How to improve an industrial unit's or warehouse's EPC rating
Updated . Register figures: snapshot 30 Sep 2026.
Start with the recommendation report that comes with the EPC: it lists improvements suited to that building, grouped by payback (under 3 years, 3 to 7 years, over 7 years). For industrial buildings, the recommendations that most often make a district's top five in our data are: consider installing solar water heating; consider installing building mounted wind turbine(s); carry out a pressure test, identify and treat identified air leakage; consider installing PV. Once the work is done, commission a new EPC so the register shows the new rating.
What decides an industrial building's EPC rating?
The asset rating is a CO2-based index of the energy a building is expected to use for heating, hot water, ventilation and lighting, less any energy it generates, compared with a reference building of the same size, shape and use (DCLG). So the levers are the same: the building's fabric (insulation, glazing, air-tightness), its services (heating, its controls, lighting) and any on-site generation.
It's a model of the building under standard conditions, not a reading of the meter, so how much energy the occupier actually uses doesn't change it. Changing the building or its fixed services can.
Where should I start?
With the recommendation report that comes with every EPC. It lists the improvements the assessment found appropriate for that building, each with an indicative payback:
| Group | Indicative payback |
|---|---|
| Short term | Less than 3 years |
| Medium term | 3 to 7 years |
| Long term | More than 7 years |
| Other | Based on the energy assessor's knowledge |
For MEES, these are the measures that matter. The landlord guidance says the "relevant energy efficiency improvements" for a sub-standard building are those recommended in the EPC's recommendation report, a surveyor's report or a Green Deal advice report, and the 7-year payback test is applied to them.
What do assessors recommend most for industrial buildings?
Across the postcode districts in our data, these are the recommendations that most often appear in a district's top five, most common first, in the register's own wording (industrial and warehouse buildings of any size, latest EPC per building, snapshot 30 Sep 2026):
- Consider installing solar water heating (EPC-R3)
- Consider installing building mounted wind turbine(s) (EPC-R2)
- Carry out a pressure test, identify and treat identified air leakage. Enter result in EPC calculation (EPC-E7)
- Consider installing PV (EPC-R4)
- Consider replacing T8 lamps with retrofit T5 conversion kit (EPC-L5)
- Add optimum start/stop to the heating system (EPC-H7)
- Some windows have high U-values - consider installing secondary glazing (EPC-E5)
- Introduce HF (high frequency) ballasts for fluorescent tubes: Reduced number of fittings required (EPC-L7)
Some of these are standard recommendations that appear on many certificates, and not every one suits every building: a recommendation is a starting point, not a specification. Assessors' free-text recommendations are left out of this list, because each is worded differently.
District-by-district recommendation counts, heating fuels and rating mixes are in district data on the Area Data plan.
How much does it cost to improve an industrial building's EPC?
There's little published evidence, and the government has published no cost figure for the proposed 2031 standard. These are the figures we've found, all from third parties and none of them ours. They're ranges and examples, not quotes:
Swipe the table sideways for all 3 columns.
| Source | What it covers | Figure |
|---|---|---|
| Addleshaw Goddard, July 2026 | Retrofitting logistics buildings towards EPC B | "£20 to £70+ per square metre" (about £1.86 to £6.50+ per sq ft); £200,000 to £700,000 or more for a typical 10,000 m² (107,639 sq ft) warehouse. It gives no underlying source. |
| CCA Environmental, June 2026 | Commercial property, E to B | "typically ranges from £50 to £150 per square metre" (about £4.65 to £13.94 per sq ft). It adds that concrete, publicly available cost data "remains scarce". |
| Vital Direct, June 2026 | Case study: two 330 m² (3,552 sq ft) industrial units, D to B | "approximately £35,000 to £60,000 per unit". Below the 1,000 m² threshold, and written against the earlier 2027 and 2030 timetable. |
| MHCLG, December 2024 | A non-domestic EPC | £400: the government's assumption, from industry feedback in 2022 at 2024 prices, weighted by floor area |
| Property Tax Partners | An EPC for a building over 1,000 m² | £600 to £1,200+ excluding VAT; complex buildings modelled with DSM £1,000 to £1,500+ |
How far are industrial buildings from B?
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.)
Of the 25,619 rated C to E, 13,791 (53.8%) are rated C, one band from B. The rest are D or E. 1,037 buildings over 1,000 m² are F or G and need to reach E before they can be let at all.
Swipe the table sideways for all 5 columns.
| Band | Asset rating | Buildings | Floor area (m²) | Floor area (sq ft) |
|---|---|---|---|---|
| A+ | Below 0 | 594 | 3,854,789 | 41,492,603 |
| A | 0 to 25 | 3,757 | 32,798,350 | 353,038,501 |
| B | 26 to 50 | 7,141 | 38,375,582 | 413,071,327 |
| C | 51 to 75 | 13,791 | 54,110,235 | 582,437,722 |
| D | 76 to 100 | 8,567 | 28,847,653 | 310,513,553 |
| E | 101 to 125 | 3,261 | 11,062,769 | 119,078,654 |
| F | 126 to 150 | 440 | 1,512,574 | 16,281,211 |
| G | Over 150 | 597 | 2,057,261 | 22,144,173 |
Does the work have to pay for itself?
For today's E minimum, a landlord doesn't have to make improvements that fail the 7-year payback test: if the energy savings over 7 years from installation are less than the cost, the landlord can register a 5-year exemption, with 3 installer quotes and the calculations as evidence. The government's interim response says the test remains under the EPC B standard proposed for 2031. See MEES exemptions.
Who needs to agree to the work?
Improvements can need consent from a tenant, a superior landlord, a lender, a freeholder or the planning authority. If consent is refused despite reasonable efforts, the landlord can register a third-party consent exemption. Planning permission may be needed for some external work; for listed buildings, the guidance names external wall insulation, replacement glazing, solar panels and external air source heat pumps as examples of measures that may alter character or appearance.
Leases often say who pays for which works. The landlord guidance advises landlords and tenants to check their lease and take advice.
What happens after the work?
There's no automatic requirement to get a new EPC after improvement works. The landlord guidance recommends one anyway: a fresh EPC reflects the improvements and is likely to be the easiest way to show the building complies. Once lodged, it replaces the old certificate on the register.
Questions people ask
What's the cheapest way to improve a warehouse's EPC rating?
Start with the short-term payback measures on the EPC's recommendation report: those the assessment expects to pay back in under 3 years. Which are cheapest depends on the building.
Which recommendations count for MEES?
The relevant energy efficiency improvements are those recommended in the EPC's recommendation report, a surveyor's report or a Green Deal advice report. The 7-year payback test is applied to them.
How much does it cost to take an industrial building to EPC B?
Published figures are thin. Addleshaw Goddard quotes £20 to £70+ per m² for logistics buildings, and CCA Environmental £50 to £150 per m² for commercial property going from E to B. Neither is a quote, and the government has published no cost figure for the 2031 proposal.
Do I need a new EPC after improvements?
It isn't automatically required, but the landlord guidance recommends one: it records the new rating and is likely to be the easiest way to show the building complies.
Can I improve a building if the tenant objects?
If the work needs the tenant's consent and they refuse, you can register a third-party consent exemption, which lasts until that tenancy ends or is assigned.
Sources
- DCLG: A guide to Energy Performance Certificates for the construction, sale and let of non-dwellings (GOV.UK, updated December 2017)
- DESNZ: Non-domestic private rented property: minimum energy efficiency standard, landlord guidance (GOV.UK, updated 5 May 2026)
- The Non-Domestic Private Rented Property Minimum Standard: guidance for landlords and enforcement authorities (PDF, GOV.UK)
- DESNZ: Minimum energy efficiency standards (MEES) in the non-domestic private rented sector, interim response (GOV.UK, 18 June 2026)
- Addleshaw Goddard: Logistics and EPC B by 2031, is it achievable? (29 July 2026)
- CCA Environmental: MEES 2031 EPC B compliance guide for commercial buildings (19 June 2026)
- Vital Direct: From EPC D to B, commercial industrial unit retrofit case study (1 June 2026)
- MHCLG: Energy Performance of Buildings reform, consultation impact assessment (PDF, December 2024)
- Property Tax Partners: Commercial EPC cost (undated, checked 2026)
Register figures come from the government's EPC register for England and Wales, published under the Open Government Licence. How we got these figures.
This guide summarises the rules to help you find your way. It isn't legal advice: check the current guidance on GOV.UK, or take advice, before acting on it.