What is an Energy Performance Certificate?
If you own, lease, sell or manage a business property in the UK, you’ll almost certainly come across an energy performance certificate, often shortened to EPC. It’s a legal document that shows how energy efficient a building is, how much energy it typically uses and where improvements could be made.
For business owners, an EPC is more than a compliance exercise. It plays a role in letting decisions, property values, running costs and future planning around energy use. Understanding how EPCs work - and what they mean for your business - helps you make clearer decisions about your premises and ongoing energy costs.
At Business Utility Hub, we speak to businesses every day that are unsure how EPC ratings affect their energy bills or future obligations. This guide from the energy experts Business Utility Hub explains what an energy performance certificate is, when you need one, how it’s assessed and what the results actually tell you.
What is an energy performance certificate?
An energy performance certificate is an official report that rates a building’s energy efficiency. It grades the property from A to G, where A represents a very energy-efficient building and G shows poor energy performance.
The EPC shows:
- The current EPC rating of the building.
- The potential rating if recommended measures are carried out.
- An energy efficiency rating based on standardised calculations.
- Estimated typical energy costs for heating and lighting.
- A list of recommended improvements that could improve energy performance.
- Information about carbon emissions linked to the property.
For commercial premises, this applies to most buildings that are sold, rented out or newly constructed. The certificate provides a consistent way for potential tenants, buyers and lenders to compare properties.
Why EPCs matter for business properties
An EPC reflects a building’s energy performance, not how your business personally uses energy day to day. Even so, the rating can influence:
- How attractive the property is to potential buyers or new tenants.
- Future letting restrictions linked to minimum EPC standards.
- Long-term energy bills and operational planning.
- Decisions around upgrades such as heating systems or insulation.
From an energy broker’s point of view, EPCs often highlight why two similar businesses in similar locations pay very different energy costs. A lower EPC rating usually means a building needs more energy to heat and power, which feeds directly into higher bills over time.
When is an EPC legally required?
A valid EPC is required when:
- A business property is built.
- A property is sold.
- A property is rented out to new tenants.
- A tenant moves and a new lease is agreed.
In most cases, the EPC must be available before the property is marketed by an estate agent or letting agent. It should be shown to potential tenants or buyers at the earliest opportunity.
There are limited exemptions, including some stand-alone buildings, certain temporary structures, and some non-residential agricultural buildings, but these are specific and should be checked carefully.
Minimum EPC ratings for commercial properties
In England and Wales, most rented commercial buildings must meet a minimum EPC rating of E. This applies to both new lettings and existing leases.
Properties with an F or G rating generally cannot be lawfully let unless an exemption is registered. This makes EPCs particularly relevant for landlords planning renewals, lease extensions or tenant changes in the near future.
While rules vary slightly in Northern Ireland, EPCs are still required and follow similar principles, with local registration and compliance differences.
EPCs, energy use and running costs
While EPCs don’t show actual bills, they help explain why some properties need more energy to operate.
Buildings with lower ratings often:
- Lose heat more quickly.
- Rely on older or inefficient heating systems.
- Need more energy to maintain working temperatures.
- Have higher typical energy costs over time.
This is where EPCs link closely with energy procurement. A building with stronger energy efficiency often gives us more flexibility to secure competitive business gas and electricity deals.
How is an EPC assessment carried out?
An EPC is produced following an energy assessment carried out by an accredited assessor. For commercial properties, this will usually be a non-domestic assessor trained to assess business buildings.
The assessor will review:
- The building structure and layout.
- Insulation levels, including roof insulation where accessible.
- Heating systems and controls.
- Lighting, including the type of light bulbs used.
- Ventilation and cooling.
- Hot water systems.
- Construction materials and glazing.
They’ll also look at features such as a meter cupboard, boiler type and how much heat the building retains.
The data is processed using the standard assessment procedure, which applies consistent assumptions about occupancy and energy use. This allows EPCs to compare buildings fairly, regardless of how individual businesses operate.
What does an EPC rating actually show?
The EPC shows how energy efficient the building itself is, not how well it’s currently managed.
Key sections include:
Current rating
This reflects the building’s existing energy efficiency rating based on its present condition.
Potential rating
This shows the potential EPC rating if all recommended measures are installed.
Recommended measures
The report lists recommended measures that could improve energy efficiency. These may include:
- Upgrading heating systems.
- Improving insulation.
- Installing solar panels.
- Switching to more efficient lighting.
- Improving controls and zoning.
Some measures are low-cost, others more involved. The EPC report also includes a recommendation report estimating the impact of each improvement.
How much does an energy performance certificate cost?
The energy performance certificate cost varies depending on:
- Size and complexity of the building.
- Property type.
- Location.
- Number of individual rooms or floors.
For business premises, EPC costs typically range from a few hundred pounds upwards. Larger or more complex sites with multiple self contained areas or mixed use may cost more.
While price matters, it’s worth using accredited energy assessors with experience in commercial buildings, as errors can lead to incorrect ratings and compliance issues.
How long does an EPC last?
A valid EPC lasts for 10 years, unless major changes are made to the building that would materially affect its energy performance.
If you already have an existing EPC, it can usually be reused for sales or lettings within that period. However, many landlords choose to get a new EPC earlier if improvements have been made and a higher EPC rating is achievable.
EPCs and energy efficiency improvements
For many businesses, EPCs are a starting point for planning energy efficiency improvements rather than an obligation to act immediately.
Improvements that can raise a property’s EPC often also help:
- Reduce ongoing energy consumption.
- Stabilise energy costs.
- Improve comfort for staff and customers.
- Support longer-term sustainability goals.
From our experience, businesses that invest in energy efficient improvements often find it easier to secure competitive energy contracts, particularly where improved building performance lowers overall usage.
EPCs for different types of business property
EPC rules apply across a wide range of buildings, including:
- Retail units.
- Hospitality venues.
- Manufacturing sites.
- Care homes.
- Warehouses.
- Self contained offices within larger developments.
- New build properties and existing dwellings converted for business use.
For whole house or whole dwelling conversions used commercially, the home’s EPC rating or home’s energy efficiency may still be relevant, depending on use and layout.
Is it worth getting an EPC if you already have one?
If you’re planning changes to your property, it may be worth reviewing whether to get a new EPC. Situations where this makes sense include:
- You’ve carried out upgrades to heating systems.
- Insulation or glazing has been improved.
- The building has been extended or reconfigured.
- You want to demonstrate a higher EPC rating to tenants or buyers.
An updated EPC certificate can provide clearer information to the market and reflect the building’s improved energy performance more accurately.
How Business Utility Hub helps businesses with EPC-related decisions
At Business Utility Hub, we don’t produce EPCs, but we work with businesses that are making decisions based on them every day.
We help by:
- Explaining how EPC ratings affect long-term energy bills.
- Reviewing how building performance links to contract choices.
- Advising on timing energy renewals alongside building upgrades.
- Supporting businesses managing multiple properties with different EPC ratings.
Because we monitor business gas and electricity prices daily, we can help you plan energy contracts around changes to your building’s energy performance.
Final thoughts on energy performance certificates
An EPC is a practical tool that helps businesses understand how their property performs, where improvements are possible, and how future compliance may affect them.
If you’re buying, leasing, upgrading or managing business premises, understanding what an energy performance certificate is and how it links to energy use and cost, puts you in a stronger position to plan ahead.
If you’d like to talk through how your property’s EPC rating could affect your energy costs, or how upcoming changes might influence your next contract, our team is here to help.
Call us on 0800 781 2700 - we answer within three rings - or email savings@businessutilityhub.co.uk for a no-obligation conversation about your business energy.
