Energy performance certificate for business

An Energy Performance Certificate for business rates how efficiently a business uses energy. The certificate uses an A to G grading format to indicate the energy efficiency of the business in question. The most efficient will be graded ‘A’ while the least will receive a grade ‘G’. 

In most cases, having an Energy Performance Certificate (EPC) is a legal requirement, but it’s a business owner’s responsibility to apply for and pay for one. Unless you are exempt from needing one, you may face a penalty charge if you don’t comply. 

Nearly all commercial buildings will need an Energy Performance Certificate (EPC). The government requirements state that you need one when: 

• you rent out or sell your premises 
• a building under construction is completed 
• changes are made to the parts of the building for separate occupation, involving any changes or additions to heating, air and ventilation systems 

What is a Commercial EPC and who needs one? 

A commercial EPC is necessary for most non-residential buildings in the UK. These include shops, offices, restaurants, warehouses, industrial sites, and more. 

You are required to have an energy performance certificate for commercial property in the following scenarios: 

• Selling or renting out your premises 
• Completing the construction of a new building 
• Altering spaces within a building to create separate units, especially if it involves changes to heating, ventilation, or air-conditioning systems 

However, certain properties are exempt, including listed buildings, places of worship, and temporary structures. 

How to work out whether you have a simple or a complex building 

The process for getting a commercial energy performance certificate varies depending on the complexity of the building: 

• Simple Buildings: Properties with straightforward energy features, such as small heating systems or natural ventilation. These are typically assessed by Level 3 or Level 4 energy assessors. 
• Complex Buildings: Properties with advanced features like HVAC systems. These require assessment by Level 5 energy assessors. 

To find an assessor qualified to evaluate your property, visit the Commercial EPC Register online. 

How to display a Commercial EPC 

In certain cases, businesses must display their energy performance certificate prominently: 

• The building’s total floor area exceeds 500 square meters 
• The property is frequently accessed by the public 
• An EPC has already been issued for the property’s sale, rental, or construction 

Failure to display the EPC can result in fines ranging from £500 to £5,000, depending on the building's rateable value. 

What does a Commercial Energy Performance Certificate include? 

A commercial EPC provides a detailed assessment of the property’s energy efficiency, including: 

• Energy Rating: An A to G grade that summarises efficiency 
• Recommendations: Suggestions to improve energy performance, such as installing insulation or upgrading heating systems 
• Estimated Savings: Potential cost and carbon savings if suggested measures are implemented 

What are the penalties for not having a Commercial EPC? 

Failing to provide a valid EPC for commercial property can result in financial penalties. The fine ranges from £500 to £5,000 and depends on the building’s rateable value. Additionally, you may be required to rectify the issue promptly. 

Can you appeal a penalty? 

If you believe you have been incorrectly fined, you can appeal the penalty notice. Start by following the instructions on the penalty charge document to request a review. If the penalty is upheld, you may escalate the appeal to a county court (or a sheriff court in Scotland). 

Are there any exemptions from Commercial EPC requirements? 

Not all properties require an energy performance certificate for commercial property. Exemptions include: 

• Detached buildings with a floor area under 50 square meters 
• Listed buildings where compliance would alter their character 
• Temporary structures planned to be used for less than two years 
• Places of worship 
• Industrial and agricultural buildings with low energy usage 
• Buildings slated for demolition with approved planning permission 

If your property qualifies for an exemption, ensure you have documentation to support your claim in case of disputes. 

What are the benefits of having a Commercial Energy Performance Certificate? 

There are several plus points for having a valid commercial EPC certificate, including: 

• Legal Compliance: Avoid penalties and maintain compliance with government regulations 
• Improved Efficiency: Gain insights into energy-saving measures that can reduce operating costs 
• Better Marketability: Properties with high EPC ratings attract more buyers or tenants 
• Contributing to Sustainability: Lowering energy consumption reduces your carbon footprint, aligning your business with environmental goals 

How to get an Energy Performance Certificate for your business 

Here’s how to get a commercial EPC: 

• Identify the type of assessor needed. Use the Commercial EPC Register to find a qualified professional 
• Book an assessment. The assessor will visit your property, review its features, and calculate the energy rating 
• Get your certificate. After the assessment, you’ll receive the EPC with your property’s energy efficiency grade and improvement recommendations 

If you rent out any type of business premises, check out our commercial property landlord energy advice page.  

How long is an EPC Valid? 

A commercial energy performance certificate is valid for 10 years. However, if significant changes are made to the building’s energy systems or layout, a new EPC may be required. 

How to improve the energy rating at your business premises

If your property has a low energy rating, putting in place the energy efficiency recommendations in your commercial EPC can help: 

• Install insulation: Upgrade wall, roof, or floor insulation to reduce heat loss 
• Upgrade heating systems: Replace outdated boilers or install energy-efficient alternatives 
• Switch to LED lighting: Save energy with LED lighting instead of traditional bulbs 
• Invest in renewable energy: Consider solar panels or other renewable energy sources to generate power 

How to sort your next business energy contract 

Putting energy-saving measures in place and improving energy efficiency at your business is one way to save money. But if your existing energy contract is up for renewal or you’ve never switched, then sorting a new fixed-rate deal is another way to take control of your bills. 

If you're ready to switch and save on your business energy bills, call the Bionic business energy switching team now on 0800 140 4667.