Energy Performance Certificates Explained

What This Requirement Covers

An Energy Performance Certificate (EPC) provides a rating of the energy efficiency of a building on a scale from A (most efficient) to G (least efficient). EPCs are a legal requirement when buildings are built, sold, or rented, and are used to demonstrate compliance with energy efficiency regulations including the Minimum Energy Efficiency Standards (MEES).

Key Requirements

When an EPC Is Required

1. When a new building is constructed (produced from the SAP calculation)
2. When an existing building is sold or let (produced by an accredited energy assessor)
3. When a building is modified in a way that changes its energy performance (e.g., change of heating system, extension)
4. EPCs are valid for 10 years from the date of issue

The EPC Rating

1. EPCs rate buildings from A (most efficient, score 92-100) to G (least efficient, score 1-20)
2. The rating is based on the estimated energy costs per square metre per year
3. The certificate includes:

- The current energy efficiency rating - The potential rating if recommended improvements are made - Recommended energy-saving measures with estimated costs and savings - The environmental impact (CO2) rating

Minimum Energy Efficiency Standards (MEES)

Since April 2018 (domestic) and April 2023 (non-domestic), the Minimum Energy Efficiency Standards Regulations require

1. Domestic lettings: Landlords must not let a property with an EPC rating below E unless a valid exemption is registered
2. Non-domestic lettings: Properties must achieve an EPC rating of at least E to be let
3. The Government has consulted on raising the minimum standard to C by 2028 (domestic) and B by 2030 (non-domestic), but these proposals have been paused
4. Non-compliance can result in fines of up to GBP 5,000 per property (domestic) or up to GBP 150,000 (non-domestic)

MEES Exemptions

Exemptions are available where

1. All relevant improvements have been made and the property still does not reach the minimum rating
2. The cost of improvements would exceed the applicable spending cap
3. Required improvements would reduce the property value by more than 5%
4. A third-party consent (e.g., planning permission, freeholder consent) is required but has been refused
5. The property is listed and the improvements would unacceptably alter its character

Exemptions must be registered on the PRS Exemptions Register and are valid for 5 years.

SAP and RdSAP

1. SAP (Standard Assessment Procedure): The full energy calculation methodology used for new dwellings and major renovations
2. RdSAP (Reduced Data SAP): A simplified version used for existing dwellings, based on a site survey and assumptions about the building
3. Both are maintained by BRE on behalf of the Government
4. SAP assessors must be accredited by an approved scheme (e.g., Elmhurst, Stroma, ECMK)

Practical Compliance Tips

1. Obtain an EPC before marketing a property for sale or rent; failure to provide one is a legal offence
2. Check the EPC rating of rental properties against MEES requirements before signing a new tenancy
3. Use the EPC recommendations as a guide for energy improvements, but obtain independent advice on the most cost-effective measures
4. For new builds, the SAP assessment drives the design of the building fabric and services; engage the assessor early
5. Keep copies of EPCs with the property records; they are also available on the Government's EPC register
6. When purchasing a property, review the EPC for its current rating and the cost-effectiveness of recommended improvements
7. For landlords, plan for potential future increases in the MEES threshold by making energy improvements when properties are vacant