Property owners are responsible for meeting various legal regulations, including those concerning the energy performance of a property. Every property in the UK is required to hold an energy performance certificate which certifies how energy efficient the property is. These ratings can say a lot about how liveable the property might be and offer an indication of how high energy bills may be at that property depending on its score.
Read on as we uncover what an energy performance certificate is and how it works.
What Is an EPC?
An Energy Performance Certificate (EPC) is a requirement for most properties. EPC's are documents that provide a rating for a property’s energy consumption, based on an assessment of how much energy the property uses, and how efficiently it operates. This takes into consideration both heating systems and energy usage for utilities powered either by electricity or gas.
The purpose of an EPC is to help owners and potential tenants of a rental property understand how energy-efficient the property is, and how high its energy costs may be. A higher EPC rating reflects better energy efficiency and ensures lower energy bills. Low EPC certification properties will have higher running costs due to inefficient energy usage.
This difference between a property with a higher EPC rating and one with a lower score can have multiple causes. Older heating systems such as boilers and/or radiators take longer to heat a property and use more energy, lowering EPC ratings. Poor insulation or draft proofing causes heat to escape from a property more easily and requires more energy usage, which again, also contributes to poorer EPC ratings.
Inefficient electrics, such as the wiring of sockets and light fittings and possibly, the use of older, less energy-efficient lights and light bulbs, can also contribute to a lower EPC rating. These are just a few of the more common factors affecting a property's rating. However, it is important to understand exactly how these scores are given when assessing energy efficiency.
The two primary criteria are:
Carbon Dioxide Emissions: measured annually across the whole property’s output, calculated by the ton.
Energy Use: measured by how much energy the property consumes for each square metre of space.
Checking an EPC rating can be useful when purchasing property as the documents will provide a clear score and methodology for the rating given, as well as useful suggestions on how to improve a rating.
EPC Ratings Explained
EPCs are ranked on a scale from A to G. A is the highest possible rating and indicates the property is extremely energy efficient whilst G is the lowest, signalling the property is in dire need of work to improve its energy efficiency.
EPC ratings are ranked as follows:
A: score of 92 or higher.
B: score between 81 and 91.
C: score between 69 and 80.
D: score between 55 and 68.
E: score between 39 and 54.
F: score between 21 and 38.
G: score between 1 and 20.
It is a legal requirement to have an EPC for most rental properties in the UK, with the government setting a target for a minimum EPC rating of C or higher by 2030.
To obtain an EPC, owners need to have their property assessed by a qualified energy assessor to evaluate the building's energy performance. To hire an assessor, it will cost from £35 up to £120 depending on the size of the property. Once given, EPCs remain valid for ten years, upon which they must be renewed.
Certain properties are exempt from requiring an EPC, with listed buildings being the most common. Listed buildings have restrictions on redeveloping or reupholstering the property, which makes it harder to improve energy efficiency.
The Benefits Of EPC Ratings
Improving an EPC rating offers long-term financial and sustainability benefits for property owners and should be taken seriously. If owners stay on top of their EPC rating they could expect to benefit on multiple fronts. More energy-efficient properties mean less energy usage, which could lower the cost of a property's energy bills significantly.
Similarly, a higher EPC rating is more attractive to potential buyers or, higher-paying tenants, and could improve the value of a property substantially. On an environmental note, improving an EPC rating will also result in reducing a property's energy usage and as a result, lead to fewer carbon emissions and benefitting the planet.
To check any property's EPC rating, visit the government database that catalogs all ratings for property across the UK. Potential buyers should check certificates for expiry dates to ensure they're well informed before completing any property purchase.
