Since April 2023, all commercial properties have been required to have an EPC rating of E or above, which is also relevant to both new and old leases. By 2027, all commercial properties need to have an energy efficiency rating of ‘C’ and ‘B’ by 2030.  

EPCs (energy performance certificates) are a vital part of being able to show your customers that you’re putting in the effort to be as energy efficient as possible.  

An assessor will arrive at your property to undergo an assessment of it and will then give you a rating between A and G, with A being the most efficient and G being the least efficient. Once you have your EPC rating, you’ll be given recommendations that, when implemented, will improve the energy efficiency of your building.  

EPC regulations  

EPC certificates were first introduced as part of a broader initiative to improve the energy efficiency of buildings by the European Union’s Energy Performance Buildings Directive (EPBD). In 2007, EPC certificates became a legal requirement for all new constructions, including properties being sold or rented. The idea behind this initiative was to encourage transparency with energy usage and energy-saving measures.

So, a landlord looking to sell their commercial property, for example, will benefit from having a good EPC score during transactions because:  

• Potential buyers are provided with transparency regarding the building’s energy performance and its expected energy costs

• Stakeholders are able to benchmark the building with others and compare energy efficiency, helping them establish which buildings require more improvement  

• England and Wales require all commercial properties to have an EPC

• EPC certificates offer guidance and support on how to improve the energy efficiency of a commercial building

Stricter new EPC regulations 2025

There are now stricter EPC regulations, like the fact that commercial buildings all need to have an EPC rating of E or above. So, this naturally means that leasing out a commercial building with an energy rating below E is prohibited. By 2027, the minimum energy rating for commercial buildings will be C, and by 2030, it will be B.  

But not only this, there is also now an updated assessment criteria that includes changes in the evaluation process and revised methodologies. There are now stricter benchmarks for building fabric, heating, ventilation, and cooling systems. Further to this, any fixed installations such as heaters, air conditioning systems, or mechanical ventilation systems will need to abide by higher efficiency standards.  

There is now also a greater emphasis on implementing sustainable energy methods. Because of this, there may also be more frequent assessments for commercial buildings. As a result of this, there will be an improved reporting system with more detailed documentation of energy usage, carbon emissions, and any improvements that have been made.  

All of these improvements are meant to provide a clearer picture of how well a property is performing with its energy and to drive accountability for energy efficiency upgrades.  

Renewal and compliance requirements

Under the new EPC regulations in 2025, all commercial buildings will need to have a minimum energy efficiency rating of ‘B’ by 2030. There is also an interim goal that commercial buildings will need to reach, which is that all commercial buildings have an energy efficiency rating of ‘C’ or above by 2027.  

But it is also worth mentioning that under current proposals, landlords must provide a valid EPC two years before the enforcement date for both targets. For instance, if an EPC rating of 'B' is required, a landlord must present this by 1st April 2028. Should the property fail to meet this requirement by then, the landlord will need to secure another EPC by 1st April 2030, demonstrating that it has achieved an EPC 'B' rating or the highest EPC along with a valid exemption.

Also, the new ECP regulations in 2025 consist of improved compliance requirements for commercial buildings. For starters, EPC certificates now have a shorter validity period - this has been reduced from 10 years to 5-7 years. This means that energy performance information remains current and reflects any changes or modifications made.  

Additional documentation and reporting requirements

There are also additional documents and reporting requirements that will need to be taken into consideration under the new EPC regulations 2025 for commercial properties. For example:  

• Detailed energy consumption data: Property owners might be required to submit comprehensive energy usage data, including historical trends and real-time monitoring information, to support the assessment.
  

• Carbon emissions reporting: Alongside energy performance data, a report detailing the building’s carbon emissions may be asked for, helping to align with broader environmental and sustainability targets.
  

• Evidence of upgrades or improvements: Documentation proving any energy efficiency improvements - such as invoices, installation certificates, or updated technical specifications - could be required. This supports a more accurate assessment of how recent upgrades have impacted the overall rating.
  

• Third-party verification: In some cases, additional verification from accredited assessors or independent experts might be necessary to confirm that the building meets the updated energy efficiency standards.
  

• Compliance statements: Property owners may need to include formal declarations or compliance statements indicating that the property adheres to the new minimum energy performance thresholds.  

These changes aim to provide a more dynamic and transparent picture of a building’s energy efficiency, ensuring that commercial properties not only meet current standards but are also encouraged to adopt further energy-saving measures. Property owners should consult the latest official guidelines and work closely with accredited assessors to ensure full compliance with the new requirements.

Cost and investment considerations with new EPC regulations 2025

So, if you need to make improvements to your property so that you meet energy efficiency rating requirements, you can expect to invest some money into the project. At first, this may seem like a lot of money, however, the financial benefits will become apparent soon after.  

Improvements that make your property more energy efficient will lead to lower energy bills, your property’s market value, and a reduced carbon footprint. Also, implementing these improvements will help you avoid any fines and penalties and will ensure a smoother transition.  

Preparing for the new EPC regulations in 2025 for commercial properties

There are a few steps you can take to make sure that you’re best prepared for the new EPC regulations in 2025. Follow these steps to make sure you’re in the best position possible:  

• Audit your property: Ensure that your property is assessed early on to establish a baseline for where it falls on the rating system.  

• Consult accredited assessors: Make sure that you choose the right professionals to help you navigate the new requirements.

• Plan upgrades: Identify critical improvements that can be made to your building, such as enhanced insulation, updated HVAC systems, or renewable energy installations, that can help meet new standards.

• Monitor regulatory updates: Keep abreast of any further changes or clarifications in the new EPC regulations for 2025.  

For more information on sustainable energy solutions, contact our team at Sustain Solar Commercial on 0333 880 0891 today!

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