If you plan to sell, lease, or renew a lease on a commercial property in 2026, an Energy Performance Certificate (EPC) is a legal requirement in most cases. Without a valid certificate, you usually cannot legally market the property, and landlords risk penalties if the building fails to meet minimum efficiency standards.

This guide explains what the law requires, when an EPC is needed, and how to stay compliant before listing your property.

What Is a Commercial EPC?

A Commercial EPC measures the energy efficiency of a non-domestic building such as:

  • Offices

  • Shops & retail units

  • Warehouses

  • Restaurants & cafés

  • Industrial buildings

  • Mixed-use premises

The certificate gives a rating from A (very efficient) to G (inefficient) and includes:

  • Estimated running costs

  • Carbon emissions

  • Recommended improvements

  • Potential future rating

The EPC is valid for 10 years unless major changes are made to the building.

When Do You Need an EPC?

You must have a valid EPC before marketing the property.

Required for:

  • Selling a commercial property

  • Granting a new lease

  • Lease renewal to a new tenant

  • Assigning or sub-letting space

  • Newly constructed buildings

Not normally required for:

  • Temporary buildings (under 2 years use)

  • Some listed buildings where improvements would alter character

  • Standalone buildings under 50m²

  • Places of worship

  • Agricultural barns with low energy demand

Minimum Energy Efficiency Standards (MEES) in 2026

The most important rule affecting landlords is MEES.

Key requirement:

Commercial rental properties must have E rating or higher.

If your property is rated F or G, you cannot legally lease it unless:

  • You improve the rating, or

  • You register a valid exemption

Penalties for Non-Compliance

Local authorities can issue financial penalties if a property is let without meeting standards.

Possible consequences include:

  • Fines based on rateable value

  • Publication on the public non-compliance register

  • Forced improvement notices

In practice, non-compliant buildings also become difficult to finance or insure.

EPC Rules When Selling

You can still sell a property with any rating (even F or G).

However:

  • The EPC must be available to buyers

  • Buyers often negotiate price reductions

  • Lenders may request upgrade plans

  • Investors factor upgrade costs into offers

Poor ratings frequently reduce market value.

EPC Rules When Letting

This is stricter than selling.

To legally lease in 2026:

✔ EPC must exist
✔ Rating must be E or above
✔ Tenant must receive the certificate

If below E → improvements or exemption required before lease completion.

What Happens During the Assessment?

A qualified assessor visits the property and inspects fixed elements:

  • Heating and cooling systems

  • Insulation

  • Lighting

  • Windows & glazing

  • Hot water systems

  • Building construction

Typical duration:

  • Small shop: 30–60 minutes

  • Medium office: 1–2 hours

  • Large building: longer

The certificate is usually issued within 24–48 hours.

Common Upgrades to Reach Compliance

Most properties can reach E with practical improvements:

  • LED lighting installation

  • Heating controls & thermostats

  • Insulation upgrades

  • Modern boiler or HVAC systems

  • Efficient hot water systems

Often the cheapest upgrades provide the largest rating improvement.

Exemptions (If Improvements Are Not Possible)

You may register an exemption if:

  • Upgrade cost exceeds 7-year payback

  • Third-party consent refused

  • Listed building restrictions apply

  • All recommended improvements completed but rating still below E

Exemptions last 5 years and must be officially recorded.

Why EPC Matters to Buyers and Tenants

Energy efficiency now directly affects commercial decisions.

Tenants increasingly prefer efficient buildings because they offer:

  • Lower utility bills

  • Better comfort

  • Sustainability compliance

  • Corporate ESG alignment

As a result, efficient buildings lease faster and often achieve higher rents.

Quick Compliance Checklist (2026)

Before marketing your property:

✔ Check EPC validity (not expired)
✔ Confirm rating is E or above for letting
✔ Upgrade if rated F or G
✔ Provide certificate to agent/tenant
✔ Register exemption if applicable

Final Thoughts

In 2026, an EPC is no longer just documentation — it determines whether a commercial property can legally be rented and strongly influences its value when sold.

Landlords who prepare early avoid delays, penalties, and price negotiations, while efficient buildings remain more attractive to modern ten

EPCRate London