How Non-Domestic Properties Meet MEES Compliance Rules

Minimum Energy Efficiency Standards (MEES) place legal obligations on landlords of non-domestic properties to ensure buildings meet minimum energy efficiency requirements. The regulations are designed to improve the energy performance of commercial buildings, reduce carbon emissions, and prevent the continued letting of inefficient premises. MEES applies to a wide range of non-domestic properties, including offices, retail units, industrial buildings, warehouses, and mixed-use properties with commercial elements. Compliance is mandatory for both new lettings and existing leases, unless a valid exemption is registered.

What Are MEES Regulations for Non-Domestic Properties?

Under the current MEES regulations:

- A non-domestic property must have an EPC rating of E or above to be legally let
- Properties rated F or G cannot be newly let or continue to be let
- The regulations apply to both new leases and ongoing tenancies

Local authorities are responsible for enforcing MEES, with penalties linked to the property’s rateable value.

UNDERSTANDING THE NON-DOMESTIC EPC

A non-domestic Energy Performance Certificate (EPC) assesses a building’s energy efficiency based on:

Building fabric, including walls, roofs, floors, and glazing
Heating, cooling, and ventilation systems
Lighting efficiency and controls
On-site renewable energy technologies, where installed

The EPC provides a current rating, a potential rating, and a list of recommended improvement measures designed to improve energy performance and achieve compliance.

How Landlords Can Achieve MEES Compliance

STEP 1: REVIEW OR COMMISSION A VALID EPC

Landlords must ensure the property has a valid non-domestic EPC. EPCs are valid
for 10 years but should be updated if major changes have been made to the building
or its services.

If the EPC rating is E or above, the property is currently MEES compliant.

STEP 2: IMPLEMENT ENERGY EFFICIENCY IMPROVEMENTS

If the property is rated F or G, landlords are required to carry out energy efficiency improvements to raise the rating to at least E, unless an exemption applies.

Typical improvement measures include:

Upgrading lighting to LED with modern controls
Improving roof and wall insulation
Replacing inefficient heating or cooling systems
Installing modern controls and variable speed drives
Adding solar PV where feasible

STEP 3: APPLY THE COST CAP

Landlords are required to fund improvement works up to the £3,500 cost cap per EPC assessment. If all recommended measures have been installed and the property still does not achieve an E rating, an exemption may be registered.

STEP 4: REGISTER AN EXEMPTION (IF REQUIRED)

Exemptions may be registered where:

All cost-effective improvements have been completed
Third-party consent has been refused
Improvements would reduce the property’s market value by more than 5 %
A temporary exemption applies to a new landlord

Exemptions must be registered on the PRS Exemptions Register and typically last five years.

PENALTIES FOR NON-COMPLIANCE

Failure to comply with MEES regulations can result in:

Financial penalties of up to £150,000 per property
Publication of landlord details on the public enforcement register
Legal restrictions on letting the property

Conslusion

MEES compliance for non-domestic properties is a legal requirement and an opportunity to improve asset value, reduce operating costs, and enhance tenant appeal. By reviewing EPCs, implementing recommended improvements, and planning ahead for future standards, landlords can protect rental income and remain compliant in an evolving regulatory landscape.