Energy Performance Certificates (EPCs)...
...and Minimum Energy Efficiency Standards (MEES) regulations for non-domestic buildings
What is an EPC?
An EPC rates a building’s energy performance on a scale from A+ (most efficient) to G (least efficient), based on estimated carbon emissions from energy use. The higher the rating, the more energy and carbon-efficient the building.
This rating, known as an asset rating, is determined by the building’s physical characteristics (such as
insulation and materials) and its services (like heating, lighting, and ventilation). It also considers the building’s age and condition.
EPCs are designed to inform prospective buyers or tenants about a building’s energy performance, helping them assess potential energy costs and environmental impact before making investment or leasing decisions.
EPC regulations
Since April 2008, it has been a legal requirement for buildings to have an EPC when built, sold, or let. From April 2023, all let commercial properties in England and Wales must have a valid EPC, regardless of lease activity. Properties with expired certificates must renew them, and those rated below EPC E cannot legally be leased unless registered for an exemption.
Additionally, since January 2013, non-residential buildings over 500m² that are frequently visited by the public must display a valid EPC in a prominent, visible location.
EPCs must be produced by certified, independent assessors and lodged on the Government EPC Register. Once issued, they remain valid for 10 years unless significant changes are made to the building.
What are MEES?
MEES regulations set the legal minimum EPC rating a building must achieve before it can be let. These rules apply to leases lasting more than six months and less than 99 years. Since April 2018, a minimum rating of EPC band E has been required for new leases and renewals. As of April 2023, this standard now applies to all existing leases as well.
From 1 April 2023, all rented commercial properties in England and Wales must have a valid EPC in place for the duration of the tenancy – not just at the point of letting.
Non-compliance can result in fines of up to £150,000, depending on the severity and duration of the breach, and may lead to public disclosure on the PRS Exemptions Register.
Exemptions are available under specific, time-limited conditions, including:
• Cost grounds: If required improvements fail the 7-year payback test
• Third-party consent: If consent for improvements is sought but refused
All relevant improvements made: If all feasible upgrades have been completed but the building still falls short of the standard.
The Government consultation concluded in February 2025 and the anticipated changes included:
• Reducing EPC validity from 10 years
• Requiring EPCs for listed buildings
• Introducing multiple performance metrics (e.g. carbon, energy use, smart readiness)
• Raising the minimum EPC rating to C by 2027 and B by 2030
Legal requirements
MEES 2018 regulatory requirements
Since 1 April 2018, it has been legally required that a building must achieve a minimum EPC rating of band E before a new lease can be entered into or an existing lease can be renewed.
Any building subject to a lease agreement with a new tenant must have a valid EPC of at least band E lodged on the EPC register prior to letting. Failure to comply with this requirement can have significant consequences.
Future policy changes - band B by 2031 for larger buildings
In a written statement published on 18 June 2026 by the Department for Energy Security and Net Zero, the Government said that, from 2031, privately rented non-domestic buildings over 1,000 square metres are expected to be required to meet a higher energy efficiency standard of EPC ‘B’, where cost effective. Buildings below 1,000 square metres are expected to remain subject to the current EPC ‘E’ minimum standard.
The Government has now indicated that it intends to focus the proposed EPC ‘B’ requirement on larger premises where the greatest benefits are expected to be delivered, while giving smaller businesses, landlords and high streets more flexibility to upgrade buildings over time.
The previously consulted interim EPC ‘C’ milestone for 2027 is not expected to be taken forward. Existing flexibility mechanisms, including the sevenyear payback test and exemptions, are expected to remain in place, meaning only improvements that are practical, affordable and cost-effective should be required.
