How Does the Minimum Energy Performance of Buildings Bill Affect my Business?
The Minimum Energy Performance of Buildings Bill is currently making its way through Parliament. The effects of this proposed law have cost implications for building owners, with a knock-on effect for tenants.
THE MINIMUM ENERGY PERFORMANCE OF BUILDINGS BILL AND EPC AT A GLANCE
If everything goes according to schedule, the proposed energy-related changes are set to come into force in December 2025 for new tenancies. The changes are required by December 2028 for existing agreements. For both categories, the changes are required only where “practical, cost-effective, and affordable”.
EXISTING REGULATIONS
The currently-in-force Minimum Energy Efficiency Standards Regulations bars the approval of new leases of ‘sub-standard’ domestic and non-domestic properties. This denotes a property with an energy efficiency rating of F or G.
The Energy Performance of Buildings Regulations also currently require an Energy Performance Certificate to be procured before a building is put on the market. This EPC rating should be stated in all advertising related to the property.
CHANGES UNDER THE MINIMUM ENERGY PERFORMANCE OF BUILDINGS BILL
If the bill goes forward, any residential tenancy granted on or after 31 December 2025 is required to have an energy efficiency performance of at least Band C. Existing tenancies have until December 2028 to reach this threshold. Non-domestic landlords are expected to follow suit by 2030.
THE RISK OF NON-COMPLIANCE
It is likely that leases entered into after December 2025 without meeting energy efficiency requirements will be regarded as illegal. It is expected that the penalties will closely mirror those of the existing Minimum Energy Efficiency Standards Regulations, which includes fines of up to – or even surpassing – £5000.
WHAT IS A GOOD BUILDING ENERGY RATING?
The proposed new energy performance standards put forward by the Minimum Energy Efficiency Standards Regulations requires new tenancies to have an energy efficiency rating of C. Existing tenancies are required to achieve this by December 2028.
This band is gauged using the Standard Assessment Procedure, which measures energy efficiency on a scale of 1 to 100 (100 being the best). Band C falls in the bracket of 69 to 80 points, which is directly attributable to the energy efficiency provisions of a property.
HOW DO YOU MEASURE THE ENERGY PERFORMANCE OF A BUILDING?
The provisions of the Minimum Energy Performance of Buildings Bill and related regulations are important to the achievement of the government’s 2050 energy goals. With 4.4 million privately rented homes in England – 19% of the country’s housing stock – it is concerning that only 60% of homes within the sector are set to meet the targets if energy efficiency transformation continues at the current rate.
It is anticipated that almost half the rented homes in England will be affected by the new provisions of the bill. The effect on buy-to-let landlords has the potential to be very costly (it has been reported that it could cost these landlords up to £10 000 to improve the energy performance certificate of their properties – and many would rather sell than face the expense).
With these kinds of statistics in mind, it is clear that a smart approach is needed. Propertymark has put forward recommendations including diversified solutions according to the age, condition, and size of a property. They have also called on local councils to devise aggressive retrofit solutions to tackle the changes. The use of smart energy monitoring and related technologies in the smart building environment are a key component of measuring and meaningfully improving the energy performance of a building.
HOW CAN BUILDINGS IMPROVE ENERGY EFFICIENCY?
● Smart energy monitoring, measurement, and management
● The move to automated lighting and electrical processes
● Advanced smart metering and submetering
● The shift to renewable energy sources
● Ensuring good maintenance of equipment
● Key equipment monitoring
● Focus on fine-tuning ventilation by best understanding usage and implementing data-inspired changes
● Adjust behaviour around heating and cooling trends
● Consider space optimisation around usage, utilising data for design
By implementing smart building energy control solutions, like those available from Smarter Technologies Group, buildings stand to simply and cost-effectively improve energy efficiency. Contact Smarter Technologies Group today to start achieving impactful energy efficiency aims.
About the author
Matthew Margetts is Director of Sales and Marketing at Smarter Technologies. His background includes working for blue-chip companies such as AppNexus, AOL/ Verizon, and Microsoft in the UK, Far East and Australia.
About Smarter Technologies
Smarter Technologies tracks, monitors and recovers assets across the globe in real time, providing asset tracking systems to the open market and fulfilling the world’s most complex asset tracking requirements. Our services cover a vast array of business sectors, products and equipment from container or pallet tracking to military-grade devices; and can be used across a broad spectrum of industries.
As a leading IoT company, we also provide smart building solutions for modern businesses, offering wire-free, battery-powered and low-cost IoT smart sensor technology. Our solutions will put an end to scheduled maintenance and help businesses utilise their building’s efficiency, benefitting from real-time alerts and facilities management tools that will bring them into the 21st century.
Smarter Technologies Group will help to digitally transform your organisation with our market-leading expertise in hardware, software and proprietary communications.
