MEES regulations: how will they impact building owners and landlords?

MEES set a minimum energy efficiency level for domestic and non-domestic privately rented properties. They were passed as legislation in 2011 before coming into force in 2018 as part of the Government’s commitment to reach net zero by 2050. This report focuses on non-domestic properties.

When MEES were introduced, building owners and landlords of commercial property had to have an Energy Performance Certificate (EPC) rating of at least E before commencing a new tenancy.

EPCs rate the energy efficiency of a building using grades from A to G, with A being the most efficient. They are required if you rent, sell or construct a property, and in all buildings above 50m2.

From 1st April 2023, all buildings must have an E rating or better, even if there are no changes in tenancy. The current proposed guidelines will see the bar raised to a C rating in 2027, and a B rating in 2030.

Savvy landlords have started planning upgrades now as the process to energy efficiency can be a long and sometimes complex one. The first step is to understand EPCs.

EPCs are assessed through two main factors – building fabric and building services.

• Fabric relates to the construction make-up of a building, such as structural frame, floors, internal and external walls, glazing and the roof.
• Building services is concerned with the provision of heating, cooling, lighting and electrical power to the building.

New builds can aim for Passivhaus certification, which has the potential to vastly reduce the energy needed for heating and cooling by using enhanced building fabric parameters and energy efficient building services.

Insulation is arguably the area that can have the biggest impact when looking at improving energy efficiency. Internal insulation can be used for solid brick or metal clad properties. Cavity walls can be an easy win for improving energy efficiency if they don’t have any insulation.

It’s important to insulate the roof where possible. A house without an insulated roof loses about a quarter of heat through the roof. It’s harder to put a figure on commercial properties as they vary so much, but it’s safe to assume that a roof with poor insulation will impact overall energy efficiency, regardless of whether the building is a traditional office or a warehouse.

Glazing is another fabric measure to consider, especially in buildings that have a lot of glass. Double or triple glazing is a must to help retain heat in a space.

Air tightness can be a deceptively difficult issue to address, depending on which part of the building is experiencing air leakage. Thermographic studies are used to establish the locations where a building is losing heat, however, this can’t always be done if the location is hard to access. During a refit, work with a designer to ensure that all doors and windows are a tight fit.

It goes without saying that LED lighting is a critical step. It can be worth having a full lighting design carried out as part of a refit. Doing a full design can flag up where lighting is being overspecified. For example, sometimes there are more light fittings in a meeting room than are required to generate the necessary levels; so some fittings can be removed, saving energy while still providing good lighting levels.

These suggestions give a broad overview of what needs to be considered for an improved EPC rating and reducing energy consumption as well as the associated carbon emissions. As mentioned earlier in this report, it’s important to find an assessor that will be able to support the process by offering expert guidance. Partnering with a fit out company that is knowledgeable about the factors impacting EPC ratings is just as critical. There will undoubtedly be challenges along the way, but most can be overcome with advance planning.

2. Default values in EPC assessments

Default values assume the worst, so they are best avoided during an assessment. This might not be possible for every metric if the data does not exist. Work with an EPC assessor that will ensure they avoid default values wherever possible. This might lead to a higher cost for the assessment, but if it results in a better end grade then it’s money well spent. Furthermore, you’ll also have the benchmark data for future assessments.

3. Buildings with lots of glass

Big, tall glass buildings can be among the hardest to improve – the limited ability to insulate them removes a key method of reducing heat loss. Owners will have to focus efforts on other areas, such as glazing, air tightness and efficient fuel systems, such as lighting and ventilation.

4. Structural costs

Solar panels are a great way for a building to produce its own energy. However, some buildings may need structural work to support their weight. This can get expensive so must be taken into consideration before any solar projects go ahead.

5. The UK Power Network

Many owners might plan a wholesale switch to electric as part of their energy efficiency plans. However, they will need to work with the UK Power Network (UKPN) to ensure that the incoming supply will have capacity. The UKPN is the only group that deals with this and the process can take a long time, so owners must plan and engage well in advance. Failure to do so could delay the project and cause a building to miss a MEES milestone.

Tasman House, Elstree, EPC rating ‘A' →

6. Global warming potential of refrigerants

Global Warming Potential (GWP) is a measure of how destructive a climate pollutant is. Carbon dioxide has a GWP of 1 R410a, a common refrigerant in commercial spaces, has a GWP of 1,890. It is only a small amount of product in the grand scheme of a commercial space, but it can still have a big impact on an EPC score. R32 is an alternative and has a GWP of 677, which is significantly lower.

7. Disruption to tenants

As all buildings must have a minimum of an E rating by April 2023 regardless of whether or not there is a change in tenancy, there will have to be work done while a space is occupied. This can be particularly tricky in a building with multiple tenants. Owners and landlords will need to engage with occupants, explain why work is being carried out and try and agree on timelines that will be the least disruptive.

8. Planning and timelines

With so much to consider it may be overwhelming to plan and manage the project. The best time to start planning is now, even if a space is already at an E rating. To get to a B will take a time, money and effort so even if work is not urgent, starting the preparation now will make the process much easier.