What Is MEES? A Guide to Minimum Energy Efficiency Standards

The minimum energy efficiency standards (MEES) are not just for domestic landlords. They also apply to commercial landlords, investors, developers, and lenders. Though the rules for domestic properties might look a little different than non-domestic ones, landlords must do their due diligence to ensure they meet whatever minimum energy efficiency standard the government chooses to implement.

These standards must be met by commercial property owners or they risk being targeted for large fines and other issues. With 75% of retail property emissions coming from premises owned and operated by small businesses, it is part of the duty of care of these business owners to ensure that their properties meet current energy efficiency standards.

Establishing ESG reports can also help companies discover where improvements need to be made. If a company isn’t currently aware of what it needs to disclose, legal experts and other parties can help them to establish what they should be reporting.

What are the MEES Regulations?

The MEES regulations were introduced by the government to ensure that all buildings, commercial or residential, meet a certain level of energy efficiency. Energy Performance Certificate (EPC) ratings are given to buildings to determine whether or not they can be considered energy efficient. Ratings run from the best, A, to the worst, G. When a property’s rating is high, e.g. A-rated EPC, it will need less energy to heat and will therefore cost less to heat.

Part of the reason for introducing the MEES regulations was to encourage landlords and property owners to make the necessary improvements to raise a property’s rating.

As of April 2023, commercial properties must have an EPC rating of E. Properties currently with a rating of F or G cannot be rented out unless a legitimate and valid exemption applies.

The government intends to raise the minimum standard again within the next few years. All commercial buildings will be required to be rated at least a B by 2030, with a minimum grade of C required by 2027. If companies are not currently planning to make improvements to the energy efficiency of their properties, they need to begin to draft plans sooner rather than later.

These changes don’t just apply to existing buildings. As part of the Net Zero Review, it has been recommended that all new non-domestic buildings be Grade B by and after 2025.

Does MEES Apply to Everyone?

The MEES regulations are not the most straightforward, and this means that companies need to work out whether they need to be compliant. Typically, MEES will not apply to:

• Buildings which do not require an EPC, such as industrial sites, workshops, or agricultural buildings with a low energy demand
• Buildings where the EPC is over 10 years old, or where there is no EPC
• Existing tenancies of less than 6 months that have no right of renewal
• Existing tenancies of over 99 years

Things can also become more complicated when a landlord only owns part of a property, such as owning a retail unit on the ground floor but not the private domestic properties in the building above. Refer to the government guidance or consult legal experts to ensure that you properly understand what is expected of you.

The MEES regulations are only applicable in England and Wales. The legislation for Scotland can be found under Section 63 of the Climate Change (Scotland) Act 2009. Business owners with properties in Scotland and England or Wales must be aware of the differences in legislation. There are currently no concrete plans to raise energy efficiency standards in Northern Ireland, but politicians are discussing how to bring efforts in line with those of other UK nations.

Are There Any More Exemptions?

Exemptions can be granted in certain circumstances, allowing commercial landlords to let a building to which the MEES regulations would typically apply but are currently below the minimum standard.

• An independent surveyor determines energy efficiency improvements that have or could have been made to the property but which wouldn’t pay for themselves within seven years.
• An independent surveyor determines that any relevant energy efficiency improvements made to a property could potentially devalue it by more than 5% of its current worth.
• Consent from persons such as a tenant or planning authorities has either been refused or has been given alongside conditions the landlord is unable to reasonably comply with.

Are There Penalties for Non-Compliance with the MEES regulations?

MEES regulations are enforced by Local Weights and Measures Authorities (LWMAs) in England and Wales. Civil penalties for non-compliance are tied to the property’s rateable value.

If a property is rented out in breach of MEES for a period of fewer than three months, it will be subject to a penalty equivalent to 10% of the property’s rateable value. This penalty is a minimum of £5,000 and capped at £50,000. If the tenancy is longer than three months, the penalty rises to 20% and carries a minimum of £10,000 and a maximum of £150,000. Any lease between a landlord and tenant is not breached by non-compliance with the MEES regulations and, therefore, remains valid.

What can your business do to improve energy efficiency?

Regardless of your property’s current EPC rating, there will be more improvements you can make to ensure further compliance in the future. Improvements may include:

• New windows or doors
• Wall or roof insulation
• LED light installation
• Renewable energy solutions

Perfect Sense Energy is here to help commercial property owners cut down their energy bills and install the ideal sustainable solutions to power their everyday activities. Though we specialise in solar panel installation, we can help customers identify the right sustainable and energy efficiency measures for their needs. Perfect Sense Energy’s customers have seen energy reductions of 42% after installing LED lighting, resulting in less spending on energy bills but an increase in lux levels throughout the property.

Improving an energy efficiency rating can require great investment, but putting in the work now can deliver a return on investment year on year. In many cases, it is more cost-efficient to undertake a complete change than to tackle multiple installations across smaller projects.

Whether you are interested in raising your commercial property’s EPC rating, or you wish to explore what the world of sustainable energy sources has to offer, Perfect Sense Energy’s experts are waiting to guide you to the right solution.

With our expert knowledge, we can help you bring lasting change to your business with green upgrades designed to give back over years to come. With more legislative changes coming and an inevitable further rise of the MEES regulations, now is the perfect time to invest in renewable energy solutions.

At Perfect Sense Energy, our solar specialists are committed to providing top-tier service and support, ensuring our solutions help you achieve your energy goals.

Get in touch or give us a bell on 01942 367 599 to discuss your commercial solar panel needs!