If you are a commercial property landlord in England or Wales, you will probably be aware of the need to follow EPC and MEES rules. These are the regulations that are in place to help to ensure that commercial properties meet the carbon emission reduction and energy-efficiency requirements set by the government as part of their net zero plan.
It is important that commercial unit landlords properly understand the elements that are required, and in this article, we will take you through the EPC and MEES rules for commercial landlords as they stand in 2026.
What are the EPC and MEES Regulations for Commercial Landlords?
Every landlord and/or commercial property manager in the UK needs to be aware of the existence and need for compliance with MEES and EPC regulations to ensure that they are acting legally when they are renting out their property.
It is most important to know what the current MEES and EPC rules are when a landlord is taking on new tenants, looking for new tenants, or signing a new lease as the regulations have changed over the past few years.. There can also be other occasions when people might ask to see the EPC rating of the commercial property.
The term “MEES” stands for Minimum Energy Efficiency Standards. An EPC rating based on an inspection on residential and commercial private rented property determines whether it meets these standards. The term “EPC” stands for Energy Performance Certificate and relates to an inspection and subsequent certificate that gives the property an energy-efficiency rating according to measures such as insulation, boiler efficiency, and double glazing.
As the world tries to tighten up on green issues and creating sustainable workplaces, the level of energy-efficiency stipulated as acceptable for rented commercial property is continuously increasing. This not only ensures that the property is less wasteful in terms of the energy (and, consequently, money) that is used to heat and cool the property but also helps to make it a more pleasant place to be (during heatwaves, for example).
In this article, we are going to look at the current MEES and EPC requirements for commercial property in 2026, but the current understanding is that these will be updated in 2027 and then 2030.
What are the Current MEES and EPC Regulation Requirements?
As it stands in 2026, the MEES and EPC requirements for a commercial property are to have an EPC rating of C or above. This means that if a commercial property has an F or G rating, it cannot be rented out.
Legally, the only time when a commercial property can not have a ‘C’ rating or above is if it is not being rented out, or if an exemption has been registered.
If you are a commercial property landlord looking to lease your unit, if it is not compliant with these regulations, you may face enforcement actions and penalties, whilst also being unable to rent it legally.
The financial penalties can be up to £50,000 for commercial properties with a ratable value of up to £50,000, and for properties over £50,000 ratable value, the penalty can be up to £150,000. You could also be publicly listed as non-compliant and have your reputation damaged.
What is an EPC Inspection and Rating?
In order to comply with the MEES requirements is having the right EPC rating. An EPC, or Energy Performance Certificate, is awarded to a commercial property following an inspection. The inspector looks at a range of different aspects of the property in terms of energy-efficiency and carbon emissions, then rates the property between A and G (with A being the most efficient).
The certificate can give commercial unit landlords a few different pieces of information, including the property’s current rating, measures that could be carried out in order to improve the rating, and the potential rating that could be achieved if the measures were to be carried out.
A commercial EPC is valid for ten years and is available to tenants that are moving into the property – of course, it must have a rating of A, B, or C to be commercially rented.
What Happens in an EPC Inspection?
When it comes to having an EPC inspection on a commercial property, there are five parts to the assessment:
- Initial Assessment
In the initial assessment, the inspector will take a detailed look at the property, examining its dimensions, structure, construction techniques, design, and other factors that could affect the energy-efficiency of the building.
- Key Components Evaluation
In the second stage, the inspector will then look at some of the key components of the building that have the highest impact on its energy-efficiency. The key components are:
Heating system – type, control, and efficiency of heating systems are inspected in relation to energy-efficiency.
Cooling systems – if there are any cooling systems within the building, these are assessed for their energy-efficiency.
Lighting – the inspector will look at the lighting within the commercial property, particularly in the communal areas, to understand how efficient it is – and whether it could be improved.
Ventilation – the building’s ventilation can have an impact on its energy-efficiency – and also have an impact on its potential for future energy-saving measures.
- Insulation Assessment
A building’s insulation is a massive part of its energy-efficiency. In the assessment of insulation, the inspector will look at the existence and quality of insulation in the walls, roof, and floor, as well as windows in terms of double or triple glazing and its ability to keep heat in or out.
- Energy Consumption and Emissions
The fourth stage looks at the commercial property’s energy consumption and emissions. This involves examining the current energy use and usage patterns using whatever data is available. They estimate the CO2 emissions and also look at any renewable energy that is used and how efficient it is (solar panels, heat pumps, etc.).
- Analysis and Rating
In the final part of the process, the inspector will feed the information into a system that analyses the data, giving the EPC rating and certificate. You will be given a certificate with the rating and energy-efficiency score, and you will also be shown how the rating compares with other commercial properties that are similar to yours.
How Can a Commercial Landlord Prepare for an EPC Inspection?
As a commercial landlord, it is important that you are prepared for your EPC inspection. The inspector will need access to the whole of the commercial property, and if this is not possible on the day, the inspection will not be able to take place. You will also need to provide as many documents as you can relating to the building and its energy, such as building plans and any previous energy reports or paperwork relevant to any measure that you have put in place.
When the commercial property EPC inspection has been carried out, you will be given the certificate and your rating, which must be provided to any prospective tenants or buyers. It is valid for ten years, unless any major work is carried out within that time.
If your commercial property covers an area of 500m2 or more, and is often visited by the public, the certificate must be prominently displayed.
Given the trajectory that we are on regarding energy efficiency in commercial properties, it is recommended that you carry out as many of the improvements that are recommended as possible. These could be small changes such as changing to more energy-efficient lighting, or larger tasks, such as installing cavity wall insulation or changing heating systems.
The bar is set to rise significantly over the next few years, so the sooner these measures can be put in place, the better. This will also improve the desirability of the commercial property to potential tenants, and could, therefore, boost your ROI as a commercial property landlord.
Are There Any MEES Requirement Exemptions?
There are some occasions where a commercial property can be exempt from reaching these EPC standards – either permanently, or temporarily. In order to achieve this exemption, commercial landlords must register with the government on their Private Rental Sector (PRS) Exemptions Register through the Government portal.
Some of the reasons for exemptions include:
- High costs – if the commercial landlord has already spent a lot of money on energy-efficiency measures, but the EPC rating remains low
- Wall insulation – if the only improvement that is recommended is wall insulation, but an expert has deemed the property to be unsuitable for it
- Third-party consent – where the required improvements need third-party consent and this is proving to be problematic (you will need to show evidence of this)
- Property devaluation – if a professional has deemed that any improvement work on the property will actually devalue it by over 5%
- New landlords – in some circumstances, landlords can apply for a 6-month exemption to give them time to look at the measures required and action them.
Final Thoughts
It is a legal requirement for commercial properties in England and Wales to have a valid EPC rating of C or above when they are being rented out to tenants, and it is the commercial property landlord’s responsibility to ensure that it is compliant with these MEES regulations.
With climate change and government targets around sustainability, it is essential that commercial properties are as energy efficient as possible, and this will become an increasingly key part of ensuring the best rental income,
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