Commercial EPC Regulations for UK Landlords

Written by Billy Robertson, Commercial Manager

Commercial EPC regulations are changing, and if you’re a commercial landlord, now is the time to start planning.

The Government has confirmed proposals to strengthen energy efficiency requirements for larger privately rented commercial properties in England and Wales. Although the proposed EPC C milestone for 2027 will no longer go ahead, many buildings over 1,000 square metres are expected to require a minimum EPC rating of B by 2031, where improvements are cost-effective.

Planning ahead gives landlords more flexibility to spread the cost of improvements, protect the value of their properties and make them more attractive to existing and prospective tenants.

While measures such as insulation, windows and lighting can improve energy performance, many commercial properties will struggle to achieve an EPC B through efficiency upgrades alone. Solar PV is one of the quickest and most effective ways to improve an EPC rating while reducing energy costs.

In this guide, we’ll explain the proposed commercial EPC regulations, what they mean for landlords, and how solar can help prepare your property for the future.

 

How the New Commercial EPC Regulations Affect Landlords

The proposed changes to the Minimum Energy Efficiency Standards (MEES) form part of wider commercial EPC regulations for privately rented buildings in England and Wales.

The Government has confirmed its intention to introduce the following proposals:

• From 2031, privately rented commercial buildings over 1,000 square metres will be expected to achieve a minimum EPC rating of B, where landlords can make improvements cost-effectively.
• The current proposals keep buildings below 1,000 square metres at the minimum EPC E standard.
• The Government has decided not to introduce the previously proposed interim EPC C requirement for 2027, giving landlords and tenants more time to improve their buildings.
• Existing flexibility measures, including the seven-year payback test and exemptions, will remain in place to ensure only practical, affordable and cost-effective improvements are required.

You can read more about the proposed changes and Government guidance using the official resources.

 

Why Solar Makes Sense Under the New Commercial EPC Regulations

One of the biggest challenges for commercial landlords is improving an older building’s energy performance without undertaking expensive refurbishment projects.

Solar PV is one of the most effective ways to improve a commercial building’s energy performance while reducing operating costs, making it an ideal solution for landlords preparing for future EPC requirements.

Benefits include:

• Reduced energy costs
• Revenue from exporting surplus electricity
• Increased property value
• Improved tenant retention
• Stronger ESG and sustainability credentials
• Improved commercial EPC ratings

These benefits make commercial properties more attractive to both existing and prospective tenants. In many cases, tenants are willing to contribute towards the investment because lower operating costs benefit them just as much as improved asset value benefits the landlord.

For many commercial landlords, solar is one of the most effective ways of meeting the new commercial EPC regulations while generating long-term savings.

 

Two Ways to Fund a Commercial Solar Installation

Installing solar is more affordable than many landlords realise.

Capital Investment (CAPEX)

The traditional approach is purchasing the system outright. Landlords can fund the system directly, use available grants or share the investment with tenants where appropriate. Owning the system also means retaining all of the long-term financial benefits.

Solar Power Purchase Agreement (PPA)

A Solar Power Purchase Agreement (PPA) removes the need for a large upfront investment.

Instead, you agree to purchase the electricity generated by the solar installation at a fixed, pre-agreed rate. Your renewable energy partner covers the cost of the design, installation and ongoing maintenance, while you or your tenants simply purchase the clean electricity the system generates.

For many landlords, a Solar Power Purchase Agreement is one of the quickest, simplest and most cost-effective ways of improving EPC ratings while preparing for the new commercial EPC regulations.

 

Helping Commercial Landlords Prepare for EPC Changes

At Kembla, we’ve worked with commercial landlords across a range of sectors to improve the energy performance of their buildings through tailored solar PV and battery storage solutions.

Our experience spans offices, industrial facilities, manufacturing sites, schools and multi-tenanted commercial buildings, giving us an understanding of the different challenges each property presents.

Every property is different, which is why we take the time to understand your building, your tenants and your long-term objectives before recommending the most suitable approach. Whether you’re looking to improve your EPC rating, reduce operating costs or future-proof your property portfolio, we’ll design a solution that works for you.

From fully funded Solar Power Purchase Agreements (PPAs) to outright ownership, our team can guide you through every stage of the process, from initial feasibility and design through to installation, monitoring and ongoing maintenance.

 

Get an Instant Quote for Your Commercial Property

While the proposed commercial EPC regulations may still be several years away, planning ahead gives landlords more flexibility, more funding options and more time to implement the right solution.

Whether you want to purchase a solar system outright or explore a fully funded Solar Power Purchase Agreement, our team can help you find the most cost-effective solution for your property and support your journey towards a higher EPC rating.

Speak to our specialists today:

Midlands: 01543 713026

South: 02394 005478

Or click “Get a Quote” below for an instant estimate on your commercial property.

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