Why EPC ratings matter for commercial property owners

Whether you own a small shop, a portfolio of offices, or a single commercial unit, understanding Energy Performance Certificate (EPC) requirements is essential for staying compliant and protecting long-term value.

The current climate crisis affects everyone, and there's growing pressure to prioritise sustainability in every area of life. In the UK, the vast majority of commercial buildings are existing stock rather than new builds — and the property sector is estimated to account for around 40% of the UK's total greenhouse gas emissions. It's therefore increasingly important for owners and occupiers to assess a building's environmental impact — and take steps to improve it, whoever is in occupation.

The government aims to achieve net-zero carbon emissions by 2050. As part of this, more legislation is being introduced to improve the energy efficiency of buildings.

One of the key tools being used is the Minimum Energy Efficiency Standards (MEES), particularly the rules surrounding EPCs.

For a detailed breakdown of EPC requirements for non-dwellings, see the UK Government's official guide on EPCs for the construction, sale and let of non-dwellings (PDF).

What is an EPC and when do you need one

An EPC is a legal document that measures a commercial building's energy efficiency. It gives the property an asset rating from A+ (most energy efficient) to G (least efficient). The certificate includes a breakdown of the property's environmental performance and a recommendation report suggesting how it can be improved.

EPCs are valid for 10 years from the date of issue. You must have a valid EPC to sell, let, or construct a commercial property. You'll also need a new EPC if you have changed fixed services — such as heating, ventilation, or air-conditioning systems — that alter how the building is used.

EPCs must be produced by a qualified non-domestic energy assessor registered with an accredited scheme.

EPC regulations for commercial property

The government is tightening EPC rules in stages — with key deadlines in 2023, 2027 and 2030 that every commercial landlord needs to know.

• Current rule is a minimum rating of E: 
  Since 1 April 2023, all commercial properties that are leased — whether under a new lease or an existing one — must have an EPC rating of at least E, unless a valid exemption applies.
   
• By 2027 the minimum rating will be C: 
  From 2027, the minimum required rating for commercial lets is expected to rise to C. Many landlords will need to carry out energy efficiency improvements to stay compliant.
   
• By 2030 the minimum rating will be B: 
  A minimum B rating by 2030 marks a significant step up from current rules. Most commercial landlords will need to plan and implement upgrades well in advance to meet this target.

EPC exemptions for commercial property

Some properties are exempt from EPC requirements. Common exemptions include:

• Listed or protected buildings where energy improvements would alter their character
• Temporary buildings (used for less than two years)
• Detached buildings under 50 square metres
• Industrial or agricultural buildings with low energy demand

Even where an EPC is not required, landlords may still wish to assess energy efficiency to future-proof their investment.

What happens if you don't comply

Landlords who fail to meet EPC requirements risk serious consequences. Without a valid EPC, a property may become unlettable and lose market value. You can also be fined between £500 and £5,000 based on the rateable value of the building if you do not make an EPC available to any prospective buyer or tenant.

With more change on the horizon, now is the time for commercial property owners and managers to review their buildings' environmental performance and take action.

How we can help

Whether you're a landlord preparing for the 2027 or 2030 changes or buying, selling, or leasing commercial property, it's essential to factor EPC compliance into your plans.

Our commercial property solicitors work closely with clients on all aspects of commercial transactions — including lease drafting, sales and acquisitions, and development projects. We help ensure your contracts, obligations, and investment strategies reflect the latest legal and regulatory requirements around energy efficiency and building standards.

For practical legal advice on your commercial property matters, get in touch with our team.