What is EPC (Energy Performance Certificate)?
A UK certificate rating the energy efficiency of buildings from A to G. EPCs are required when buildings are sold or rented, and minimum standards apply to commercial properties.
Why it matters
From April 2027, commercial properties in England and Wales will need a minimum EPC rating of C to be legally let. Landlords with lower-rated properties face either costly upgrades or stranded assets. EPCs also directly correlate with Scope 2 emissions reporting.
Example
A landlord with a portfolio of six commercial units finds that two are rated E. Upgrading insulation and installing heat pumps brings both to a C rating, avoiding a potential £150,000 annual rental income loss when the 2027 regulations take effect.
Related terms
Energy Efficiency
Using less energy to perform the same task or produce the same output. Energy efficiency improvements reduce both costs and carbon emissions, often providing quick payback periods.
Operational Carbon
Carbon emissions from the energy used to operate a building, including heating, cooling, lighting, and appliances. Operational carbon can be reduced through energy efficiency and renewable energy.
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