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Epcs – a Catalyst for Low Carbon Commercial Buildings
The UK has one of the oldest and least efficient building stocks in Europe, accounting for nearly half of the UK’s carbon emissions. If you overlay this statistic with the new Government target to reduce CO² emissions by 80% by 2050, it is clear that direct action must be taken to reduce the emissions from buildings. This article focuses on commercial buildings, which are a clear target for such action and new measures have been recently introduced which target new buildings and for the first time, the stock of existing buildings.
Energy Performance Certificates (EPCs) came into force on the 1st of October 2008 under the European Union Energy Performance of Buildings Directive 2002, and are a legal requirement for almost all commercial buildings when they are completed, modified, sold or leased. EPCs are intended to act as a catalyst for improving the performance of a building as they must be provided in the sales literature for the property. Potential tenants can then make a value judgment on a building based on the Certificate, putting pressure on owners and landlords to manage performance improvements in their properties before putting them on the market.
What is an EPC and what does it show? - the EPC shows the energy efficiency of a building as an Asset Rating in bands from a more efficient ‘A’ rating to a less efficient ‘G’ rating and also gives a numerical indicator of energy performance for each building based on its standardised use.
When do I need an EPC? – an EPC is required on the construction, modification, sale or lease of a commercial property that is greater than 50m². There are some specific exceptions that are detailed in the Government’s guidance documentation.
What is involved in producing an EPC? – producing an EPC for a commercial or ‘non-domestic’ building is a rigorous process which requires the creation of a software model, from which its energy performance can be derived. Data for the building is captured from a site inspection as well as from drawings, specifications and manuals. A zone matrix is then created for each floor which takes account of zone activity, heating, cooling, lighting & ventilation. This, together with the shape and size of each zone and floor are entered into the software model, together with details of the construction fabric of the building. The energy model is generated using SBEM – the Simplified Building Energy Model which is a tool approved by the Government for this purpose. SBEM produces the EPC & rating for the building as well as a standard recommendation report on how the building rating could be improved.
“EPCs determine how efficient a property is and provide an Asset Rating that owners and occupiers can use to manage performance improvements”, explains Richard Nussey of L’atelier. ” Clients are already installing more energy efficient lighting, better insulation and modern boiler systems that improve their building efficiencies and therefore their Asset Ratings. Our customised client reports show specific improvements in terms of expenditure per kilogram of CO² saved and their expected payback. Better published ratings translate into higher perceived value for tenants and owners in a market which is ever more conscious and selective over environmental issues. Better ratings will also translate into shorter void periods and higher rental income or sale prices from Clients so there is really no downside in the medium term.
The next stage is to implement low and zero carbon technologies to take the building stock to another level of sustainability and, with fuel costs rising, the viability of these improvements can only become easier to justify in financial terms”.
What are the penalties for not having a Commercial EPC? – Fines for the failure to produce an EPC can be anything from £500 to £5,000 depending on the property’s rateable value and a commercial EPC will still be required before you can lawfully complete the sale or lease of your property.
Where do I get a Commercial EPC? - an EPC must be produced and lodged on to the central database by an Energy Assessor who is a member of a Government approved accreditation scheme.
What is a Recommendation Report? - a Recommendation Report is produced as part of the EPC process and is a computer generated document listing potential changes that, if made to the property, could improve the asset rating, based on the data input during the EPC modelling process. An Energy Assessor can provide advice and guidance on how best to improve asset ratings, following an assessment of the property.
Why do you need an EPC? – with an EPC, the potential buyers or tenants will be able to get an impartial report of the energy use and the likely costs of the existing building. This makes it easier to compare the likely energy costs of occupying seemingly similar buildings. A commercial EPC will also allow sellers and landlords to gain an insight into the areas where energy performance and efficiency could be improved within their property.
I wish to let a single floor of my building – do I need an EPC? – yes you do and an EPC can be provided for just that part of the building, provided it is constructed ‘for separate use’.
I am selling a building with a retail unit on the ground floor with a flat over it. Can I have a single EPC for the whole building? – yes, but only if access to the flat is via the retail unit; if there is separate access to the residence then two EPCs will be required, one for the retail unit and one for the flat.
About the Author
Richard Nussey is Energy Assessor working with Energy Performance Certificates (EPCs) providing company called L'atelier. You can contact him on http://www.l-atelier.co.uk
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