What are the Minimum Energy Efficiency Standards (MEES) for Commercial Buildings?
Minimum energy efficiency standards have been in place for privately rented domestic and non-domestic buildings for some time now.
The new rules introduced by the government came into effect in April 2018, stipulating that non-domestic privately rented properties must have an EPC rating of E or above. It is now unlawful to rent out a building that has a rating of F or G unless they have a valid exemption in place.
This law has been implemented due to the large proportion of emissions emitted from the built space. Other laws have been brought into effect to ensure new builds are designed and built to meet new energy efficiency standards. But given that current building stock makes up the bulk of our cities, it is essential that they are decarbonised, and penalties are enforced for not complying.
“The energy we use for heating and powering our non-domestic buildings is responsible for around 12% of the UK’s emissions. Around 60% of today’s non-domestic buildings will still exist in 2050, representing around 40-45% of the total floor space” (Gov 2017).
“The government estimates that 18% of commercial properties hold the lowest EPC ratings of F or G” (Burges Salmon 2017).
Increasing the energy efficiency of non-domestic building stock will aid with seasonal peaks in energy demand and increase energy security. Introducing more renewables will mean buildings have less reliance on fossil fuels creating circular economy principles. The government state that increased demand for green initiatives will support growth and create job opportunities within the sector. It is also hoped that these measures will generate more innovative ideas, meeting the need for carbon reduction in a creative and cost-effective manner.
What does this mean for landlords?
This can be viewed as a positive opportunity to upgrade building stock, enticing new, higher-paying tenants or retaining current tenants and securing future revenue. There is, of course, a level of investment that will vary depending on your portfolio’s current EPC rating, but ultimately it will future-proof your assets and increase their value.
It is also recommended that landlords review the criteria for each rating, as although a minimum level of E is the current law, this may change in the future and investment to complete an upgrade will be less if it is completed in fewer stages.
The government state that landlords cannot rent out a vacant building with an EPC rating of F or G unless it is improved to at least E or there is a valid exemption in place before a new tenancy begins.
If a building is currently being rented and it falls below these standards, work must begin immediately to improve the energy efficiency rating to E or above (or you must register for an exemption if applicable).
What is the penalty for not complying?
“The penalty for renting out a property for a period of fewer than three months in breach of the MEES Regulations will be equivalent to 10% of the property’s rateable value, subject to a minimum penalty of £5,000 and a maximum of £50,000. After three months, the penalty rises to 20% of the rateable value, with a minimum penalty of £10,000 and a maximum of £150,000” (Burges Salmon 2017).
How can amBX assist?
We work with a variety of partners in the built space to improve the energy efficiency of buildings. Our software, SmartCore, reduces carbon and energy waste through lighting systems, providing owners and managers with greater control and insight over their buildings. SmartCore can also be used to assist system integrators; the protocol-agnostic solution aggregates data and sends it to a single source, speeding up building interoperability and allowing informed changes to be made and monitored.
SmartCore is also cloud agnostic and offers remote management. Custom user interfaces can also be created to improve insight for managers, and our vast lighting logic allows sophisticated experiences to be created simply.
Our software intelligence is often embedded within wider workspace solutions. We believe that partnership and collaboration are key to achieving net zero success in the built space. The MEES create a positive benchmark for buildings to conform to, but we aim to make the refurbishment process easy and cost-effective, leading to higher-performing building stock and green buildings that are rated as highly energy efficient as opposed to the bare minimum.