If you own or manage commercial property, failing to comply with energy efficiency regulations in 2026 could be expensive. Under the Minimum Energy Efficiency Standards (MEES), landlords must not let commercial properties with an EPC rating below E, unless a valid exemption is registered.

Non-compliance can result in significant financial penalties and reputational damage.

What Is the Legal Requirement in 2026?

As of 2026:

  • Commercial properties must have an E rating or higher to be legally let

  • This applies to both new leases and lease renewals

  • The rule applies to most privately rented commercial properties in England and Wales

These regulations are enforced by local authorities under the framework set by the UK Government.

If you’re unsure about your current rating, book an assessment:
https://epcrate.co.uk/booking/

How Much Are the Fines?

Financial penalties depend on:

  • The property’s rateable value

  • The duration of non-compliance

  • Whether the breach is ongoing

Typical penalties can include:

🔴 Less than 3 Months of Non-Compliance

  • Fine up to 10% of the rateable value

  • Minimum £5,000

  • Maximum £50,000

🔴 3 Months or More of Non-Compliance

  • Fine up to 20% of the rateable value

  • Minimum £10,000

  • Maximum £150,000

In addition to fines, local authorities can publish details of the breach — which can damage your professional reputation.

What Triggers Enforcement?

Enforcement may occur if:

  • You grant or continue a lease on an F or G rated property

  • You fail to register a valid exemption

  • Your EPC has expired and you continue letting the property

  • You provide false or misleading information

If your certificate is close to expiry, check pricing and renew early:
https://epcrate.co.uk/pricing/

Can You Avoid Fines?

Yes — by taking proactive steps:

✔ 1. Improve Your EPC Rating

Upgrade lighting, heating controls, insulation, or HVAC systems to reach EPC E or higher.

Consult certified assessors:
https://epcrate.co.uk/services-epc-assessors-london/

✔ 2. Register a Valid Exemption (If Eligible)

Common exemptions include:

  • Seven-year payback exemption

  • All improvements made exemption

  • Devaluation exemption

Exemptions must be properly evidenced and registered — they are not automatic.

What About Future EPC Changes?

There is ongoing discussion around tightening minimum standards in the future (potentially EPC C for commercial properties). Acting early protects you against future regulatory changes and avoids last-minute costs.

Meet our team:
https://epcrate.co.uk/about-us-epc-company-london/

Why 2026 Is a Critical Year

By 2026, enforcement awareness is high, and local authorities are increasingly active. Non-compliance could mean:

  • Loss of rental income

  • Large financial penalties

  • Legal complications during lease negotiations

  • Reduced property value

Final Advice for Commercial Landlords

To avoid fines:

  • ✔ Confirm your current EPC rating

  • ✔ Review improvement recommendations

  • ✔ Upgrade where necessary

  • ✔ Renew expired certificates

  • ✔ Register exemptions correctly

Compliance is far cheaper than penalties.

Office: 150–160 City Road, London, EC1V 2NX
Phone: 020 3488 4142
Email: info@epcrate.co.uk