New legislation meaning thousands of commercially rented properties are at immediate risk of breaching new guidelines on Minimum Energy Efficiency Standards (MEES).
Under the new standards landlords will be unable to let properties with an EPC rating below an ‘E’ either to new tenants or the renewal of existing contracts, reports suggest this will effect 17% of all commercial buildings.
A current D or E rating could breach standards
When SBEM update their methodology for calculating EPCs every 2 years, the criteria becomes more demanding and so every time an EPC is renewed, unless building improvements have been made, the rating will inevitably fall. Making the legislation a ticking time bomb for many landlords, as thousands of properties currently sitting with a D or E rating will fall below the MEES standard when the EPC rating is renewed in the coming months and years.
Incorporating a renewable energy generator in to the property can be a revenue generating solution, not only can an appropriately designed system improve the EPC rating it can also make the building more ‘rentable’ as you have the option of offering the tenant discounted price green electricity.
As an example , on an appropriate roof space a solar PV system can provide returns of over 12%/annum, where the landlord sells electricity back to the tenant. Another option for the landlord is to host a funded system which is fully financed and operated by a third party, enabling landlords to meet Minimum Energy Efficiency Standards and maintain the viability of their assets without any capital outlay.
iGen Energy can advise on where and how renewable energy generators can be used within your portfolio to achieve MEES. We work with Landlords throughout the entire process from design and construction through to the operation and billing of clean energy used by tenants.