commercial

Energy Performance Certificates must now be provided by Law when ever a commercial building of more than 50 square metres are constructed, modified, sold or let.

This regulation is part of the Energy Performance of Buildings Directive which requires all EU countries to establish minimum energy performance standards for buildings. According to the Government 50 percent of the UK’s energy consumption arises from the country’s 25 million buildings.

An EPC is intended to inform potential buyers or 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 a building

FAQ's

Q: When do I need an EPC?
A: When you start marketing for sale the leasehold or freehold of your commercial premises, or when you assign or grant a commercial lease.

Q: How much does a commercial EPC cost?
A: At the moment a 500sqft shop would cost around £450 + VAT and a 1,000 sqft shop would cost around £750 + VAT. Our costs are less than this !

Q:What’s the difference between a Residential EPC and a Commercial EPC?
A: A great deal. A commercial EPC involves a complete measurement survey of each zone within your building, measuring the u-value of your windows, the energy efficiency of your lighting systems, the efficiency of your heating, ventilation and air-conditioning systems.
A commercial EPC also lasts 10 years and is lodged with a publicly accessible database.

Q: What happens if I ignore the need for an EPC?
A: Trading Standards can fine you 12.5% of the rateable value of the land with a minimum fine of £500 and a maximum fine of £5,000. They can keep fining you until you get an EPC. The solicitors acting for a purchaser of your business or freehold will require you to get an EPC.

Q: I have been told that I don’t need an EPC. Is this right?
A: No. Virtually all commercial premises will need an EPC. If Trading Standards find that you don’t have one, you are liable to be fined.

The legal stuff

An Energy Performance Certificate is only required when a building is constructed, sold or rented out.

It is the responsibility of the person selling or renting a building to have a valid EPC to show to prospective buyers and tenants. The EPC must be given to the eventual buyer or tenant.

All commercial buildings now require an EPC on sale, rental or upon construction.

The certificate is valid for ten years, or until a newer EPC is prepared.

For a building to fall within the requirement for an EPC it must:

Have a roof and walls and use energy to condition the indoor climate (i.e has heating, air conditioning or mechanical ventilation) then you will require an EPC.

A building can either be the whole building or part of a building designed or altered to be used separately.

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 accommodation on offer.

Selling or letting a building as a whole
You can prepare an EPC for the whole building, even if that building has parts designed or altered to be used separately with separate heating systems.

Selling of letting part of building, where the building has a common heating system
If a building has a common heating system, then the seller or prospective landlord can prepare (or make available) an EPC for the whole building or for a part designed or altered to be used separately. The EPC will be based on the energy consumption of the building apportioned in relation to the area of the accommodation being offered.

Buildings with separate parts and separate heating systems
An EPC should be prepared (or made available) for each part of a building that is being offered separately for sale or let. The EPC should reflect the services in those part(s) being offered for sale or let and will include a portion of the energy consumption of any common areas that exist solely or mainly for access to the part.

Residential accommodation
Any separate residential accommodation that is self-contained will require its own EPC (using SAP or RdSAP as appropriate). Residential space that can only be accessed via commercial premises (i.e. a house with a shop in a downstairs room or a shop with accommodation where the access is through the shop) will be assessed with the commercial premises as a single building (where SBEM is more appropriate).

Modifications to a building
If a building is modified to have more or less parts that are designed or altered to be used separately and the modification includes the provision or extension of heating, hot water, air conditioning or mechanical ventilation then an EPC for the building must be provided on completion of the work.

Buildings which don't need an EPC
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 less than two 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

For more information or to make a booking.
Call our freephone 0800 825 0325
or email surveys@rapidepc.org

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