Understanding the Commercial Energy Performance Certificate

What is a Commercial EPC

A Commercial Energy Performance Certificate (EPC) is a legally required document that rates a commercial building’s energy efficiency. Expressed on a scale from A+ to G, with A+ denoting the most energy efficient and G the least, the energy performance certificate EPC plays a crucial role in how commercial properties are assessed, marketed, and operated. The rating reflects how much energy the building consumes in relation to its size and use, along with the level of carbon emissions it produces.

An EPC is valid for ten years unless a new one is commissioned due to significant modifications that affect the building's energy performance. It is mandatory for any new building that is not a dwelling, particularly when being sold, rented, or undergoing construction. Separate EPCs may be necessary if different parts of a building have separate heating systems or are under separate occupation.

When is it Required?

A commercial EPC is legally required for all commercial properties that are to be sold, rented, or newly constructed. This includes buildings such as shops, offices, warehouses, industrial sites, and other non-domestic spaces used for business purposes. The EPC provides a prospective buyer or tenant with a clear understanding of the property's energy efficiency, supporting informed decisions around operation costs and environmental impact.

In England and Wales, all commercial premises that are either let or sold must have a valid EPC. The document must also be made available to any potential buyer or tenant at the earliest opportunity. There are exceptions, including buildings intended for demolition, temporary buildings with a planned use of less than two years, and buildings with very low energy demand, such as some agricultural barns.

The EPC is not required for buildings officially protected as part of a designated environment, where energy efficiency improvements would unacceptably alter their character or appearance, or for buildings used for religious activities. Detached buildings with a total useful floor area of less than 50m2 may also be exempt under certain conditions.

The EPC Process

Obtaining a Commercial EPC

To acquire a commercial EPC, you must engage a certified energy assessor qualified under an official accreditation scheme. The assessor will be experienced in conducting non-domestic EPCs and will evaluate the building in accordance with all the relevant planning, building regulations, and mechanical ventilation systems.

During the assessment, the energy assessor collects data on the property's physical attributes including total floor space, insulation levels, air conditioning systems, fixed heating, lighting systems, and the layout. Information about renewable energy sources, such as solar panels or heat pumps, is also recorded. The assessor will evaluate how much energy the building is likely to use, generating a recommendation report outlining measures to improve the building's energy performance and meet minimum energy performance requirements.

Once the assessment is complete, the commercial EPC is registered with a unique certificate number and made available to the building owner. The resulting document includes an energy efficiency rating and recommendations for improving energy performance.

How Much Does a Commercial EPC Cost?

commerical EPC Energy Performance certificate — Image source: EPC Training

The cost of obtaining a commercial EPC varies depending on the complexity and size of the property. For small commercial properties, such as retail shops or small offices, prices typically range from £100 to £300. For larger commercial properties, such as industrial sites or multi-floor office buildings, the cost may range from £500 to £1,500 or more.

This one-off investment can deliver long-term benefits by revealing opportunities to reduce energy usage, lower operating costs, and enhance energy efficiency levels. Many commercial building owners also view the EPC as a strategic tool for planning capital improvements and future-proofing their business premises against stricter environmental regulations.

Commercial EPC Ratings Explained

The energy efficiency rating system used in EPCs ranks buildings on a scale from A+ to G. An A+ rating represents a net zero energy performance, while a G rating signifies very poor energy performance. This system provides clear indicators of how efficient or inefficient a property is, helping stakeholders understand energy consumption levels, carbon emissions, and potential for cost savings.

Under current Minimum Energy Efficiency Standards (MEES), any commercial property being rented must achieve at least an EPC rating of E. These standards are tightening, with requirements set to increase to a minimum of C by 2028 and B by 2030. Non-compliance with MEES regulations can result in financial penalties and limitations on leasing activity.

Buildings may qualify for exemptions if the owner can demonstrate that required improvements are not cost-effective or technically feasible, especially in cases involving providing or extending fixed heating, air conditioning, or mechanical ventilation systems.

Improving Energy Performance in Commercial Properties

loft insulation — Image Source: Loft Zone

Improving a building's energy performance is vital not only for compliance but also for reducing operational costs, enhancing asset value, and attracting eco-conscious tenants or buyers. Some common strategies to boost a commercial EPC rating include upgrading insulation, modernising heating and cooling systems, switching to energy efficient lighting, and installing renewable energy sources such as solar panels.

Investments in double glazing, efficient ventilation systems, and building automation technologies can also improve a property's energy efficiency rating. Platforms like CIM's Building Analytics can help optimise energy usage, ensuring your commercial building operates at peak efficiency.

Engaging with advisory bodies like the Carbon Trust and Energy Saving Trust can provide additional guidance, resources, and financial incentives for making energy efficiency upgrades.

EPC Exemptions and Special Cases

You do not need an Energy Performance Certificate (EPC) if the building is a temporary structure.
You do not need an EPC if the building is a place of worship.
You do not need an EPC if the building is a historic building that would be damaged by energy efficiency improvements.
You do not need an EPC if the building is a building that is being demolished.
A building is exempt if it’s vacant and not intended for occupation.
A building is exempt if it’s being demolished and not intended for reoccupation.

The Importance of Accreditation Schemes

Energy assessors conducting commercial EPC evaluations must be registered with an official accreditation scheme. These schemes validate that assessors possess the technical skills, experience, and training required to produce accurate and reliable energy performance certificates.

The type of assessor required will depend on the size, layout, and complexity of the commercial property. For example, an assessor qualified to work on simple retail units may not be authorised to assess larger or more complex buildings, such as industrial sites or properties with extensive mechanical ventilation systems.

Choosing an accredited professional ensures that the recommendation report and energy rating reflect the property's true energy efficiency performance, providing reliable data for decision-making.

Displaying Your Commercial EPC

For certain commercial properties, particularly those that are frequently visited by the public, there is a legal requirement to display the energy performance certificate in a visible location. This typically includes reception areas or main entrances of business premises. The purpose is to promote transparency and public awareness of energy efficiency levels.

Failure to display a valid EPC where required can result in penalties under the Energy Performance of Buildings Regulations. Property owners should ensure that the EPC is up to date and accurately reflects any changes made to the building’s structure or heating systems.

You must display an EPC by fixing it to your commercial building if it’s a non-domestic property.
The EPC must be displayed in a prominent location, such as the entrance or reception area.
Displaying an EPC is a requirement under the Energy Performance of Buildings Regulations.

Recent Changes to EPC Regulations

Recent government consultations have focused on reforming the Energy Performance of Buildings (EPB) framework to support the UK's transition to net-zero carbon emissions by 2050. These proposed reforms aim to improve the accuracy and consistency of EPC assessments and integrate new metrics to reflect real-world energy usage.

As part of this broader strategy, minimum EPC ratings for rented commercial premises will progressively increase, requiring building owners to invest in more efficient buildings. These regulatory changes will directly impact planning decisions, investment strategies, and long-term asset management.

Commercial property owners should stay informed of changes in the MEES framework and work proactively to meet or exceed minimum energy performance requirements. This may involve regularly reviewing their building's EPC and implementing the measures outlined in the recommendation report.

Maximising Energy Efficiency in Business Premises

CIM’s Building Analytics Platform is instrumental in boosting your EPC score and delivering substantial value to your commercial property.
The platform enhances your energy efficiency journey by:
- Improving cost-effectiveness
- Enhancing sustainable operations
- Providing a competitive edge in the commercial property market
Greener property may result in higher returns and/or lower costs.
Investors may need to disclose an EPC rating of G when selling a commercial property.

Conclusion

A Commercial Energy Performance Certificate is a critical tool for evaluating, improving, and communicating the energy efficiency of commercial properties. From understanding the legal obligations and EPC rating system to implementing practical energy-saving improvements, business owners must treat EPC compliance as an integral part of property management.

By working with accredited energy assessors and adopting energy-efficient technologies, commercial building owners can reduce carbon emissions, lower operational costs, and maintain competitiveness in a sustainability-conscious market. Ensuring your building meets current and future minimum EPC ratings is not only a regulatory requirement but a strategic move towards a low-carbon future.

Whether you manage an office, industrial site, or non residential agricultural building, understanding your obligations under the energy performance certificate EPC framework is key to enhancing your property's energy performance and value.

Ready to Improve Your Building’s Energy Performance?

While we don’t provide EPC assessments ourselves, OAK Network specialises in helping businesses take the next step after their EPC—by turning insights into action. Our smart analytics platform and advisory services support you in identifying inefficiencies, tracking performance, and planning impactful upgrades that align with legal requirements and sustainability goals.

Whether your building needs to improve its EPC rating or you're aiming for long-term energy savings, we're here to help.

Get in touch with our team to explore how we can support your business on the journey to better energy performance.

Commercial Energy Performance Certificate Essentials

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