Should We Really Understand Non-Domestic Energy Performance Contractors?

 Have you ever sat down to unearth tips to do with Non-Domestic Energy Performance Contractors just to find yourself staring google eyed at your computer screen? I know that I have.

EPCs should not be taken too seriously when you are buying. The energy assessment doesn’t take into account how many people live in the property and assessors don’t have access to energy bills. If an EPC is not available for a property within 28 days of it being put on the market for sale or rental, the property must be withdrawn or the owner is in breach of the law. If this occurs, Trading Standards officers can serve a penalty notice to the owner of the property. The fine for domestic properties is £200. For non-domestic buildings, the fine can be as high as £5,000 — the exact amount depends on the rateable value of the property. If you’re a homeowner who’s selling their home, you will need an EPC and you should get a copy of this within seven days of your home going on the market. They became a legal requirement in England in 2008 and you could get a fine of up to £5,000 if you don’t get one within seven days of your home going up for sale. EPCs help you maximise the energy-efficiency of your home, which is better for your energy bills, and for living more sustainably. It’s also crucial to have one if you’re planning to sell or rent your property. Many would-be buyers and renters use EPC ratings to see how much their energy bills could cost in their new home. Energy Performance Certificates (EPC) are official documents that illustrates the energy efficiency of domestic and commercial properties. These EPCs are issued by qualified accredited energy assessors after an energy assessment of the building and include information on the fabric of the building, lighting, heating, cooling and ventilation systems. EPCs, known also as Energy Performance Certificates , are detailed reports into the energy efficiency of a property or building. EPCs are divided into two further subcategories, Domestic and Non-Domestic. Domestic, or Residential EPCs, illustrate the efficiency rating of privately owned houses and apartments. Non-Domestic, or Commercial EPCs, provide ratings for buildings such as offices, restaurants or retail shops.



From April 2023, new legislation will come into force where it will be an offence to let a property which does not achieve a minimum 'E' efficiency standard, we look at the possible impact for landlords in England and Wales. The Energy Performance of Buildings (England and Wales) Regulations 2012 require an Energy Performance Certificate (EPC) is procured when a property is sold, let or refurbished. The cost of a Commercial Energy Performance Certificate will depend on the building being assessed. There’s no fixed fee for a Commercial Energy Performance Certificate, it depends on a number of factors including the properties size, type, use and location. Since 1st October 2008, all non-domestic buildings on construction, sale and rent have required a Non-Domestic Energy Performance Certificate and a Recommendation Report (RR). It is estimated that NDEPCs will be required for approximately 220,000 buildings (Non-dwellings) per annum, which includes approximately 15,000 newly constructed buildings. These buildings will require trained energy assessors to understand onsite requirements as well as the design based assessment techniques. Landlords are required by law to ensure that their properties meet the required EPC rating. Currently, all commercial property must hold an EPC rating of band 'E' or better prior to any new leases or renewals being granted. From 1 April 2023 this will be extended to all rented commercial properties. This will include properties where the leases are mid term. There are multiple approaches to facilitating a epc commercial property in the workplace.

Efficient Technology

An EPC survey is non-invasive, and a visual inspection is all that is required. You can ask the assessor how long he expects to be as the time varies between properties. On average an energy performance survey takes around 45-60 minutes to complete. The calculation for a commercial EPC is much more in-depth than that of a domestic EPC. This is because, typically, the commercial sector has more complex systems and consumes more energy. SBEM Calculations are used to generate a commercial EPC, and they take into account all of the factors mentioned above. An EPC includes a breakdown of a property’s energy performance. If your property is highly efficient you may spend less money on heating bills. As the better the rating, the lower your energy bills are likely to be. Net Zero is a global imperative. To reach Net Zero and limit global warming, governments, public sector bodies, corporate organisations, financial services, regions and cities must focus on delivering ambitious climate action plans. An EPC is required by UK law every time a property is sold or rented. There are some exceptions to this with listed or condemned buildings, but even with these types of properties, most solicitors will still require the EPC paperwork. You may be asking yourself how does a commercial epc fit into all of this?

EPCs come with a detailed recommendation report outlining potential areas that would help reduce the amount of energy you use, thus lessoning your carbon dioxide emissions. There is no formal requirement to improve the energy efficiency of a sub-standard property before a sale (although an EPC will be necessary as part of the sale process). However, MEES must be considered where a sub-standard investment property is being purchased, as the property owner or landlord will not be able to grant new leases without raising the property's energy efficiency to an acceptable level. A domestic EPC gives your home an energy efficiency rating of between A and G, with A being the most energy efficient that is possible and G being very poor. Having a good energy efficiency rating can be good for attracting buyers or tenants to your home as it means they will have reduced fuel costs in the future. If you believe you have been unfairly penalised for not having an EPC, you have the option to appeal and ask for a review. You should find details on how to go about this on your penalty charge notice. The penalty for failing to make an EPC available to any prospective buyer or tenant when selling or letting non-dwellings is fixed, in most cases, at 12.5% of the rateable value of the building, subject to a minimum penalty of £500 and a maximum of £5,000. There is a default penalty of £750 where the formula cannot be applied. A formula is used as the costs of producing an EPC for nondwellings are expected to vary according to the size, complexity and use of the building. The EPC will still be required. An understanding of the challenges met by non domestic epc register can enhance the value of a project.

Recommendations

From 2018 it will be necessary to meet the Minimum Energy Performance Standard which is widely expected to be an EPC “E” rating. It is possible that properties with an “F” or “G” rating will be unable to be sold or rented after April 2018 unless work is undertaken to improve their energy performance. There continues to be some uncertainty regarding implementation of this legislation, but in the meantime many large scale property owners are investing millions of pounds to ensure that their buildings can be sold or let after the deadline date. An EPC is important to landlords and prospective buyers/tenants as they show how energy efficient a property is. This can be a key deal breaker for prospective buyers/tenants, as if the property has a low rating, the prospective buyer/tenant will know that energy bills for that property could be high. Without a valid EPC, you could be fined up to £5,000. Areas examined in a commercial EPC assessment include the type of building the property is, the number of floors, composition, size and age of the building. In addition, our team will determine which heating, cooling and ventilation systems are installed and are operational in the building. The assessor will check if there are any energy efficiency devices already installed. Commercial EPC assessors are accredited to carry out EPCs at level 3, 4 or 5, which correlate to the complexity of the building services. Level 3 is simple, single units and Level 5 have very complex building services. A typical multi-let office is Level 4. Level 3 assessors should not assess a complex Level 5 building, but a Level 5 assessor can assess a Level 3 building. The assessor can only assess at the level they are registered, which is stated on the EPC. If you do not have a valid Commercial EPC it can be an inconvenience for both owners and property agents. A shared responsibility exists between agent and commercial landlord to make sure that the property is legal to market which includes having a valid Commercial EPC within 7 days of marketing. Should one not be available, a reduction in time from the original 28-day grace period that was in place before April 2012 legislation came into effect with more stringent criteria regarding EPC law. Can a mees regulations solve the problems that are inherent in this situation?

If you need an EPC, contact a member of an 'approved organisation' (AO). These organisations have been chosen as their members have the skills and expertise needed to produce an EPC. They can make suitable recommendations for improving the building's energy efficiency. There are various ways to improve your commercial EPC rating, and to lower the cost of commissioning the report. For example, by ensuring that the EPC assessor is able to get easy access to all the parts of the building to be inspected. Another example to improve your commercial EPC rating would be to remove any portable heaters from your commercial property, as this could be seen as your property’s main heat source and would be considered to be an inefficient way of heating the premises. An EPC will assess the operational efficiency of the system it will not comment on the safety aspects or maintenance of the building services nor will the assessment confirm that the installed system is fit for purpose. You will need an EPC whenever you are selling, renting or building a home for sale. You have to have a valid Energy Performance Certificate before you market your property to either sell or rent in England and Wales. You cannot list your home on property portals without displaying the EPC on the listing. In Scotland, the EPC must be displayed somewhere in your property, for instance in the meter cupboard or next to the boiler. If you have a building (with a roof and walls) that uses energy to condition the indoor climate (i.e. has heating, air conditioning or mechanical ventilation) then you will require an EPC when it is sold or let. Parts of a building designed or altered to be used as separate accommodation may require their own EPC. A team of Energy Assessors and Chartered Surveyors are uniquely placed to give advice on mees and provide a complete energy consultancy service.

Improving Your Rating

The cost of an EPC depends on the type and size of the property. There are no fixed fees, so it’s worth asking for quotes from several registered domestic energy assessors. The cost may be as little as £60 or as much as £120. If you arrange an EPC via an estate agent, rather than booking directly with a DEA, the price will be higher. Under the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, from the 1st April 2018, it is unlawful to let out domestic properties which have an Energy Performance Certificate (EPC) rating of F or G. Why? The regulations were put into place to improve energy efficiency of privately rented homes and to meet UK targets of CO2 reduction under the Energy Act 2011. An EPC includes recommendations on how the energy performance of the building can be improved (to reduce running costs) together with an indication of the payback period. There is no statutory requirement to carry out any of the recommended energy efficiency measures stated. Unearth additional details appertaining to Non-Domestic Energy Performance Contractors on this UK Government Portal entry.

Related Articles:

Further Information With Regard To Qualified Domestic Energy Assessors
Extra Information About Commercial Energy Performance Assessors
Extra Information On Non-Domestic EPC Assessors
Additional Insight On Accredited Commercial Energy Assessors
Further Information On Commercial Energy Performance Assessors
Background Insight With Regard To Qualified Domestic Energy Assessors
Background Information With Regard To Commercial Energy Performance Contractors