...and Minimum Energy Efficiency Standards (MEES) regulations for non-domestic buildings
What is an EPC?
An EPC rates a building’s energy efficiency 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 carbonefficient the building is.
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 exemption1
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 Feb 2025, the response is yet to be confirmed but the anticipated changes are:
• 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 2030?
The Government’s Winter 2024 consultation proposes several significant reforms to the Energy Performance of Buildings (EPB) framework. Key changes include:
• Reducing the 10-Year EPC Validity
• Requiring EPCs for listed buildings, which were previously exempt to support broader decarbonisation goals.
• Mandating a valid EPC throughout the duration of a tenancy, not just at the point of letting or renewal.
• Strengthening enforcement of EPC and MEES regulations, with a focus on improving compliance and data quality and Minimum Energy Efficiency Standards (MEES) regulations.
EPC ratings of non-domestic buildings in England and Wales
Government statistics indicate that approximately 10% of EPCs lodged to date have ratings of band F and G, which fall below the minimum standard for lettings required by legislation (subject to any exemptions) after 1 April 2023
Additionally, around 17% of EPCs lodged have achieved a rating of band B or higher, which is expected to be the minimum standard by 2030.
EPC Ratings for Non-Domestic EPCs lodged in England and Wales up to Q1 2025
EPC & MEES Summary Timeline
6 April 2008
1 July 2008
1 Oct 2008
9 Jan 2013
1 April 2018
June 2022
1 April 2023
Dec 2024
EPC required on sale, construction or letting of all buildings that are non-dwellings with a total useful floor area greater than 10,000m2
EPC required on sale, construction or letting of all buildings with a total useful floor area greater than 2,500m2
EPC required on sale, construction or letting of all buildings
All non-dwellings over 500m2 frequently visited by the public required to display a valid EPC clearly visible to members of the public (if an EPC has been produced).
EPC with a minimum rating of at least band E required for new leases and lease renewals
Changes to EPC methodology and software which can result in significant changes to energy performance assessed under the new software compared to the original.
EPC with a minimum rating of at least band E required for existing leases
Consultation on reforms to the Energy Performance of Buildings regime. Proposing significant changes to the application of EPCs with implications for MEES regulations.
