Published on:

13 January 2025

Updated on:

13 January 2025

Read time:

2 minutes

Sajid Fiaz

Compliance Manager

With only an estimated 28% of commercial properties currently meeting future minimum EPC standards, property owners and facilities managers face unprecedented challenges.

This comprehensive guide explores everything you need to know about EPC for commercial property and how to prepare for upcoming changes.

Understanding EPC for commercial property

Energy Performance Certificates (EPCs) provide a standardised assessment of a building's energy efficiency. EPC ratings for commercial buildings use an A-G scale, where 'A' represents the highest efficiency and 'G' the lowest.

These certificates remain valid for 10 years and provide crucial information about a property's energy performance and potential improvements.

The minimum EPC rating for commercial property currently stands at 'E', but this requirement is set to become more stringent in the coming years. Commercial buildings must display their EPC certificate if they:

  • Have a total useful floor area over 500 square metres
  • Are frequently visited by the public
  • Have already produced an EPC for sale, rental, or construction

EPC requirements for commercial property

All leased commercial properties must maintain an EPC rating of 'E' or above as of April 2023. Property owners must obtain an EPC when selling or renting the property, completing new construction, or making significant modifications to heating, cooling, or ventilation systems.

The cost of obtaining an EPC varies based on the building's size and complexity, typically ranging from £150 to £500. This investment is minimal compared to the potential penalties for non-compliance.

Understanding EPC for commercial property isn't just about compliance - it's about creating smarter, more efficient workspaces. At OP, we've helped numerous businesses transform their properties through strategic improvements that not only meet regulatory requirements but also enhance workplace performance and reduce operating costs.

Sajid Fiaz, Compliance Manager

Ready to transform your workspace

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When is an EPC not required for commercial property?

Several exemptions exist where EPC requirements for commercial property don't apply:

  • Listed buildings where improvements would unacceptably alter their character
  • Temporary buildings used for less than two years
  • Places of worship and buildings used for religious activities
  • Industrial sites and workshops with low energy usage
  • Detached buildings under 50 square metres
  • Buildings scheduled for demolition

Property owners must register these exemptions on the PRS Exemptions Register and renew them every five years.

Future EPC rating for commercial property​

The regulatory landscape for commercial properties is set to become significantly more demanding as the UK government pursues its Net Zero target by 2050.

The Government is expected to issue the following changes:

2025:

  • All leased commercial properties must have a valid EPC of 'E' or above
  • Property owners with expired EPCs must apply for new certification
  • This creates a baseline for future improvement

2027:

  • Minimum EPC rating for commercial property of “C”
  • Two-year compliance window opens from April 2025 to April 2027
  • Property owners must demonstrate progress towards target rating

2030:

  • Further increase to minimum EPC rating of 'B'
  • Compliance window runs from April 2028 to April 2030
  • Represents significant step-up in energy performance requirements

With approximately 28% of commercial properties currently rated 'D' or below, these upcoming changes pose significant challenges for property owners. Each phase includes a two-year "compliance window," allowing owners to either reach the necessary rating or demonstrate they've achieved the highest practical improvement within cost-effective boundaries.

The government's commitment to improving energy performance standards aligns with increasing market demand for low-carbon commercial spaces. 'Green' workspaces and retail units are becoming increasingly attractive to organisations focused on environmental responsibility and long-term sustainability.

Guide to green buildings

Improving EPC for commercial buildings

Building fabric improvements

Enhancing your building's physical structure offers efficiency gains:

  • Wall and roof insulation
  • Double or triple glazing installation
  • Improved building seals and draft protection

Service improvements

Upgrading building services can dramatically impact energy efficiency:

  • Modern HVAC systems with smart controls
  • LED lighting with motion sensors
  • Energy-efficient boilers and cooling systems
  • Building management systems

Cost considerations and business benefits

While improving EPC rating for commercial buildings requires investment, the benefits extend beyond compliance:

  • Reduced operational costs through lower energy consumption
  • Increased property value and marketability
  • Enhanced tenant satisfaction and retention
  • Improved ESG credentials
  • Future-proofed assets against tightening regulations

OP's approach to EPC improvements

As office design and fit out specialists, OP offers comprehensive solutions for improving your commercial property's energy efficiency. Our process begins with a thorough assessment of your current EPC rating and identification of improvement opportunities.

We then develop cost-effective improvement strategies that minimise operational disruption. Our experienced team manages improvements from start to finish, providing ongoing support to maintain and optimise energy efficiency improvements.

Next steps

The path to improved energy efficiency begins with understanding your current position. Check your existing EPC rating through the government's EPC register and assess your property against future requirements. Planning improvements based on cost-effectiveness and implementation timeline ensures strategic deployment of resources. Contact OP for professional guidance on improving your building's energy efficiency.

With significant changes to EPC requirements approaching and 88% of commercial properties currently below future standards, acting now is crucial. Whether you're facing immediate compliance challenges or planning for future requirements, understanding and improving your property's energy efficiency is essential for long-term success.

Contact OP today to discuss how we can help improve your EPC for commercial property's energy efficiency while maintaining operational effectiveness and minimising disruption.

Contact our team today

Meet the Author

Sajid Fiaz Compliance Manager
Sajid Fiaz Compliance Manager

With a deep understanding of regulatory requirements and a passion for environmental stewardship, Sajid ensures the company's operations align with legal standards and sustainability goals. His expertise in developing and implementing compliance programs and sustainable practices has significantly enhanced our ethical standing and environmental performance. Sajid's ability to balance regulatory demands with business objectives contributes to the company's reputation as a responsible and forward-thinking industry leader.

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