MEES -Minimum Energy Efficiency Standards

MEES – Minimum Energy Efficiency Standards for Commercial Buildings

A new legal standard for energy efficiency will come into place in April 2018 that will affect landlords, investors, developers and lenders.

The MEES legislation was first introduced in March 2015. The current standards rate buildings for their energy efficiency from A – G, with F and G being the worst performing rating. The new law that will come into place in April 2018 will see a minimum standard of E, so no building can be rented out if it does not have at least an E rating for energy efficiency.

Implications of MEES for property owners

As of February 2016 it is estimated that 20% of non-domestic properties have an EPC rating of an F or G, meaning:

– Unless they were upgraded to meet the minimum standards it could be deemed as illegal to rent them

– The valuation of a property not meeting the standard will be affected as their marketability will be diminished

– Rent reviews on F and G rated properties may be adversely affected

What are the penalties for non-compliance?

The penalty for renting out a property that does not meet MEES regulations for less than 3 months will be 10% of the property’s rateable value, with a minimum penalty of £5,000 and a maximum penalty of £50,000. If the property is rented out for over 3 months the penalty is increased to 20% of the rateable value, with minimum and maximum penalties of £10,000 and £150,000 respectively.

 What can you do & how can we help?

Landlords, investors, developers and lenders can ensure they meet MEES by installing energy efficient technologies. Perfect Sense Energy specialises in LED lighting and Solar PV installations, which help improve a property’s EPC rating. An LED lighting installation will normally see a payback between 18 and 36 months, and with Carbon Trust grant funding available each organisation can claim 15% of the project cost, up to £5,000, as long as they meet the qualifying criteria.

For a no-cost survey at your site, get in touch today and see how you can improve the energy efficiency of your property.