What are MEES regulations and who does it apply to?
Since 1 April 2018, all rented non-domestic properties have been required to have an Energy Performance Certificate (EPC) rating of at least an E before granting a new tenancy or extending/renewing an existing lease agreement. This is to ensure compliance with the Minimum Energy Efficiency Standards (MEES) Regulations 2018.
As of 1 April 2023, the law has now changed so that non-domestic landlords must now have an EPC rating of at least an E for all privately rented non-domestic properties, which includes those that are currently occupied and there has been no tenancy change.
What buildings are exempt from MEES?
There are certain standards that can be met meaning that a building is exempt from MEES regulations which are:
- Short-term lets which are 6 months or less (unless the contract states the possibility of extension beyond the 6 months from its beginning date).
- Lettings of 99 years or more.
- Properties which do not require an EPC which include temporary buildings, places of worship, and listed buildings (where energy efficiency modifications would impact their appearance).
Temporary exemption requirements
A temporary exemption may be granted if:
- The recommended measures do not meet the 7-year payback rule. This is when a suggested energy efficiency implementation does not yield back enough energy savings in 7 years to pay back the cost of its implementation (5-year exemption).
- Energy efficiency measures which will devalue the property by 5% (5-year exemption).
- All recommended energy-saving measures have been implemented (5-year exemption).
- Consent has not been given by the relevant third party to implement energy efficiency measures (5-year exemption).
- A person has recently become a landlord due to unexpected circumstances (6-month exemption).
Penalties for non-compliance
A penalty may be enforced if evidence of non-compliance with MEES Regulations is found (i.e., an EPC rating of F or G). This could include a fine of up to £150,000 or 20% of the value of the property, depending on the length of time the landlord has been in breach of the regulations.
How can OnGen (OnEfficiency) help landlords comply with MEES?
At OnGen, we can make meeting MEES regulations easy with OnEfficiency. OnEfficiency is a tool we offer which suggests several possible energy efficiency improvements which can be implemented to improve the EPC rating of a building or across an entire property portfolio. All that is needed is a recent EPC for an in-depth analysis to be carried out.
OnEfficiency can simulate the EPC rating after implementing one or multiple energy-saving measures. It will also calculate the savings and discounted payback period for each measure and therefore if the recommendation is MEES exempt.
As well as OnEfficiency, OnGen offers the OnGen Expert which assesses the feasibility of installing onsite renewable energy generation. Combining this groundbreaking tool with OnEfficiency can be the perfect solution to ensure MEES compliance, whilst also making huge savings on energy usage and contributing towards net zero ambitions.
Interested in making your site portfolio MEES compliant and cutting your organisation’s energy costs? Get in touch with the OnGen team today.
