What is an Energy Performance Certificate?
An EPC (Energy Performance Certificate) is a document which gives your property an energy efficiency rating from A (very efficient) to G (very inefficient). There are domestic EPCs and commercial EPCs.
They base the figures on the typical output of a household or business using the property, so they aren’t tailored to your circumstances; this does mean that you may have reduced or increased costs depending on usage. An EPC is needed when a property is built, sold or rented and, in Scotland, must be displayed somewhere in the property (typically, it is next to the boiler or inside the metre cupboard). An EPC is valid for ten years from the date of issue.
Why Are They Important?
An EPC is important because it provides critical information to potential buyers and tenants of a domestic or commercial property regarding bills and improvements they could make to save money. It can be a deal breaker, especially considering the current spike in energy bill costs. Its assessment tells property owners and potential buyers or tenants:
- Information about the energy efficiency of the property, including CO2 emissions.
- The costs of heating or lighting the property.
- Recommendations about how to reduce energy use and save money.
- What the energy rating could be if they made improvements.
Are They Required by Law?
Yes, they are a legal requirement when you sell or let residential property; updating it is essential when it runs out. If you owned your property before 2008, it is worth checking if you have one, as they weren’t a legal requirement. Some properties are exempt. These include:
- Places of worship
- Temporary buildings that will be used for less than two years
- Stand-alone buildings with a total floor space of 50 square metres
- Industrial sites, workshops and non-residential agricultural buildings
- Buildings due to be demolished
- Holiday accommodation that’s rented for less than four months a year
- Listed buildings
- Residential buildings intended for use less than four months a year
Find the complete list and more information on the UK Government website. Without an EPC, you can receive a fine between £200 to £5,000 from your Local Authority Building Control Department.
What Does the Survey Involve?
An EPC certificate requires an accredited assessor to survey your property. It is not a job you can do yourself; for more information, the Government Website has a list of professional bodies that you can use and are accredited.
Prices vary from £60 to £120, so it is worth comparing quotes before settling on the assessor you’d like to use. We offer this service for domestic and commercial properties at Nexus Energy Solutions. During the visit, an assessor will use the following information to generate your EPC:
- The size of the building
- Your lighting
- Cavity wall and loft insulation
- Hot water and central heating systems
- The energy efficiency of the windows
How Does an EPC Affect Your Property?
Does the Rating Increase the Property Value?
Having an EPC alone does not increase your energy rating. However, the improvements and recommendations suggested in the EPC can add up to 20% to the value of your home or property.
The government’s goal is that all domestic and commercial property has an energy efficiency rating above C as part of their strategy to achieve Net Zero in 2050.
Is an EPC Required to Sell a Property?
Yes, an EPC is a legal requirement to sell or let a property and must be commissioned before the property is on the market. The potential buyer or tenant must be shown a valid EPC as part of the process.
Can You Market a Property With an Expired Certificate?
No, you must have commissioned an EPC for potential buyers and tenants before your property is on the market.
Can You Sell a Property Privately Without an EPC?
As before, all properties must have an EPC shared with the potential buyer or tenant as part of the process.
How Long is an EPC Valid for When Selling a House?
An EPC is valid for ten years from the point of issue.
What is the Minimum Rating to Required to Sell?
Since 2018, for new tenants, and 2020, for existing tenants, the domestic energy efficiency minimum requirement has been a band E. There is no current minimum EPC rating for selling a house or commercial property.
Next year from April 1st 2023, there will be some changes to the MEES rules. The minimum EPC rating is to be raised to C for new tenancies and, from April 1st 2025, for existing tenancies. Additionally, The government will raise the minimum EPC rating for commercial property to E or above for both new and existing commercial lettings.
Explore Our EPC Solutions
At Nexus Energy Solutions, we offer a broad range of energy efficiency services, including generating a domestic and commercial EPC and a Display Energy Certificate. Our expert, accredited assessors are all professionally qualified to carry out an EPC survey and are regularly audited to ensure they are providing the highest standard of service in line with our and the Government’s expectations.
If you’d like further information or to ask any questions, our personable and knowledgeable team of energy advisors are there to help. Get in touch with us today to find out more.