Understanding MEES: A Practical Guide for Property Professionals

Expert insights into overcoming challenges and achieving sustainable building performance.

The UK’s Minimum Energy Efficiency Standards (MEES) are a critical part of the drive towards reducing carbon emissions and promoting energy efficiency in the built environment. MEES regulations require properties in England and Wales to meet a minimum Energy Performance Certificate (EPC) rating before they can be legally rented. This ensures that buildings across the country—whether commercial, industrial, or residential—contribute to sustainability goals.

An Energy Performance Certificate (EPC) is a document that rates a building's energy efficiency on a scale from A (most efficient) to G (least efficient).

As of 1 April 2023, all non-domestic properties must achieve a minimum EPC rating of E. An EPC rating of E indicates that a property has an energy efficiency rating of 39-54%. Properties with an E rating are often older with poor insulation and outdated heating systems; they have higher energy bills, a larger carbon footprint and reduced comfort.

However, stricter regulations are on the horizon, with all privately rented properties expected to achieve an EPC rating of C by 2028. For landlords and facilities managers, understanding and preparing for these changes is essential to stay compliant and competitive.

As of 2023, 28% of commercial buildings in the UK are at risk of not meeting the proposed Minimum Energy Efficiency Standards (MEES) C-rating by 2027. This indicates that a significant portion of the commercial property market will need urgent upgrades to avoid penalties and maintain marketability.

An EPC must be displayed in a commercial building if it has a total useful floor area exceeding 500 square metres, is frequently visited by the public, and an EPC has already been produced for its sale, rental, or construction. All EPCs are valid for 10 years.

Why MEES Compliance Matters

Beyond meeting legal requirements, MEES compliance offers significant benefits:

• Cost Efficiency: Energy-efficient buildings reduce operational costs through lower utility bills.
• Enhanced Property Value:  A higher EPC rating can increase the marketability and value of your property.
• ESG Alignment:  Meeting MEES standards supports Environmental, Social, and Governance (ESG) goals, with investors increasingly demanding high EPC ratings as part of their sustainability requirements. High EPC ratings align with EU Taxonomy and are supported in ESG disclosures, such as the Global Real Estate Sustainability Benchmark (GRESB), enhancing long-term portfolio sustainability and meeting stakeholder expectations.
• Future-Proofing:  Proactive compliance prepares you for tighter regulations, avoiding last-minute scrambles and potential penalties. Non-compliance with MEES could cost the commercial property sector over £1 billion in annual rental income. This figure is based on the current number of non-compliant properties (over 19,000) that have EPC ratings below E, highlighting the financial implications of failing to meet energy efficiency standards. Non-compliance with MEES can result in fines ranging from £5,000 to £150,000, depending on the property’s rateable value and the duration of the breach.

The Challenges of MEES Compliance

Ensuring MEES compliance often requires property owners to assess and address a range of factors, from outdated infrastructure to operational inefficiencies, which can complicate the process.

While the benefits are clear, achieving compliance can be challenging:

• Ageing Infrastructure:  Retrofitting older buildings to meet modern energy standards requires careful planning and investment.
• Budget Constraints:  Balancing upgrades with financial feasibility can be daunting, particularly for multi-tenant properties.
• Tenant Collaboration:  Engaging tenants in energy-saving initiatives requires clear communication and effective strategies.

These hurdles, while significant, are manageable. With the right approach and expert support, achieving MEES compliance becomes a strategic advantage.

Strategies for MEES Compliance

Implementing effective strategies for MEES compliance is essential for property owners, landlords, and facilities managers, helping them meet regulations, enhance energy efficiency, increase property value, and align with growing sustainability expectations. From energy audits to tenant engagement, these are our top tips to make compliance more achievable and cost-effective.

1. Conduct Energy Audits

An energy audit is the foundation of MEES compliance. It provides a detailed analysis of your building’s current energy performance, pinpointing areas for improvement. The UK government's analysis of the Energy Savings Opportunity Scheme (ESOS) revealed that large companies implementing energy audit recommendations achieved average annual energy savings of approximately 5,000 MWh, with 80% of these savings stemming from measures costing less than £250,000. Follow-up energy audits often uncover additional savings opportunities, with the ESOS research report highlighting that organisations which conducted repeat audits typically identified further savings of 5-15% by refining and optimising initial energy efficiency measures.

2. Implement Targeted Upgrades

Strategic upgrades can dramatically improve your EPC rating:

• Insulation and Glazing: Improving a building's insulation (e.g., in walls, floors, or roofs) helps retain heat during winter and cool air during summer, reducing reliance on heating and cooling systems. Double or triple-glazed windows feature multiple layers of glass with insulating gas between them, reducing heat transfer and noise pollution.
• Efficient Lighting: Replacing outdated lighting with LED systems yields immediate energy savings. LEDs use less energy, last much longer, and generate less heat. Occupancy sensors automatically turn lights on or off based on room use, further reducing unnecessary energy consumption.
• HVAC Enhancements: HVAC stands for Heating, Ventilation, and Air Conditioning. These systems regulate a building’s indoor climate by managing temperature, humidity, and air quality. Upgrading to energy-efficient HVAC units, such as those with variable-speed motors or advanced filtration systems, can cut energy usage while improving occupant comfort. Regular maintenance, including cleaning filters and inspecting ducts, ensures these systems operate at peak performance.

3. Leverage Renewable Energy

Integrating renewable energy sources like solar panels or heat pumps can significantly boost your building’s sustainability profile. Facilities managers should assess the feasibility of these systems based on the building’s energy demands and structural capabilities.

Popular options include:

• Solar Panels:  Buildings can often generate enough power to offset a significant portion of their energy needs or even sell excess electricity back to the grid.
• Heat Pumps:  These devices transfer heat from the air or ground to provide efficient heating and cooling. Air-source heat pumps are relatively easy to install and can operate in temperatures as low as -15°C, while ground-source heat pumps are highly efficient but require more upfront investment.

Facilities managers should assess the feasibility of these systems by considering factors like roof space for solar panels, structural load capacity, and the building's energy consumption patterns. Additionally, incentives such as the UK’s Smart Export Guarantee (SEG) can make these investments more financially attractive by offering payments for surplus energy exported back to the grid.

4. Strengthen Maintenance Programs

Preventive maintenance is essential for sustaining MEES compliance and ensuring building systems operate at peak efficiency. Regular inspections, such as checking HVAC filters and assessing insulation, can identify issues before they escalate, while scheduled servicing, like boiler and chiller maintenance, ensures systems remain reliable and energy-efficient. By addressing potential problems proactively, a robust maintenance program reduces energy consumption, extends equipment lifespan, avoids costly breakdowns, and ensures continued compliance with energy standards.

5. Engage and Educate Tenants

Tenant collaboration is crucial in multi-tenant buildings. Facilities managers can foster an energy-conscious culture by:

• Sharing energy-saving tips.
• Offering incentives for sustainable practices.
• Organising workshops or campaigns to raise awareness.

6. Embrace Smart Technology

Smart building technologies, such as Energy Management Systems (EMS), revolutionise how facilities managers monitor and optimise building performance. By providing real-time data on energy usage, temperature control, and equipment performance, these systems enable early detection of inefficiencies, allowing for immediate corrective actions. Predictive maintenance powered by smart technology minimises unexpected breakdowns by identifying potential failures before they occur, reducing downtime and costly repairs.

Additionally, these tools support long-term energy efficiency goals by tracking trends over time and recommending tailored upgrades to improve EPC ratings. For example, automated systems can optimise HVAC schedules based on occupancy patterns or adjust lighting levels according to natural daylight availability. Leveraging these technologies not only streamlines operations but also enhances sustainability, ensuring compliance with MEES while driving significant cost savings and tenant satisfaction.

Exemptions

Under the UK's Minimum Energy Efficiency Standards (MEES), certain commercial properties may be exempt from meeting the standard EPC E rating. Key exemptions include:

• Listed Buildings:  Buildings officially protected due to historical or architectural significance, where compliance with energy efficiency requirements would unacceptably alter their character or appearance.
• Temporary Buildings:  Structures intended to be used for two years or less.
• Industrial Sites and Workshops:  Non-residential agricultural buildings, industrial sites, and workshops with low energy demand.
• Small Standalone Buildings:  Detached buildings with a total floor space under 50 square metres.
• Vacant Buildings and Demolition:  Buildings are due to be sold or rented out with vacant possession, suitable for demolition, or where the buyer, tenant, seller, or landlord has all the relevant planning and conservation consents for demolishing them.
• Short Leases:  Properties leased for less than six months, provided the lease does not include a right of renewal and the tenant has not been in occupation for more than 12 months.
• Long Leases:  Properties leased for 99 years or more.

To apply for an exemption from the commercial MEES rules, landlords must register the property on the Private Rented Sector (PRS) Exemptions Register, providing appropriate evidence to support the claim. The register is the same regardless of the property type, be it a warehouse, theme park, shop, office or public house.

EPC Exemptions: Is It Worth Applying?

While MEES exemptions are an option, the process is often complex and time-consuming, with no guarantee of local authority acceptance. Instead, achieving the EPC E-grade minimum is frequently easier and more cost-effective than expected. Simple upgrades, like switching to LED lighting or improving HVAC efficiency, can quickly boost compliance. At Karsons Consulting, we recommend focusing on practical solutions that enhance your property’s value and sustainability rather than relying on exemptions.

While exemptions can offer temporary relief from MEES compliance, they are often complex to secure and come with limitations that may not align with long-term property goals. For most property owners and landlords, achieving compliance through strategic upgrades is not only more straightforward but also adds lasting value to the property. To illustrate the practical benefits of taking a proactive approach, consider the case of Holland Park Villas, where targeted strategies delivered both compliance and enhanced operational efficiency.

Case Study: Holland Park Villas

Karsons Consulting’s involvement with Holland Park Villas demonstrates how MEES compliance can be achieved through a combination of strategic audits and ongoing support. By ensuring compliance with maintenance standards and providing expert advice on energy efficiency, Karsons helped this high-end residential development enhance operational performance while meeting regulatory requirements.

How Karsons Can Help

Navigating MEES regulations requires expertise and a proactive approach. At Karsons Consulting, we specialise in:

• Energy Audits:  Comprehensive assessments to identify improvement areas.
• Compliance Support:  Ensuring your building meets current and future MEES standards.
• Tailored Solutions:  Delivering bespoke upgrades and strategies to align with your specific needs and goals.
• Tenant Engagement: Facilitating collaboration to enhance building-wide sustainability.

Conclusion

MEES regulations mark a significant step towards greener, more sustainable buildings. While the challenges of compliance may seem complex, they present an opportunity to enhance property value, reduce costs, and align with ESG goals. By taking a proactive approach and leveraging expert support, facilities managers and landlords can not only meet MEES standards but also unlock long-term benefits for their properties and tenants.

Don’t let MEES compliance become a last-minute headache. Schedule a free consultation with Karsons Consulting to assess your property’s readiness and discover bespoke strategies for achieving compliance.
Email us at info@karsonsconsulting.com or call 020 3282 7605 today!

Sources

1. Property Reporter (10 November 2023),  Over a Quarter of Britain's Commercial Buildings Not Ready for 2027’s EPC Crackdown. https://www.propertyreporter.co.uk/over-a-quarter-of-britains-commercial-buildings-not-ready-for-2027s-epc-crackdown.html.
2. Search Acumen (21 September 2023),  Non-compliance with Energy Efficiency Standards Could Cost Commercial Property Sector Over £1 Billion in Annual Rental Income. https://www.search-acumen.co.uk/news/non-compliance-with-energy-efficiency-standards-could-cost-commercial-property-sector-over-1-billion-in-annual-rental-income.
3. Envision Eco (24 April 2024),  Understanding the UK Minimum Energy Standards (MEES): A Step Closer Towards Sustainable Commercial Buildings. https://www.envisioneco.com/news/understanding-the-uk-minimum-energy-standards-mees-a-step-closer-towards-sustainable-commercial-buildings.
4. Energy Advice Hub (16 February 2023),  Does Your Commercial Building Meet the New Minimum Energy Efficiency Standards? https://energyadvicehub.org/does-your-commercial-building-meet-the-new-minimum-energy-efficiency-standards.
5. UK Government, Department for Business, Energy & Industrial Strategy (February 2017),  Landlord Guidance: Non-domestic Private Rented Property Minimum Standard. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1148676/non-dom-private-rented-property-minimum-standard-landlord-guidance.pdf.
6. Bouquet, A., London EPC (17 December 17 2018),  How to Get a Commercial MEES Exemption. https://www.london-epc.co.uk/how-to-get-a-commercial-mees-exemption.
7. UK Government, Department for Business, Energy & Industrial Strategy, and Department for
   Energy Security & Net Zero (22 March 2019),  Guidance on PRS Exemptions and Exemptions Register Evidence Requirements. https://www.gov.uk/government/publications/private-rented-sector-minimum-energy-efficiency-standard-exemptions/guidance-on-prs-exemptions-and-exemptions-register-evidence-requirements.
8. Carbon Trust (December 2013),  ESOS: Analysis of the Potential for Energy Savings from Audits. https://assets.publishing.service.gov.uk/media/5a7eb7a9e5274a2e87db1746/ESOS__Analysis_of_the_Potential_for_Energy_Savings_from_Audits_FINAL.pdf.
9. UK Government (1 January 2023),  Smart Export Guarantee (SEG): Earn Money for Exporting the Renewable Electricity You Have Generated. https://www.gov.uk/government/publications/smart-export-guarantee-seg-earn-money-for-exporting-the-renewable-electricity-you-have-generated