From 1 April 2023, non-domestic rental properties will have to meet the minimum E rating even if they are already tenanted.
The regulations have been introduced to improve the energy efficiency of buildings in the domestic and non-domestic private rented sector (in England and Wales).
Trading Standards are responsible for enforcing the regulations in relation to non-domestic premises.
Since 1 April 2018, all properties that are being offered for let must have a minimum E rating on their Energy Performance Certificate (EPC).
This means that it is now prohibited to:
- offer a new tenancy for an F or G-rated property
- unless it meets one of the limited exemptions.
The MEES regulations rely on the EPC framework contained within The Energy Performance of Buildings (England and Wales) Regulations 2012. These rules required that all properties required a valid EPC (unless exempt) when offered for sale or rent.
If the property does fit an applicable exemption, this should be registered on the PRS national Exemption Register [https://prsregister.beis.gov.uk/NdsBeisUi/used-service-before]. Landlords and commercial letting agents can get advice or support on the MEES regulations, or Energy Performance Certificates. Please contact the Business Compliance team.
Domestic properties
The MEES rules relating to domestic properties are enforced by the Council’s Private Sector Housing team. For more information, visit their Domestic MEES advice page [https://www.coventry.gov.uk/housing-enforcement/private-sector-housing-enforcement-policy/6].
Further sources of advice
A guide to the Private Rented Property minimum standards [https://www.gov.uk/government/publications/the-private-rented-property-minimum-standard-landlord-guidance-documents] has been produced by Department for Energy Security and Net Zero [https://www.gov.uk/government/organisations/department-for-energy-security-and-net-zero] and Department for Business, Energy & Industrial Strategy [https://www.gov.uk/government/organisations/department-for-business-energy-and-industrial-strategy]
Business Compliance Team
Open 9amâ5pm Monday to Friday (excluding bank holidays)
Energy Performance Certificates
You must have an EPC if:
- you rent out or sell the premises
- a building under construction is finished
- there are changes to the number of parts used for separate occupation and these changes involve providing or extending fixed heating, air conditioning or mechanical ventilation systems
You can be fined between £500 and £5,000 based on the rateable value of the building if you don’t make an EPC available to any prospective buyer or tenant.
When you must display one
You must display an EPC by fixing it to your commercial building if all these apply:
- the total useful floor area is over 500 square metres
- the building is frequently visited by the public
- an EPC has already been produced for the building’s sale, rental or construction
How much it costs
The cost of an EPC will depend on the building being assessed. All EPCs are valid for 10 years.
How to get a certificate
You can only get an Energy Performance Certificate (EPC) from a commercial energy assessor [https://www.gov.uk/get-new-energy-certificate].
The type of assessor you’ll need will depend on the complexity and features of the building. If you need advice on choosing one, speak to a commercial (non-domestic) energy assessor or contact the approved accreditation scheme they belong to.
Landlords and commercial letting agents can get advice or support on the MEES regulations, or Energy Performance Certificates.
Please contact the Business Compliance Team.
Business Compliance Team
Open 9amâ5pm Monday to Friday (excluding bank holidays)
Legislation and penalties
The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 establish a minimum level of energy efficiency for privately rented property in England and Wales.
Requirements are in force from 1 April 2018. This means that from 1 April 2018, landlords of privately rented property in England or Wales must ensure that their properties reach at least an Energy Performance Certificate (EPC) rating of E before granting a new tenancy to new or existing tenants.
These requirements will apply to all private rented properties in England and Wales, even where there has been no change in tenancy arrangements from 1 April 2023 for non-domestic properties.
Trading Standards are responsible for enforcing the regulations in relation to non-domestic premises.
Since 1 April 2018 all properties that are being offered for let must have a minimum E rating on their Energy Performance Certificate (EPC).
This means that it is now prohibited to offer a new tenancy for an F or G rated property unless it meets one of the limited exemptions
Non compliance | Penalty |
---|---|
Providing misleading information | Financial penalty not exceeding £5,000 and publication of non-compliance |
Renting out a non-compliant property for less than 3 months | 10% of rateable value with a minimum penalty of £5,000 and a maximum penalty of £50,000 and publication of non-compliance |
Renting out a non-compliant property for more than 3 months | 20% of rateable value with a minimum penalty of £10,000 and a maximum penalty of £150,000 and publication of non-compliance |
Business Compliance Team
Open 9amâ5pm Monday to Friday (excluding bank holidays)
Exemptions from the energy efficiency regulations
The Private Rented Sector (PRS) Exemptions Register is for properties which:
- are legally required to have an EPC
- are let on a relevant tenancy type
- cannot be improved to meet the minimum standard of EPC band E for one of the reasons set out
- ‘7 Year Payback’ Exemption
- ‘All Improvements Made’ Exemption
- ‘Wall Insulation’ Exemption
- ‘Consent’ Exemption
- ‘Devaluation’ Exemption
- ‘New Landlord’ Exemption
Visit the GOV.UK - Guidance on PRS Register [https://www.gov.uk/government/publications/private-rented-sector-minimum-energy-efficiency-standard-exemptions/guidance-on-prs-exemptions-and-exemptions-register-evidence-requirements] to find more information on exemptions and how to register them.
You don’t need an Energy Performance Certificate (EPC) if you can demonstrate that the building is any of these:
- listed or officially protected and the minimum energy performance requirements would unacceptably alter it
- a temporary building only going to be used for 2 years or less
- used as a place of worship or for other religious activities
- an industrial site, workshop or non-residential agricultural building that doesn’t use much energy
- a detached building with a total floor space under 50 square metres
- due to be demolished by the seller or landlord and they have all the relevant planning and conservation consents
Vacant buildings and demolition
A building is also exempt if all of the following are true:
- it’s due to be sold or rented out with vacant possession
- it’s suitable for demolition and the site could be redeveloped
- the buyer or tenant has applied for planning permission to demolish it
Business Compliance Team
Open 9amâ5pm Monday to Friday (excluding bank holidays)
Improving the energy efficiency of your properties
We have ambitious plans to make Coventry a net zero city by 2030.
Net zero means having a balance between the amount of greenhouse gases we put into the atmosphere and those we take out.
We have already committed to reducing the environmental impact of our own buildings, operations and transport.
However, to achieve our net zero goal and help prevent the severe effects of climate change we all need to lower our greenhouse gas emissions.
The benefits of going green
As one of the more than 12,000 businesses in Coventry, we ask you to join us in making our city an even better place to live and work. No matter how small your business, your actions can make a big difference to the future of our city.
As a green business, that doesn’t negatively impact the environment, you can:
- help protect the planet for future generations
- enjoy incredible opportunities for business growth in the new green economy
- save you money on energy costs
Save costs and increase resilience
Businesses are facing increasingly higher utility bills due to volatility in the energy market.
The Climate Change Levy has also imposed an additional cost on SMEs that rely on non-renewable energy sources such as gas.
Attract new customers
Improve your business reputation and competitiveness. Consumers are becoming more selective and, more than ever before, are looking for products that are "green", supplied by businesses that can prove they are actively taking steps to reduce their environmental impact’. A recent survey of customer views found that 65 percent of people plan to be more mindful of their purchases and their environmental impact.
You can help protect yourself from rising energy prices by reducing how much energy you use.
This might include.
- installing insulation
- draught proofing
- extra window glazing
- switching to less carbon intensive heating
- installing LED lighting
- generating renewable electricity
Download Energy Self Audits.
Other ways of cutting your carbon impact, which may be easier than you think, include:
- removing all unnecessary packaging from your products
- limiting business travel
- sourcing goods and services locally
For more information, including ideas for small changes your business can make straight away, visit our practical energy and Net Zero small business resource page [https://www.coventry.gov.uk/trading-standards/minimum-energy-efficiency-standards-mees-regulations-2015-non-domestic/6].
Also, the greener your business, the more competitive you will be when tendering for contracts. Environment and social governance (ESG) questions are included in most tenders, and contractors will want to see evidence of how you intend to minimise your impact on the environment, as part of a successful tender submission. As well as opening your business up to new opportunities, having strong green credentials as part of your branding will help attract the best talent and can improve staff morale and productivity.
Business Compliance Team
Open 9amâ5pm Monday to Friday (excluding bank holidays)
Resources for small businesses
Businesses, small and large have an important role to play in helping protect and enhance the environment. There is a wealth of information and support for businesses and other organisations freely available on the internet.
British Business Bank
The British Business Bank website [https://www.british-business-bank.co.uk/] includes various jargon-busting guides on business sustainability.
Their knowledge share pages are broken down into topics such as:
- Learn what’s possible
- Prepare for the change
- Take practical action
- Where to find support.
The National Federation of Self-Employed and Small Businesses (FSB)
FSB provides some useful free online resources designed for small business owners embarking on the wider sustainability journey or path towards becoming a net zero business. Subscribing members to FSB get access to more resources but subscribing is not essential to access their free resources. Their free resources can be found on the sustainability knowledge sections of the FSB website [https://www.fsb.org.uk/knowledge/fsb-infohub/small-business-sustainability-hub.html]. Some current suggested useful resources are listed on this page but many others are available:
- Transition to net zero with the Zero Carbon Business Portal [https://www.fsb.org.uk/resources-page/transition-to-net-zero-with-the-zero-carbon-business-portal.html] – Pre-recorded webinar
- Green Tariffs: How to Cut Your Energy Consumption [https://www.fsb.org.uk/resources-page/green-tariffs-how-to-cut-your-energy-consumption.html] – Pre-recorded webinar
- How to save water in the workplace [https://www.fsb.org.uk/resources-page/how-to-save-water-in-the-workplace.html] – Article
FSB regularly add new guides and resources to its website. You can keep up to date by subscribing to their newsletter. [https://www.fsb.org.uk/join-us/register.html]
Have a look at the FSB Small Business Sustainability Hub [https://www.fsb.org.uk/campaign/small-business-sustainability-hub.html] which is regularly updated with the latest resources, tools and information to help your small business prepare for changes, go green and be more sustainable.
Calculating your business' carbon emission (carbon footprint)
- Carbon Footprint.com provides an online carbon calculator [https://www.carbonfootprint.com/calculator.aspx] which is free for up to one building. Paid for support options are also available.
- The Carbon Trust provides a free online SME carbon calculator [https://www.carbontrust.com/resources/sme-carbon-footprint-calculator].
- The Department for Environment, Food and Rural Affairs (DEFRA) has a Small Business User Guide [https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/69494/pb13310-ghg-small-business-guide.pdf] which includes guidance on how to measure and report your greenhouse gas emissions.
Zero Carbon Business
- Zero Carbon Business website [https://zerocarbonbusiness.uk/] provides a one-stop shop for information and resources for businesses in the UK. The website is simple but informative and breaks information down into specific sections:
- Path to Net Zero Step by Step [https://zerocarbonbusiness.uk/become-a-net-zero-business/] – This section allows you to select the sector your business operates within as well as the location and will provide you with a tailored high-level net zero plan, which is a simple step-by-step guide.
- Support and funding [https://zerocarbonbusiness.uk/find-support-and-funding/] – What support and funding options may be available to you as a business nationally and regionally, including West Midlands.
- Net Zero: the basics [https://zerocarbonbusiness.uk/net-zero-the-basics-in-30-seconds/] presents a whistle-stop guide to the basics of net zero.
- Case studies [https://zerocarbonbusiness.uk/case-studies/]– outlines short descriptive examples of businesses in various sectors that have taken a wide range of steps from fleet improvements to energy efficiency measures to improve their overall business sustainability. These include a range of UK-wide examples, from small actions to larger changes in business operations to become more sustainable.
- Carbon Trust [https://www.carbontrust.com/resources/carbon-reduction-and-net-zero-for-smes]: Offer a wide range of free guides and resources to help SMEs and start-ups tackle net zero and energy efficiency.
- For key definitions see Carbon jargon - what does it all mean [https://zerocarbonbusiness.uk/carbon-jargon-net-zero-offsetting-science-based-targets-what-does-it-all-mean/]
Sustainable Business Toolkit
- Although not UK-specific The Sustainable Business Toolkit [https://www.sustainablebusinesstoolkit.com/sustainability/] provides some useful sustainability resources.
SME Climate Change Hub
- SME Climate Hub [https://businessclimatehub.org/uk/] is a free resource but requires an initial commitment, which is a pledge to act and given the quality of the resource making the pledge should not deter businesses. The commitment is simply a pledge to act by completing the commitment to halve emissions by 2030, achieve net zero by 2050, and report on your progress yearly. By committing to reduce your emissions through the SME Climate Hub, you will be counted in the United Nation’s Race to Zero campaign. This allows you to partner with thousands of businesses and governments globally to reach net zero emissions by 2050 as well as gain access to a pool of free resources.
- One of these resources is Climate Fit [https://smeclimatehub.org/climate-fit/], developed by experts in the areas of business and sustainability from The University of Cambridge Institute for Sustainability Leadership [http://www.cisl.cam.ac.uk/] and BSR. Climate Fit is a free online training course to help SMEs reduce their carbon emissions and join the collective race to net zero. Climate Fit has been specifically designed for SMEs.
How it works:
- Seven modules break the tasks down into achievable steps.
- 20-30 minutes per module, this self-paced course is designed so you can set the pace.
- Highly interactive, featuring videos, activities, and quizzes to assist your learning journey.
- Learn from your peers, with case studies on other businesses that are leading the way on climate action
- Set concrete actions, which you can take back to your business to effectively implement change.
- Official help on businesses energy complaints, microbusiness gas or electricity and advice on energy efficiency schemes from Great Britain’s energy regulator, Ofgem [https://www.ofgem.gov.uk/information-consumers/energy-advice-businesses].
- British Gas Business [https://www.britishgas.co.uk/business/blog/category/videos/]is committed to helping support businesses comply with UK plans to reach Net Zero by 2050.
Other free learning, knowledge and resources
- Free Courses England [https://freecoursesinengland.co.uk/] offers free courses accredited qualifications offer benefits for individuals and organisations from all backgrounds regardless of employment status, career level or interests. You must meet the eligibility criteria [https://freecoursesinengland.co.uk/am-i-eligible/] for the courses.
- Various business courses [https://freecoursesinengland.co.uk/free-courses-1/] are available, of relevance to Sustainability and Environmental Management. Both of the below courses are examples of six-week courses consisting of approximately 4 to 5 hours of weekly study.
- Understanding environmental sustainability
- Understanding climate change and environmental awareness
- The Green Business Network [https://www.coventry.gov.uk/info/240/coventry_and_warwickshire_green_business_programme/2972/coventry_and_warwickshire_green_business_programme/7] allows businesses to come together, share ideas and promote energy, resource, waste and water efficiency as well as engage on low-carbon, environmental and green sustainability initiatives.
- The Small Business Guide to Sustainable Business Practices [https://www.cultivatingcapital.com/sustainable-business-practices/]
- Prioritizing the planet: 11 ways small businesses can become more eco-friendly (a bit more of an easier read) [https://www.greenbiz.com/article/prioritizing-planet-11-ways-small-businesses-can-become-more-eco-friendly]
- SME Climate Hub [https://businessclimatehub.org/uk/], helping businesses gain access to tools and guides from the government.
Water-saving tips for businesses. A three-step process to help you measure your water use, minimise your waste and maintain the results. [https://www.stwater.co.uk/wonderful-on-tap/save-water/saving-water-made-simple/businesses]
Food waste prevention
Guides to help you and your business increase available product life for consumers.
- Food waste – retailers [https://wrap.org.uk/resources/guide/food-waste-prevention-guide-help-you-your-business-increase-available-product-life]
- Food waste – hospitality [https://guardiansofgrub.com/] (also delivered by WRAP)
- Coventry Food network [https://letstalk.coventry.gov.uk/hub-page/Coventry-Food-Network]
Business Compliance Team
Open 9amâ5pm Monday to Friday (excluding bank holidays)