Where building services have been removed in an existing building the EPC rating may be poor and may not met the minimum EPC rating required in England & Wales. An agreement may be drawn up to let the building on a licence in the first instance and that the new tenant fits out the building to meet MEES before it is then leased on a long term lease. Legal advice should be sought
Region: England & Wales
Topic: Energy Certification in Non-Domestic Buildings
The EPC should reflect the property that is being sold or let.
Where the whole of a building is being let separately then an EPC could be provided that covers the space within the tenancy. An EPC for the common areas should also be produced.
Where a whole building is being sold with one main entrance and a common heating or air conditioning system, then a single EPC should be produced for the whole building.
Where a whole building is being sold, and the tenancy areas have their separate heating systems, then several EPCs could be produced to cover the whole building. An EPC will be required for the common areas. Action Plans(s) may also be required.
Updated: 12 Jan 2022
Where an EPC address for a building isn't listed or is listed incorrectly then the Energy Assessor is required to make a request. Where the property is in England or Wales this is almost by return however in Scotland this may take up to 5 working days.
The central Non-Domestic EPC database in Scotland was only set-up in 20xx and so an existing EPC may not be listed.
An EPC is valid for 10 years although if changes are made to the building then the rating will change. If improvements to the building envelope or building services are made then a new EPC should reflect the improvements and the EPC rating would be better. If relying on the EPC for a transaction it may be advantageous to renew the EPC.
Proposals have been made to reduce the life of an EPC to make EPCs more accurate and encourage more improvements to be made.
An EPC is required for a shell building where the expectation is that a unit will be conditioned. The following rules are required to be met when preparing an EPC for an existing building where the services have been removed. However, the detail needs to be established at a local level on a case by case basis.
No heating – use fanned direct electric resistance heating as per SBEM.
Other services – make as few assumptions as possible and only where necessary to make the calculation work in SBEM.
Any assumptions that must be made, which involve fixed services which are subject to minimum levels of energy efficiency in building regulations should default to the least onerous levels.
An EPC for a new build shell building
Where the building offered for sale or rental is a new building, the EPC will be provided as part of the building warrant process. For a shell building with incomplete services installation, the EPC will be based upon a notional services specification which meets building regulations for the proposed building type and use.
EPCs are required to enable potential buyers, tenants or building occupiers to consider the energy performance of a building. Certain transactions would not amount to a sale or let to a new owner or tenant and would therefore not require an EPC and these include.
- Lease renewals or extensions
- Compulsory purchase orders
- Lease surrenders.
This source of this information is The Energy Performance of Buildings (Scotland) Amendment (No.2) Regulations 2012. (SSI 2012no.208)
Regulation 5 Part 4. (4) Any reference in this regulation to the letting of a building or building unit does not include the renewal of an existing lease with the same tenant.
Regulation 5 within this document replaces regulation 5 of the 2008 Regulations to provide that an energy performance certificate is to be shown to a prospective new tenant or buyer and provided to an actual buyer or tenant.
The calculation rating system for EPC ratings of non-domestic buildings in England and Scotland is different and EPC grades should not be directly compared.
More information is available.
EPC recommendatrions are not mandatory although a building may not meet the minimum energy certification requirements.
By implementing some of the recommendations this may reduce running costs and increase the attractiveness of the property to prospective occupiers and/or investors. In England and Wales, and Scotland there are minimum EPC requirements.
Residential property rented out for the purpose of a holiday do not require an EPC. An EPC is required though when the letting period to the same person is for 12 weeks or more.
A holiday home operating as a business and subject to Non-Domestic rates may require an EPC.
A shell building for the purposes of building regulations and EPC production is not simply a building with no heating or lighting.
In the context of application for building warrant, a shell building is defined as a building where elements of the fixed building services are absent and further installation work will be required before the building can be occupied and used. A staged building warrant, covering both shell and subsequent fit out work, is not subject to the following process. Shell buildings are subject to the compliance check against the TER under the conditions specified in clause 6.1.10 of Section 6.
Guidance on provisions and details of the limiting standards for shell and fit out buildings are specified in clauses 6.2.3, 6.2.4, 6.2.5, and 6.2.6 of Section 6.
Assessment under standard 6.1 is required both for the shell building warrant and also for the subsequent fit-out works, provided a continuing requirement in this respect is placed upon the shell warrant. Regardless of whether or not a building warrant is required for fit-out work, this continuing requirement must be discharged before the building can be occupied (refer to clause 5.6 of the BSD Procedural Handbook).
Assumption when an EPC is Produced for a Shell building
Assessment of the fit-out work should be made using the category ‘other buildings’ under ‘S6 type of building’. Assessment of the shell building should show that the building, as completed, could meet standard 6.1. This is done by providing a completed service specification for each zone, identifying which services are to be installed as part to shell works and which are assumed to form part of a subsequent fit-out. Assumed (uninstalled) services should be defined at zone level by identifying whether the zone is a fit-out area (approved software tools must allow for this identification).
In Scotland, all domestic and non-domestic buildings are required to have an Energy Performance Certificate (EPC) displayed in marketing when they are available for sale or to lease.
The EPC provides information on the energy efficiency of the building and gives recommendations on how to improve its energy performance.
Whether it's a house, apartment, commercial building, or public building, if it's on the market for sale or rent, the seller or landlord must provide an EPC to potential buyers or tenants.
Public Buildings larger than 250 sq m
Some non-domestic buildings larger than 250 sq m require an EPC to be displayed where they are frequently visited by the public. These are referred to as public buildings and examples include colleges, community centrees, libraries, hospitals, local authority or central government offices accessible to the public.
Large buildings frequently visited by the public
Large buildings frequently visited by the public have certain defining characteristics:
- They possess a floor area exceeding 500 square metres.
- They attract public visitors on a weekly basis or more frequently.
- The public is granted either an express or implied license to enter these premises.
Examples of such buildings include supermarkets, banks, sports clubs, and shopping centers. If a building meets these criteria and has a valid Energy Performance Certificate (EPC), it must display it. However, if the building does not have an EPC, there is no obligation to obtain one unless the building is about to be sold or rented out.
The EPC should be visibly affixed to the building in a prominent location, such as the main entrance lobby or reception area, where it can be easily seen by the public.
In Scotland, Display Energy Certificates (DECs) are not considered valid for meeting EPBD (Energy Performance of Buildings Directive) legislation, and only EPCs based on an 'asset rating' (using SBEM or DSM software) are used.
Responsibility for producing and displaying the EPC lies with the building owner. However, building occupiers also have a duty to ensure the EPC remains visible.
Failure to display the EPC can result in a penalty charge notice issued by the Local Authority, the enforcement authority.
EPCs are typically valid for ten years. If major works are undertaken during this period, the building owner may opt to provide a new certificate, but it's not mandatory. For public buildings, the EPC must be renewed immediately after the ten-year period elapses. However, for other large buildings visited by the public, a new EPC is only required when the building is about to be marketed for sale or rental after the previous EPC's expiry.
The Scottish Government, like other UK governments, is keen on promoting energy efficiency and reducing carbon emissions from buildings, which are significant contributors to the overall energy consumption in the country. EPCs help raise awareness about a building's energy performance and encourage property owners to invest in energy-saving measures.