Finance Editor, Kael Tripton Ltd - LBS MBA - Verified against FCA Handbook: 14 June 2026
Quick answer
MEES Regulations prohibit letting commercial property with an EPC rating of F or G from April 2023. The minimum is E. Penalties for non-compliance: up to PS150,000 for leases of 3 months or more. The proposed upgrade to a minimum B rating by 2030 is under consultation but not yet confirmed in legislation.
What Are MEES Regulations for Commercial Property?
Direct answer
What is the minimum EPC rating for commercial property under MEES?
The minimum EPC rating for commercial rented property in England and Wales is E under MEES Regulations (legislation.gov.uk/uksi/2015/962). F and G-rated commercial properties cannot be let under any lease from April 2023. Penalties up to PS150,000 for leases of 3 months or more. Exemptions are available for high-cost improvements, devaluation risk and third-party consent refusal.
Commission an EPC for your commercial property
EPCs for commercial properties must be produced by an accredited non-domestic energy assessor. Find one at the EPC register: epcregister.com.
Check the current rating
If the rating is F or G, the property cannot be let under any lease as of April 2023 unless an exemption applies.
Identify improvement measures
Use the EPC recommendations report to identify cost-effective improvements to reach an E rating.
Apply for third-party funding
Some improvement costs may be funded through energy efficiency schemes. Check the current availability of government schemes.
Register an exemption if applicable
If the property genuinely cannot be improved to E, register the appropriate exemption on the PRS Exemptions Register before continuing to let.
| Lease type | Penalty for F/G rating | Upper cap |
|---|---|---|
| Less than 3 months | PS2,000 or 10% of rateable value (higher) | PS150,000 |
| 3 months or more | PS10,000 or 20% of rateable value (higher) | PS150,000 |
| Continuing to let F/G without exemption | Same as above + public register listing | PS150,000 |
| Registered exemption | No penalty | N/A |
Related KT guides
- EPC Regulations for Domestic Landlords
- Part L Energy Efficiency Standards
- Energy Supplier Reviews
- All UK Regulations Guides
Frequently Asked Questions
What are MEES Regulations for commercial property?
The Minimum Energy Efficiency Standards (MEES) Regulations (EPC Regulations, Energy Efficiency (Private Rented Property)(England and Wales) Regulations 2015) apply to non-domestic (commercial) rented property as well as domestic. For commercial property, landlords were prohibited from granting new leases to properties with an EPC rating of F or G from April 2018, and from continuing to let them from April 2023. As of June 2026, the government has consulted on upgrading the minimum to B by 2030 for commercial properties but no final confirmation has been made.
What is the current minimum EPC rating for commercial property?
As of June 2026, the minimum EPC rating for commercial rented property in England and Wales is E under the MEES Regulations. F and G-rated commercial properties cannot be let under any lease (new or existing) unless an exemption applies. The proposed upgrade to a minimum B by 2030 is under consultation but has not been confirmed in legislation.
What exemptions apply to MEES for commercial property?
MEES exemptions for commercial property include: the high cost exemption (where the cost of recommended improvements exceeds PS3,500 including third-party funding); the all improvements made exemption (where all relevant improvements have been made but the property still cannot reach E); the devaluation exemption (surveyor certifies improvements would reduce market value by more than 5%); the third-party consent exemption (where a superior landlord or local authority refuses consent); and the new landlord exemption (6 months from becoming landlord). Exemptions must be registered on the PRS Exemptions Register.
What are the penalties for MEES non-compliance in commercial property?
Local authorities can impose financial penalties for MEES breaches in commercial property. For a lease of less than 3 months, the penalty is PS2,000 or 10% of the rateable value (whichever is higher, up to PS150,000). For a lease of 3 months or more, the penalty is PS10,000 or 20% of the rateable value (whichever is higher, up to PS150,000). Local authorities can also publish details of the breach for up to 12 months.
Does MEES apply to all commercial properties?
MEES applies to most non-domestic privately rented property in England and Wales. Exemptions from the EPC requirement (and therefore from MEES) include: listed buildings where compliance would unacceptably alter their character, temporary buildings used for less than 2 years, stand-alone buildings with less than 50m2 of useful floor space, and buildings due to be demolished. Industrial sites, workshops and non-residential agricultural buildings may also be exempt where meeting EPC standards would be disproportionately expensive.
Primary sources
Kael Tripton Ltd is registered with the Information Commissioner's Office under registration number ZC135439.
