unchanged is another month of higher operating costs. Those who invest in energy efficiency improvements earlier can begin capturing savings immediately while strengthening their position for future compliance requirements. For example, a commercial solar installation can start reducing electricity purchases from the grid from the moment it becomes operational. Those savings accumulate year after year rather than only becoming relevant when EPC regulations change. The proposed 2031 deadline should therefore be viewed as a point by which improvements will need to be completed, not the point at which businesses begin considering their options.
What does this mean for landlords?
This means commercial landlords should consider reviewing their property portfolios sooner rather than later. Buildings with stronger EPC ratings are often more attractive to prospective tenants, particularly as businesses place greater emphasis on sustainability and operational efficiency. Understanding which properties require future improvements allows landlords to develop long term investment plans and avoid rushed decision making closer to compliance deadlines, which will cause a reduction in the availability of reputable installers as all landlords try to have similar work completed at the last minute. This can lead to further issues with poor workmanship and inappropriately installed systems and technology when decisions are made based on panic instead of research and education.
How we help businesses prepare for future EPC regulations
As these new regulations come around, it is important to understand your legal requirements, so we’re proud to help businesses understand how energy technologies can contribute to improved building performance and reduced energy costs. Our commercial solar and battery storage solutions are designed to help organisations generate more of their own electricity, and support long term energy strategies to combine with new regulations or as businesses want to pursue greater sustainability goals.
Whether your business operates a single site or a nationwide property portfolio, understanding your current energy performance is the first step towards preparing for future EPC regulations. By assessing opportunities today, businesses can create an optamised roadmap that supports compliance objectives while delivering measurable financial benefits long before any regulatory deadline arrives.
Understanding the opportunity behind EPC regulations
While much of the discussion around EPC regulations focuses on compliance, the wider opportunity should not be overlooked. Buildings that consume less energy are cheaper to operate, more attractive to occupiers, and better positioned for a future where energy efficiency continues to play a larger role in commercial property decisions. The proposed EPC B requirements provide businesses with an opportunity to evaluate their buildings, identify areas for improvement, and invest in solutions that can generate long term value. For organisations occupying larger commercial properties, early planning today could help unlock years of energy savings while reducing the pressure of future compliance requirements, and we’re here to help you on this journey.
