EPC requirement commercial property: Regulation changes landlords must know

Proposed calculation updates

The Department for Energy Security and Net Zero has proposed several additional methodology changes that, while not yet implemented, signal the direction of future requirements:

• Low-carbon heating systems: Properties with heat pumps and other renewable heating solutions are expected to receive more favourable treatment in future calculations
• Gas heating: Conventional gas boilers may face stricter assessment under proposed changes to align with carbon reduction goals
• Advanced lighting systems: Greater differentiation between lighting technologies, with LED and smart control systems receiving preferential scoring

It's widely understood within the industry that these proposed methodology changes are designed to shift focus from pure energy costs toward actual carbon emissions, better aligning the assessment process with the UK's Net Zero ambitions.

2. Review heating systems

Current and proposed changes to EPC methodology are shifting how heating systems are evaluated:

• Recent updates to carbon factors in calculations already provide some advantage to electric heating solutions
• Industry experts anticipate that properties with gas boilers may face limitations in achievable ratings in future assessment updates
• Considering low-carbon alternatives now can provide long-term compliance benefits
• Hybrid systems that combine traditional and renewable technologies offer a practical transition pathway

Beyond the current minimum EPC standard of 'E', the UK Government continues to develop its framework for progressively stricter requirements. While the originally proposed targets (Band C by 2027 and Band B by 2030) have been outlined in our ultimate guide to EPC for commercial property, recent policy developments suggest potential adjustments to the implementation timeline.

What remains clear is the direction of travel toward increasingly stringent energy efficiency standards, with a growing focus on performance-based metrics including actual energy use measurements and operational carbon emissions rather than just theoretical ratings.

Building Information Modelling (BIM) has emerged as a powerful tool for commercial property owners seeking to improve their EPC ratings. This digital representation of a building's physical and functional characteristics offers several advantages:

• Data-rich assessments: BIM provides accurate building specifications that can significantly improve EPC assessment accuracy compared to default values
• Energy performance simulation: Advanced BIM tools can model energy consumption under different scenarios, helping identify the most effective improvement measures
• Retrofit planning: BIM enables detailed planning of energy efficiency upgrades with minimal disruption to tenants
• Lifecycle management: The model can track implemented changes and predict maintenance requirements, supporting ongoing compliance

BIM enables property owners to model various improvement scenarios digitally before implementation, potentially leading to more cost-effective retrofit strategies than traditional approaches.

For landlords managing multiple properties, BIM provides a centralised system for monitoring compliance status across the portfolio, with the ability to prioritise improvements based on regulatory deadlines and projected costs.