If you’ve been paying attention to the energy sector, you’d have noticed that Britain is increasingly embracing green energy. A huge part of that push has been ensuring that all fossil fuels still in use are mitigated through various methods, one of which is insulation and other energy efficiency improvements. Furthermore, building regulations for future buildings will have their certification withheld if they haven’t met these very energy efficiency improvements.
But what about current buildings? For many, having a high energy efficiency rating and lower energy bills would help everyone, but it would be a colossal amount of work which would cause major disruptions to the economy. There are exemptions, however, such as a rented property. By 2030, all rented property’s rating must reach a B rating for their Energy Performance Certificate (EPC), or lose the right to be rented out.
Read on to find out more.
What is an EPC rating?
An EPC rating stands for energy performance certificate rating is essentially a grading for how energy efficient an overall property is. They scale from an A rating, this being the most efficient, to the lowest, G rating. This rating is based on several factors:
- Heating System – Heating systems, such as gas boilers, electric heaters, heat pumps etc all have ages and efficiency ratings. Older boilers typically score incredibly low in this factor.
- Insulation – The amount of insulation as well as its quality will be graded, as insulation plays a massive part in energy efficiency by preventing heat loss through whatever is insulating, usually wall insulation.
- Windows and Doors – Doors are checked for any gaps and prevention. Glass has a lot more checks, such as whether it’s glazed, it has coatings or it’s made to be low-emissivity.
- Lighting – What are the bulbs used in the property? Older bulbs use more energy, whereas newer bulbs such as LED have energy efficiency features that make them cost-effective to run.
- Renewable Energy – Does your property have any renewable energy sources installed? These can be anything from solar panels to heat pumps, and even wind turbines. Renewable energy signifies that the property is nearing energy independence and has a low carbon footprint.
Does EPC Rating Matter?
Yes. High EPC says a lot about a building, a lot like how nutrition labels say a lot about food. A building that has a high energy performance certificate will have higher energy efficiency, meaning you will spend less for more energy. This is because that energy is produced at a lower rate, and has a more difficult time escaping the property due to effective insulation.
That being said, there are some other benefits aside from saving money:
- Comfort – In a building where heat loss is prevalent, you can struggle to feel comfortable, as the temperature will warm only to be lost again. With a high energy performance rating, that heat will be consistent.
- Higher Property Value – Energy efficiency within a building means that the property is cheap to live in.
- Environmental Benefits – Using green energy or having a well-insulated building means you reduce your carbon footprint for all the energy you use.
Minimum Energy Efficiency Standard – MEES Regulations 2030
The minimum energy efficiency standards (MEES) have been steadily reshaping the landscape of energy efficiency in England and Wales. It was first introduced in 2018 to ensure your private rented property meets a standard that is cost-effective and lowers the carbon footprint of the country.
Since then, however, it has extended. The current target for MEES regulations is to ensure that private rented properties achieve EPC Rating B by 2030. As of the time of publishing this article, this is still over 5 years away.
What are the consequences of failing to meet the minimum energy efficiency standard?
If you miss the minimum energy efficiency standards and you continue to let out a property with an energy performance certificate (EPC) that is too low, then you’re looking at penalties of up to £5,000 for residential properties, and much higher for commercial properties.
Some exemptions apply, such as listed buildings, temporary lets, and properties that have specific difficulties with making energy efficiency improvements.
EPC Home Improvements – Where To Start
If you make rental income for a buy-to-let property, then you’ll need to increase that property’s EPC rating with relevant energy efficiency improvements. The following information is sourced from Energy Savings Trust.
Begin With A Professional EPC Assessment
First and foremost, an EPC assessment is the best way to move forward with your energy performance certificate journey. EPC Rating B is a hard bar to meet, and getting there will likely cost some money, for identifying the areas which need improvements more than others is the most efficient way to move forward.
An EPC assessment will break down your building’s energy consumption and identify the specific area in which improvements can be made.
Cost-Effective Small Upgrades
The following are some of the upgrades you can install to raise a property’s energy efficiency. They will cost as little as possible for the highest increase toward energy efficiency rating, possibly pushing you up into another grade.
- LED Lighting – Traditional incandescent light bulbs and fluorescent light bulbs have higher running costs, whereas LED lights offer lower energy bills by using up to 80% less energy. They last 25 times longer.
- Smart Thermostats – Smart thermostats learn heating and cooling preferences and adjust the temperatures automatically. Their presence in the building signals that the building’s energy efficiency will be monitored, as these devices can save up to 12% on heating bills.
- Draught Proofing – Check for and seal gaps around windows, doors and other openings with inexpensive silicone. This can make a noticeable difference not only in cost but also the comfort. Energy Savings Trust states that proper draught proofing can save up to £70 per year for remarkably little work in comparison.
Bigger Investments
The following are some of the investments that will leave a hole in the bank account but will pay back for it with the measured and proven savings that they’ll facilitate. The following estimates have come from Energy Saving Trust.
- Insulation – Insulation ensures that any heat in the building will be kept within, instead of losing it through the walls, floors, and loft – all of which are common candidates for insulation.
- Loft Insulation – Adding loft insulation of up to at least 270mm can improve EPC Rating by 2-5 points, and save around £175 per year energy bills.
- Wall Insulation – Wall insulation comes in two forms – solid and cavity walls. Cavity walls can be filled with insulation material and improve EPC rating by 2-3 points, saving around £160 per year. Solid Wall Insulation is a lot more expensive, but insulating it will raise your EPC rating by 2-4 points, with potential savings of up to £300 per year.
- Floor Insulation – Insulating your floors, especially in the case of suspended floor constructions, can improve your EPC Ratings by 1-2 points, and save you up to £60 per year on bills.
- Boiler Replacement – If your boiler is old, and inefficient, it’s going to weigh down your EPC rating by quite a bit. Replacing an old boiler is a good idea even discounting EPC, as energy-efficient heating systems are more efficient and comfortable than traditional boilers.
- Condensing Boiler – Highly efficient, reusing heat that would normally be lost, leading to lower energy bills and reduced emissions. We estimate it will boost EPC by around 5-10 points.
- System Boiler – Ideal for large buildings with demands for hot water, and it frees up your loft as it doesn’t need a separate tank in the loft. EPC ratings can be boosted by 2-5 points with this.
- Combi Boiler – Massively popular. Compact, with heating and hot water on demand. No need for any tanks. Boosts EPC rating by around 2-5 points.
- Biomass Boiler – Uses renewable fuel, such as wood pellets and chips, and has a lower carbon footprint than most boilers. Eligible for government incentives, and EPC rating can be boosted by doing so. Without incentives, EPC boosts are between 5-10+.
- Heat Pump – Heat pumps extract heat from the ground, and compress it, making it one of the most environmentally friendly heating options out there. Heat pumps boost EPC by a massive 10-15+ points, and will likely increase the value of a building outright.
- Hybrid System – This is a combination of gas/oil boilers and heat pumps together, switching between fuel sources when temperatures get extreme. EPC Boost is between 5-10+.
- Solar Panels – Whilst much of the to-do has been made about insulation or heat generation, electrical energy is also a factor in improving a building’s energy performance. The following are some types of Solar Panels and their EPC Ratings.
- Monocrystalline Solar Panels – These have the highest efficiency rates of all solar panels. They have a sleek black appearance that blends well with many British buildings and requires less roof space than most. That being said, they are the most expensive, and their EPC rating increase reflects that, being boosted by 15-20+ points.
- Polycrystalline Solar Panels – These have lower efficiency than monocrystalline solar panels, with a blue-speckled appearance. They are far more affordable and best for budget-conscious buyers. EPC is likely to be boosted by between 10-15 points.
- Thin Film Solar Panels – They have the lowest efficiency of all solar panels, being lightweight and flexible, making them suitable for many non-standard roofs. They boost EPC ratings by between 5-10 points.
- Bifacial Solar Panels – Bifacial solar panels capture light from both sides of the panel, getting more out of a single solar panel than most others. The EPC rating for this solar panel is hard to pin down, as they are not as popular as alternative solar panels.
Conclusion
Overall, your property’s energy efficiency is going to be a big factor in how much it’s worth going forward. While there has been success in reducing carbon footprints, one of the main drivers has been the need to keep heating bills in check, especially in the face of global issues which have caused inflationary pressures.
If you need an inspection, or installation of energy-efficient measures that will boost your EPC Rating, we service the majority of the features listed in this article. Get in touch to see how we can help you.