All that you need to know about Energy Performance Certificates (EPCs)

- Who needs an EPC?

- The EPC work process – what happens?

- Buildings that don’t require an EPC

Who needs an EPC?

An Energy Performance Certificate (EPCs) is needed whenever a property is:

• built

• sold

• rented

This must be done in advance of marketing/building the property in question.

The EPC gives information about a property’s energy use and typical energy costs and gives the property an energy efficiency rating from A (most efficient) to G (least efficient), which is based on the expected carbon emissions in comparison to another building of similar use.

All EPCs are valid for 10 years and are accompanied with recommendations about how to reduce energy use and save money.

If you are leasing a property, you will need to achieve a rating between A and E to comply with the Minimum Energy Efficiency Standards (MEES) legislation. Please see the MEES and Services Provided sections for more details.

The EPC Process – How does it all work?

The basics

If I am lucky enough to have you as my client, the first step will be to be arrange a time and date to come and visit your premises.

When I arrive, I will undertake a site survey which will mostly involve measuring the building, drawing a plan (or noting the measurements on a ready provided plan, if you have one) and taking photos and notes on all energy related aspects of the building.

All of these findings are then entered in detail into a piece of calculation software using the government approved methods. The software then generates the certificate rating and then the EPC can be registered and completed.

That’s the basics explained and what you will see from the outside. However, if you would like to know about the process in more detail, please keep reading….

Further information

The methods of calculation are different for non-domestic EPCs as they are to domestic EPCs, as follows.

Non-domestic EPCs

The calculation method for a non-domestic EPC is known as the Simplified Building Energy Model (SBEM). In order to be able to carry out the SBEM assessment correctly, the assessor will arrive on site and draw or use a floor plan to divide the building up in to zones depending on the activity within that zone (e.g. office, storeroom, shop area, kitchen, etc) and also the type of heating, ventilation, cooling, hot water source and lighting (whichever of these apply).

The assessor will also look at the outside of the building and inspect the type of wall, roof (if not covered by a property above), floor, windows and doors and try to ascertain the age of the building.

Where available, the assessor will try to obtain additional information regarding any of the above order to produce the EPC rating most reflective of the building. For example, if the building is supplied by a gas boiler, the assessor will typically take a photo and a note of the boiler manufacturer and model and research the efficiency of the boiler. You may have the boiler manual on site. However, manuals for most modern boilers (and air conditioning units) are available to download online.

If as the landlord/client, you do not have any such information available, an EPC can still be produced using ratings provided by the SBEM software. However, please feel free to pass on any information that you have available and wish to include in the calculation.

Once all of the aspects of the building are entered, the SBEM software will then calculate a rating comparing the values entered by the assessor against that of a notional building of similar type.

The rating is not strictly based on the expected number of units of energy used, but on CO2 emissions… so it does count to have fuels which are of lower carbon emissions and low/zero carbon emission technologies.

So solar panels on the roof don’t just save money on your electricity bills and make the roof look nicer, they will also improve your EPC rating too!!

Domestic EPCs

The calculation for a domestic EPC is known as the Reduced data Standard Assessment Procedure (RdSAP).

The on-site survey that RdSAP requires is not quite as complicated as an SBEM assessment, particularly as there is a much wider variety of non-domestic buildings than there are houses and flats.

However, the assessor is still required to take a detailed assessment of the property by calculating the floor area, taking notes of the amount and type of rooms in the property and taking an inspection of the external parts of the building to estimate the building age, measuring the wall thickness and noting the type of walls and roof. If it is a property with a pitched roof that has an accessible loft, the assessor will also inspect the loft and measure any insulation present.

Once all of the aspects of the building are entered, the RdSAP software will then calculate a rating comparing the values entered by the assessor against that of a typical, similar dwelling.

Certificate Ratings

Once all of that hard work is done, you then have your EPC. You will receive a rating between A and G on the EPC, which look like this: - (see left)

Buildings that don’t need an EPC

These include:

• places of worship

• temporary buildings that will be used for less than 2 years

• stand-alone buildings with total useful floor space of less than 50 square metres

• industrial sites, workshops and non-residential agricultural buildings that don’t use a lot of energy (please enquire as to what the guidelines mean by this)

• some buildings that are due to be demolished

• holiday accommodation that’s rented out for less than 4 months a year or is let under a licence to occupy

• residential buildings intended to be used less than 4 months a year

“But you’ve missed off listed buildings from this list”

It is thought by many in the industry that all listed buildings are automatically exempt from requiring an EPC. This is not true. In general, they require an EPC just like any other building that does not also fall under one or more of the criteria above in this section.

Where they would differ from other buildings is that due to their status, it is likely that less modifications can be made that would improve the building’s energy performance and EPC rating (this would be valid reasoning for applying for PRS exemptions – see MEES section for more details).

Display Energy Certificates (DECs) – all you need to know

If you are a landlord of a public sector occupied building or one occupied by an organisation carrying out services on behalf of a public sector organisation.

This applies to such buildings which are of at least 250m2 of floor area and which allow access to the public, including (but not limited to): -

- Schools

- Museums

- Community Centres

- Care homes

- Visitor centres

- Office blocks that have a reception

You are required to have a DEC the building displayed in a prominent place visible to the public (not tucked away in the storeroom!!).

DECs look similar to Non-Domestic Energy Performance Certificates (EPCs) in appearance, so are they the same?

They certainly do look similar.

Each certificate however, is an assessment of completely different aspects. An EPC is an assessment of the building’s physical aspects and the efficiency of its heating, cooling, ventilation and lighting (see the ‘EPC’ section for more details).

A DEC however, is a pure assessment of the building’s actual energy usage in relation to its size, therefore creating what is called an ‘Operational Rating’, as opposed to the EPC’s building ‘Asset Rating’. You will see that the DEC has tables showing how the total consumption is divided by type of fuel, and has a year on year comparison graphic. It also shows how the actual usage compares against typical building’s usage.

The valid ways of ascertaining a building’s energy consumption are through energy bills or meter readings. A year’s worth of energy data is required for a DEC to be calculated.

For buildings between 250-999m2, the DEC is valid for 10 years; for buildings of 1,000m2 or over, the DEC is valid for 1 year. Every DEC is accompanied by a Recommendations Report (RR) valid for 7 years.

And I hate to be the bearer of bad news but…… if your building requires a DEC/RR, you are liable to fines of £500-£1,000 from your local authority.

“My building has a poor EPC rating. Does that mean it will get a bad DEC rating too?”

Firstly, you don’t need to have an EPC in place before a DEC assessment takes place, as the building may never have been sold or rented.

However, the answer is “no”. A building that is less well insulated than others can still be complemented by energy efficient building occupiers that use heating controls well and turn off their lighting when not required.

The DEC Process

The DEC process starts with a building survey in which the assessor is required to leave being able to calculate the floor area (either you will provide floor plans, or the assessor will measure the building on site), having taken notes and photographic evidence of the building structure, heating and cooling, lighting and any other aspect appropriate (this is for the generation of a Recommendations Report…. please carry on reading for more details).

Once this is done, the assessor will then do an assessment using the government approved ORCalc software which will rate your building based on its energy consumption and size in comparison to a typical building of similar size and nature.

And there you have it, your brand new DEC is ready! However, the DEC is accompanied with a Recommendations Report (RR) – the RR can be tucked away…. but it is a very useful document giving advice and recommendations regarding ways you can change the building in order to reduce your energy usage… or to put it in a better way…. SAVE YOU MONEY! The RR will also try to offer zero or low cost improvements to the building. What more can you ask for?!

Renewal of expired DECs

The site survey is only required for the first year as it is just required for the production of the RR. Therefore, just a desktop assessment of your energy bills is needed for renewing your DEC year on year thereafter.

The assessor is only required to return to site if you have had any extensions to the building added and/or when the RR finally expires.

Minimum Energy Efficiency Standards (MEES)

Since April 2018, it has been a requirement for all privately rented buildings taking on new tenants or undergoing tenancy renewals to have an EPC or rating E or superior.

Therefore, if a building receives an EPC with rating F or G, the landlord is expected to make energy efficiency improvements to the building to improve the building to a rating of E or better.

Failure to comply with this leaves the building owner liable to fines.

In 2021, the Government proposed raising the minimum EPC rating on commercial, non-domestic premises to C by April 2027 and to B by April 2030

The government guidance on the following links gives full information on how to comply: -

Domestic properties - https://www.gov.uk/guidance/domestic-private-rented-property-minimum-energy-efficiency-standard-landlord-guidance

Non-domestic properties - https://www.gov.uk/government/publications/non-domestic-private-rented-property-minimum-energy-efficiency-standard-landlord-guidance

Please see the ‘Prices’ section on how I can help you in achieving your MEES compliance when you require it.

SBEM calculations, BRUKL reports and Non-Domestic EPCs for new builds

Before a new non-domestic building is constructed it needs to comply with UK Part L building regulations. The process for doing that is actually identical to that of a Non-Domestic EPC. Rather than having an actual building to enter (we don’t go to a plot of empty land either!), the process uses architect’s floor plans and elevations, building specifications, lighting designs, heating specifications, etc. to input the necessary data into SBEM in the same way as the data is input into SBEM for an EPC.

The building is then put into a calculation against the standards required to pass Part L regulations, so much more detailed information is needed to give the building a chance of passing the assessment.

The calculations are then relayed in the form of a Building Regulations UK Part L (BRUKL) report which details every aspect of the building, highlighting where the passes and fails are made. The BRUKL report is what your building control officer will require to sign of the building. If the building fails to comply, it is high likely that building control will ask for improvements or changes to be made to your design.

Typically, a building can easily fail the test on the first run due to lack of information, but like with any other SBEM calculation, the areas the building is failing on can be reviewed to see if any more information is required or of any tweaks or changes to the building specifications are needed.