Minimum Energy Efficiency Standard (MEES)

Understanding the rules of the road

MEES was introduced in March 2015 by the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015. The MEES Regulations originate from the Energy Act 2011. The regulations established a minimum level of energy efficiency for rented property in England and Wales.¹ (© Crown copyright. OGL^)

SaveMoneyCutCarbon advises that the MEES regulations currently do not affect domestic owner occupiers in England and Wales, nor more broadly in Scotland. The MEES regulations apply to non-domestic owner-occupiers.

The UK government has given guidance for landlords of both privately rented non-domestic and non-domestic properties on complying with the 2018 MEES standard Energy Performance Certificate (EPC) band E.

SaveMoneyCutCarbon advises that the EPCs display how energy efficient a building is and give it a rating from A (best) to G (lowest). The certificate also shows the costs of heating and lighting along with carbon dioxide emissions. EPCs indicate the potential energy efficiency rating if recommended improvements are made as well as showing how to achieve a better rating. EPCs are valid for 10 years from the date of issue.

Government guidance

From April 1st 2023, the requirement for non-domestic landlords to obtain at least an EPC E rating, unless they have registered a valid exemption, applies to all privately rented non-domestic properties, even where there has been no change in tenancy.² (© Crown copyright. OGL^)

Since April 1st 2020, landlords of domestic private rented property can no longer let or continue to let properties covered by the MEES Regulations if they have an EPC rating below E, unless they have a valid exemption in place.

The government guidance document advises that if a property is empty, with no plan to let it, no action to improve its rating is needed until a decision to let is made. The regulations apply to all non-domestic rented properties that are legally required to have an EPC. If a property has been marketed for sale or let, or modified, in the past 10 years then it will probably be legally required to have an EPC.

The regulations do not apply to non-domestic rented properties that are either:

• granted for a “term certain” (the original term or time period granted by a tenancy) not exceeding 6 months (unless the tenancy agreement contains provision for renewing the term or extending it beyond 6 months from its beginning, or, at the time it is granted, the tenant has been in occupation for a continuous period of more than 12 months)
• granted for a “term certain” of 99 years or more³ (© Crown copyright. OGL^)

The Energy White Paper “Powering our net zero future” assessed that the future trajectory for the non-domestic MEES would be EPC B by 2030. This is estimated to cover around 85% of the non-domestic rented stock, deliver up to 10.3TWh in energy savings by 2030, and 4.1MtCO2e of carbon (non-traded) over Carbon Budget 5 (2028-2032).⁴ (© Crown copyright. OGL^)

SaveMoneyCutCarbon’s view is that landlords in England and Wales might be left with stranded or obsolete assets if energy-efficiency improvements are not made to meet EPC standards. Making adequate upgrades and continuing with small efficiency changes during a building’s life can make an impact, helping landlords to meet evolving compliance rules.

Scotland regulations

The Scottish government introduced the Energy Efficiency Standard for Social Housing (EESSH) in 2014. It advises that, as a result, homes in the social rented sector are now some of the most energy efficient in Scotland, with 85% already achieving EPC D or above.⁵ (© Crown copyright. OGL^)

The Scottish consultation on the Energy Efficiency Standard for Social Housing post-2020 (EESSH2) proposed a target to maximise the number of homes in the social rented sector achieving EPC B by 2032 and that no social housing should be let after 2025 if the energy efficiency rating is lower than EPC D.⁶

As part of the overall strategy for low-carbon, energy efficient housing, the Scottish government has issued interim guidance for social landlords to the sector until a new standard is established and it has published a consultation seeking views on proposals for a new Social Housing Net Zero Standard (November 2023).⁷ (© Crown copyright. OGL^)

In Scotland, all non-domestic buildings are required to produce an Energy Performance Certificate (EPC) on sale or rental to a new tenant. Since 2016 regulations have required non-domestic buildings over 1000 square metres to produce an Energy Action Plan at the point of sale or rental.⁸ (© Crown copyright. OGL^)
 

MEES targets in England and Wales

Clarity on the implementation of MEES was given by the new government in July. Energy Security and Net Zero Secretary Ed Miliband told the Commons: “One thing that this Government will do that the last Government did not, is demand that landlords raise the standard of their accommodation to a proper energy performance certificate standard C by 2030.”⁹ (© Crown copyright. OGL^)

Currently, a non-domestic privately-rented property can be let if a landlord has carried out the recommended energy improvement works, but the property still has an F or G rating, and there are also other letting allowances.¹⁰

For domestic privately rented properties, if a landlord has installed all relevant energy efficiency improvements the EPC rating is still below E, they can register an exemption on the grounds that “all relevant improvements have been made and the property remains below an E”.¹¹ (© Crown copyright. OGL^)

SaveMoneyCutCarbon viewpoint

In SaveMoneyCutCarbon’s experience, effective energy-efficiency measures could include the installation of LED lighting, which can reduce electricity consumption in this area by 80% or more, depending on type of lighting adopted. Lighting controls could also provide further electricity savings.

Other measures could include solar PV panel installation. SaveMoneyCutCarbon has found that production of electrical power from solar panels can help to reduce energy costs with a return on investment in some cases of under four years. Carbon emissions associated with National Grid energy can also be reduced.

It has found that other energy-efficient solutions can also be effective in reducing both energy consumption and production of carbon emissions, including installation of demand-controlled ventilation, air-source heat pumps and water-saving devices.

This article has been written by SaveMoneyCutCarbon and is correct at 28 October 2024. This content does not constitute advice and is for general guidance only. Always undertake your own research before taking any action.

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