Energy Performance Certificate
An Energy Performance Certificate (EPC) contains information about how energy is used in a home or a business premises, along with details of how much the energy used actually costs.
An EPC is a legal requirement in certain situations and a good idea for pretty much everybody as it contains a 'recommendation report' with suggestions on how you can reduce the amount you spend on energy.
When you are required to get an EPC
An EPC is required by law when a building is constructed, sold or put up for rent. If you are a landlord or homeowner and need to provide an EPC, you'll need to contact an accredited domestic energy assessor. They will carry out the assessment and produce the certificate.
Domestic energy assessors may be employed by a company (such as an estate agent or energy company) or be self-employed. You should always check that your domestic energy assessor belongs to an accreditation scheme.
You can use the energy performance certificate register website to search for an accredited domestic energy assessor. You can also find accredited domestic energy assessors by searching online or by looking in the phone book.
EPCs last for 10 years and the fee charged by the assessor will be at the market rate. The size and location of your property will be determining factors.
When you'll be given an EPC
By law you should receive an EPC in the following cases:
- When you are considering buying a home, you should be provided with an EPC, free of charge. This applies to new homes and existing stock.
- If you are considering renting a property, you should get an EPC from the landlord, free of charge. That said, you don't need an EPC when you are thinking of just renting a room with shared facilities rather than renting the whole property.
In all cases the intention is to allow you to compare the energy efficiency and costs associated with the property.
You can apply for and receive an EPC from an energy assessor simply because you want to know how energy efficient your home is, and make improvements suggested by the report.
You can look at the EPCs of other properties on the EPC register website. This enables you to compare your home's energy performance with that of similar homes, free of charge. If you don't want other people to be able to see your EPC on the EPC register, you can opt out.
Do you have business premises?
Owners of all commercial buildings also have to provide an EPC when they sell or let commercial premises.
How does an EPC work?
The EPC rates a building's performance in terms of:
- Energy use per square metre of floor area,
- Energy efficiency based on fuel costs
- Environmental impact based on carbon dioxide (CO2) emissions
This provides an energy efficiency rating and an environmental impact (CO2) rating. There are seven bands for both of these ratings, from A to G.
The energy efficiency rating is colour-coded from green to red, with the green end of the scale indicating that the home is very energy efficient, with lower running costs, and the red end of the scale indicating it is not energy efficient and has higher running costs.
There is also a numerical rating from 1 - 100. The bigger the number the more energy efficient the home is and the lower the fuel bills will be.
The environmental impact rating is colour-coded from blue to grey, signifying 'very environmentally friendly - lower CO2 emissions' at the blue end of the scale through to 'not environmentally friendly - higher CO2 emissions' at the grey end.
Again, there is a numerical rating, from 1 - 100, and the bigger the number, the less impact the house has on the environment.
Estimated fuel costs
The EPC assessor uses standardised assumptions about the home's occupancy, heating patterns and geographical location to construct a table that indicates how much it will cost to provide lighting, heating and hot water to this dwelling.
This table sets out the current energy use alongside the potential use if a range of recommendations are followed. The same is done for carbon dioxide emissions.
Costs are listed for lighting, heating and hot water - again, there is a figure for the current and potential cost, showing how much could be saved in cash terms.
If you are scrutinising an EPC, always check the date the certificate was issued, because fuel prices can increase over time.
Detailed performance summary
Having provided details of actual and potential energy use and cost outlay, the EPC provides a summary of the home's energy performance-related features. These include walls, roof, floor, windows, main heating, heating controls, secondary heating (if applicable), hot water and lighting.
Each element is assessed against the following scale:
- Very poor
- Very good.
So, for example, your wall might be described as: “Cavity wall, as built (no insulation)”. It would then probably be described as 'poor' for its performance in terms of both energy efficiency and environmental impact.
A pitched roof with 250mm loft insulation, however, might warrant being described as 'good'.
If there was low energy lighting in 75% of fixed outlets, this would rank as 'very good' by both measures.
After taking all the individual ratings into account, the assessor would decide the home's overall energy efficiency and environmental impact ratings as shown in the colour-coded charts.
For a full example of an energy performance certificate, visit the DirectGov website or click here.
The EPC provides a list of things the property owner can do to improve energy efficiency. It outlines the typical savings per year and the potential performance ratings after the improvements have been made. The improvements are divided into 'lower cost measures' of up to £500 and 'higher cost measures' for larger amounts.
Medium-cost measures such as fitting cavity wall insulation might achieve a typical annual saving of over £400, while installing low-energy lighting in all fixed outlets, a relatively low-cost measure, would deliver a saving of over £11.
High-cost measures might include fitting a hot water cylinder thermostat or replacing an old boiler with a more efficient model.
Further suggestions - for example, fitting double glazing and solar heating panels - are included for those aiming for the highest possible standards for their home.
Explanatory text is provided on each measure to help the reader decide what is involved in taking the suggested action. This includes information on which improvements may be eligible for funding through the government's Green Deal (see below).
There is no requirement to act on the recommendations in the report. However, doing so could make the property more attractive for sale or rent by making it more energy efficient.
EPC-holders can also go online to the EPC Adviser, enter their reference number off the certificate and see how much could be saved in terms of money and CO2 emissions.
What is the Green Deal?
The Green Deal was launched by the government in October 2011 to help people make their homes warmer, more energy efficient and cheaper to run.
Under the scheme you choose which eligible energy saving improvements you want to make and pay for the improvements over time through your electricity bill, at a level no greater than the estimated savings to energy bills.
If you move home, the Green Deal charge stays with the property and the repayments pass to the new bill payer.
You can apply whether you're a tenant or an owner and you might be eligible for extra help if your household gets income-related benefits. There's more information at the Department of Energy and Climate Change (DECC) website.
*51% consumers, MoneySuperMarket data, December 2014