As of April 2023, MEES (Minimum Energy Efficiency Standards) has changed regulations for all commercial landlords. Not complying with these new regulations will make it unlawful for landlords to continue renting the property.
The government introduced MEES in 2015 to align with the UK’s net-zero ambitions. The minimum energy efficiency standards that took effect in April 2018 have only continued to progress and apply to all privately rented properties that hold an Energy Performance Certificate (EPC).
The MEES 2023 regulations state that all commercial properties with active leases and tenants must have an EPC rating of E or above. Failing to comply with this new standard will result in lease termination.
What Are The MEES Exemptions?
The following exemptions can be applied if the commercial property is currently an F or G-rated commercial rating. If you meet any of the following exemptions, your property has five years before it needs to meet the new criteria. Landlords are still responsible for registering their holdings on the PRS Exemptions Register. The exemptions available are:
- The 7-Year Test: If the property currently has energy efficiency improvements that will not return on investment through energy savings over seven years, starting from the date of the last improvement.
- Devaluation: The landlord must receive a report from a surveyor stating any energy efficiency improvements would reduce the property market value (or the building that the premises form part of) by 5%.
- Third-Party Obligations: A third party consisting of tenants or planning authorities may refuse to move forward with any energy-efficient improvements.
Landlord Compliance & Impact
If your property does not meet any of the above exceptions, then you are legally forced to act and comply. The biggest hurdle with the new MEES regulation is that commercial properties must hold an E rating or above. Ways to achieve this include:
- Check the EPC of their premises and consider both the rating and whether a new assessment is required.
- Instal appropriate and cost-effective measures consisting of but not limited to heating, cooling, hot water, or lighting facilities
- Ensure that the grant of any new leases includes sufficient access rights provisions that enable compliance with MEES requirements
MEES Beyond 2023
The timeline of the MEES rating has been a steady progression since 2018. The future guidelines beyond 2023 will eradicate the areas of leniency for landlords.
Starting in 2025, tenancy will not be granted to commercial properties with an EPC rating below C. This new standard will set the pace for the UK government to achieve all commercial tenancies holding an EPC rating of B by 2030. Prolonging any actions towards meeting compliance will no longer be possible. The time is now to partner with SNRG and the benefits of a funded rooftop solar and battery SmartGrid solution.
Improve Your MEES Rating With SNRG Smartgrids
We invite you to review the advantages of SNRG’s cost-effective solar improvements. The criteria with MEES will only continue to become more strict on commercial properties as the UK attempts to meet its net-zero targets. Any changes or improvements that you start today will increase the property value and guarantee a long-term benefit.
SNRG provides solutions that incorporate unique solar power grids, which align with new MEES regulations. Investing in solar efficiency with SNRG aligns landlords with:
- The UK 2030 net zero targets
- Assist with reducing carbon emissions of an estimated two million tonnes annually
- Promote commercial properties as a mass producer of green electricity.
The benefits of Solar PV have already been proven in providing low-cost, secure, green electricity. The UK is on course to double its solar capacity by 2030 – find out how your commercial property can benefit today!
Learn About SmartGrids:
References
- Energy efficiency rules for UK commercial property to tighten from April 2023
- Minimum Energy Efficiency Standard (MEES): a complete guide for commercial landlords
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