Commercial EPC ratings explained: bands, asset ratings and expiry

What do the EPC bands mean?

The EPC rating, from A+ (best) to G. It comes from the asset rating. The band is set by the asset rating, on a fixed scale: A+ is below 0, A is 0 to 25, B 26 to 50, C 51 to 75, D 76 to 100, E 101 to 125, F 126 to 150 and G over 150.

What is a commercial EPC's asset rating?

It's the number on the front of the certificate. DCLG's guide to EPCs for non-dwellings describes it as a CO2-based index of the energy the building is expected to use for heating, hot water, ventilation and lighting, less any energy generated on site, for example by solar panels. It's adjusted for floor area, so it doesn't depend on size for a given type of building.

The calculation compares the building with a reference building: the same size, shape and use, built to a set standard. It rates the building itself, its fabric and services, rather than how much energy the occupier actually uses. That's why it's called an asset rating.

How is a commercial EPC produced?

An energy assessor who belongs to an approved accreditation scheme surveys the building, including a site inspection, and works out the layout and the use of each space. The data goes into government-approved software: the Simplified Building Energy Model (SBEM) or a Dynamic Simulation Model (DSM) for more complex buildings. The software produces the certificate and its recommendation report.

The EPC is only valid once it's lodged on the central register, which gives it its certificate reference number. If you disagree with an EPC, the guide says to contact the assessor first and then their accreditation scheme; both are named on the certificate.

How long does a commercial EPC last?

10 years from lodgement, or until a newer EPC is lodged for the building, whichever comes first: only the most recent certificate is valid. Data stays on the register for 20 years, so a building can have several old certificates. An owner, landlord or tenant can commission a fresh EPC at any time, and once lodged it becomes the current one.

An EPC lasts 10 years. The register's data download has no expiry date, so we estimate it as the lodgement date plus 10 years. Lapsed means that date has passed.

Lapsed certificates are common in industrial property. Of the 38,148 industrial and warehouse buildings over 1,000 m² on the register, 7,340 had a latest EPC that had already lapsed at the snapshot (30 Sep 2026). A lapsed EPC still shows the building's last assessed rating, but a new one is needed for the next sale or letting.

When does a commercial building need an EPC?

GOV.UK lists when you must have one: when you rent out or sell the premises; when a building under construction is finished; and when a building is changed to have more or fewer separate parts, with new or extended fixed heating, air conditioning or mechanical ventilation. You can be fined £500 to £5,000, based on the rateable value, for not making one available to a prospective buyer or tenant.

Since 9 January 2013, the asset rating must also be stated in commercial adverts for a sale or letting where one is available. A building over 500 m² that the public visits frequently must display its EPC once one has been produced for a sale, letting or construction.

Which industrial buildings don't need an EPC?

GOV.UK lists several exemptions. For industrial property, the important ones are:

• an industrial site, workshop or non-residential agricultural building that doesn't use much energy. The 2016 definition reproduced in the landlord guidance covers spaces where the air isn't conditioned, naming storage and warehouses where the air isn't fully heated or cooled, even if there are local heaters for people at work stations;
• a stand-alone building with a total floor area under 50 m²;
• a temporary building that will be used for 2 years or less;
• a building due to be demolished, with the relevant consents in place.

In a block of units, DCLG's guide gives the example of a unit with no conditioned space needing no EPC, while a unit with only a heated office gets one reflecting the conditioned space. Whether a particular building qualifies is a judgement for the owner and their advisers; the government says it can't advise on individual buildings.

What does the recommendation report show?

Every EPC comes with a recommendation report listing improvements suited to the building. Each has an indicative payback: short term (under 3 years), medium term (3 to 7 years), long term (over 7 years), or other recommendations based on the assessor's knowledge. For MEES, the measures in this report are the starting point for the 7-year payback test. See how to improve an industrial unit's EPC.

Can a rating change without any work being done?

Yes. The landlord guidance notes that the methods behind EPC calculations are updated from time to time, so a building's band can change on a new assessment even if nothing about the building has changed. It suggests landlords take advice on the rating a new EPC would give before deciding what to do.

What floor area does an EPC use?

As declared on the EPC, in m² with sq ft alongside. The proposed EPC B standard would cover buildings over 1,000 m² (10,764 sq ft). The EPC can cover a whole building or a part of one designed or altered to be used separately, such as one unit in a terrace, so the floor area may not match the whole building's.

Where are the most C to E rated industrial buildings?

Across England and Wales, 25,619 industrial and warehouse buildings over 1,000 m² (10,764 sq ft) have a latest EPC rated C, D or E: 94.02 million m² (1.01 billion sq ft) of floorspace that meets today's E minimum but falls short of the EPC B standard proposed for 2031. Another 1,037, with 3.57 million m² (38.4 million sq ft), are rated F or G, below today's minimum. 11,492 are rated B or better. (EPC register, snapshot 30 Sep 2026; general industrial and storage or distribution uses.)

The local authorities with the most industrial floorspace rated C to E are Birmingham, West Northamptonshire, Leeds, Sandwell, North Northamptonshire, Bradford, County Durham, Kirklees, Wakefield, Milton Keynes. Every authority is on the MEES map.