More Information and FAQs
What is an Energy Performance Certificate?
An Energy Performance Certificate looks similar to the certificates now provided in a residential HIPs pack and on domestic appliances such as refrigerators and washing machines. Shown on a scale from A (more efficient) to G (less efficient), the energy rating tells potential buyers and tenants about the energy performance of a building so they can consider energy efficiency as part of their investment or business decision to buy or occupy that building compared to similar properties. Each rating is based on the performance of the building itself and its services (such as heating and lighting), rather than the energy using equipment and appliances within it. All EPCs come with a Recommendation Report which includes advice and suggestions on improvements that could be made to save money and energy.
How do I know whether my building requires an Energy Performance Certificate?
If you have a building (with a roof and walls) that uses energy to condition the indoor climate (i.e. has heating, air conditioning or mechanical ventilation) then you will require an EPC when it is sold or let. Parts of a building designed or altered to be used as separate accommodation may require their own EPC. The sale and let of commercial buildings can be complex with floors let to different tenants, and with a mixture of retail, office and residential accommodation. The EPC required for any space you offer for sale or let must reflect the energy performance of the accommodation on offer.
Multi-tenanted buildings are subject to certification according to rules depending on the configuration of the heating and conditioning systems. Generally in cases where there is a common heating system they can either be assessed as a whole, or independently, whereas buildings with units having independent heating systems in each unit will have to be provided with separate EPC's.
Should you be unsure, Carbon Property can provide advice on whether or not an EPC is required.
When is an EPC not required?
EPCs are not required before the construction of a building is completed. Nor are they required on the sale, rent or construction of:
• places of worship;
• temporary buildings with a planned time of use of less than 2 years;
• stand alone buildings with a total useful floor area of less than 50m2 that are not dwellings;
• industrial sites, workshops and non-residential agricultural buildings with low energy demand.
As the purpose of EPCs is to enable potential buyers or tenants to consider energy performance of a building as part of their investment, transactions which do not involve a new owner or tenant may not require an EPC. Examples might include:
• lease renewals or extensions to existing tenants
• compulsory purchase orders
• lease surrenders.
When does an EPC need to be made available?
An EPC should be provided to a prospective buyer or tenant at the earliest opportunity and no later than when a viewing is conducted or when written information is provided about the building or in any event before entering into a contract to sell or let.
What happens if I do not have an Energy Performance Certificate?
The penalty for failing to make an EPC available to any prospective buyer or tenant when selling or letting non-dwellings is fixed and is enforceable by local Trading Standards Officers. In most cases this is 12.5% of the rateable value of the building, subject to a minimum penalty of £500 and a maximum of £5,000. There is a default penalty of £750 where the formula cannot be applied. The EPC will still be required in any event.
Who is responsible for instructing the EPC?
It is the seller or landlord’s responsibility for ensuring there is an EPC available for the accommodation being sold or let even if an agent or another service organisation is acting on their behalf. When a building is constructed, it is the responsibility of the person carrying out the construction when the building is physically complete to give an EPC and Recommendation Report to the owner of the building and to notify Building Control that this has been done.
Who can produce Commercial EPCs?
Only qualified energy assessors may carry out energy assessments and issue EPCs. An energy assessor must also be a member of a Government approved accreditation scheme. These schemes are responsible for registering EPCs on a national database and for ensuring the quality of EPCs produced.
Why are EPCs required?
Commercial properties currently account for nearly 20% of the UK's carbon emissions, contributing to global climate change.
The way in which we light, heat and use buildings all contribute to the overall carbon emissions and so even comparatively minor improvements to the energy performance and the way we use our buildings could have a significant effect in reducing energy consumption, thus protecting the environment and minimising our energy bills!
EPCs form part of a program of work that will make a difference to the carbon emissions from buildings by alerting owners and tenants to the potential energy losses and encouraging Vendors to improve the energy performance of buildings before selling or leasing.
When do EPCs become a requirement?
EPCs are required now for all non-dwellings over 50m².
What happens if I am not happy with the energy assessment or the Energy Performance Certificate?
If you feel that we haven’t lived up to your expectations, we’d like to know so we can put things right for you. If you are concerned about any aspect of the energy assessment or the quality or accuracy of the EPC, please do not hesitate to contact Carbon Property in the first instance. If the matter is not resolved we can then provide details of the accreditation scheme so they may be contacted directly (these contact details will also be on your EPC).
What is a Recommendation Report?
A Recommendation Report is produced alongside the EPC and outlines what measures could be taken to improve the energy performance of the building. These recommendations are provided in four categories: short term payback, medium term payback, long term payback and other recommendations (based on the energy assessor’s knowledge).
How long are EPCs valid for?
An EPC for a commercial building is valid for 10 years, or until a newer EPC is prepared. During this period the EPC may be made available to buyers or new tenants. A new EPC will be required on sale or let should alterations be made to the energy performance of the building. A Recommendation Report is valid for 7 years.
(Extracts taken from 'HM Government: EPCs and Non-Dwellings - A guide for building owners, landlords and tenants')
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