About Energy Performance Certificates (EPC's)
With a new law regarding commercial EPCs, it is now essential for any business with a property portfolio to consider what, if any, improvements need to be made in order for their properties to meet the new minimum energy efficiency standard.
From 1st April 2018, all commercial properties will be required to reach a grade ‘E’ or better on their EPC. For a limited time period, landlords will be able to continue to let out properties with an ‘F’ or ‘G’ rating but may not be able to renew a lease or sign up new tenants until they have an EPC report stating that their building is a grade ‘E’ or better.
After 1st April 2018, it will be unlawful to sell a commercial property if it has an ‘F’ or ‘G’ rating on its EPC.
From 1st April 2023, this law will apply to all commercial properties, including those under existing leases.
How to meet the new minimum energy efficiency standard
When measuring a commercial building’s energy efficiency, an PC assessor will look at the building’s asset. This consists of the building’s installed building services and its fabric. How much energy the current occupiers use is not included on a commercial building’s EPC.
An EPC is there to show how energy efficient the fabric of a commercial building is, as well as the installed ventilation, heating, cooling and lighting systems.
Buildings must reach a certain level of energy efficiency in order to achieve a grade ‘E’ or above.
LED lighting is a non-invasive and cost-effective way to pass an EPC.
The lighting systems within a building are one of the areas an EPC assessor will look at when calculating energy efficiency.
LED lighting can not only improve a building’s energy efficiency and result in a 50-80% reduction in energy usage and costs but can also give building owners the extra peace of mind that goes hand-in-hand with long-lasting lighting.
An LED lighting installation with smart controls and sensors can actually cut a building’s lighting energy costs by 80-90%.
Not only can you make significant savings on your energy bills and maintenance costs by installing LED lighting but it can also make your building more energy efficient in order to help it meet the new EPC regulations.
Potential savings from changing to LED lighting:
Depending on factors such as the size of the building and the building usage, the payback term on LED lighting can be relatively quick.
For example, let’s take two businesses with similar lighting costs and call them business A and business B.
Business A decides to stick with its traditional lighting, which consists mainly of florescent lighting. Their energy bills come in at £11,000 per year. Over 7 years, assuming energy prices don’t go up (which is unlikely), business A will spend £77,000 on lighting energy.
Business B also spends around £11,000 per year on lighting energy but chooses to upgrade to LED lighting. The quote to do this comes in at £25,000.
After upgrading to LED lighting, business B’s lighting energy costs come in at £2,750 per year. A 75% reduction is typical when installing LED lighting. Over 7 years, this will (again, assuming no energy price rises) come in at £19,250. With energy savings of £8,250 per year, the £25,000 cost of installing LED lighting would ‘payback’ in just over 3 years.
Fully Funded Projects
Here at Amazing Electricians Ltd, we offer LED lighting solutions designed to help your building become more energy efficient and to meet the new minimum energy efficiency standard.
Our fully funded projects mean that we are able to supply and install LED lighting for our commercial clients, without the need for capital. Instead, you are able to use the savings you make on energy to pay for the entire project.
For example, if we take business B above, their lighting energy costs reduced from £11,000 per year to £2,750 per year. They then paid back £5,000 per year, spread out across the year, for 5 years, to cover the cost of the £25,000 project. This still gives them a £3,250 cash gain, per year. By years 6 and 7, there is nothing left to pay, so they should have a cash gain of £8,250 per year (assuming energy costs stay the same).
All of our LED luminaires come with a minimum 5-year on-site replacement warranty and a minimum 50,0000-hour lifespan - which works out as 5-14 years, depending on usage.
Public Sector Funding
Interest free public sector funding to install LED lighting and other energy efficient technology is available for schools, colleges, NHS trusts and local authorities.
This Department of Education approved incentive, means that you are able to pay nothing upfront out of your budget and then use your energy savings to pay for your LED lighting.
For example, you may be paying £10,000 per year in lighting energy costs. Installing LED lighting would cost nothing upfront and your new lighting energy spend could be £2,500, saving you £7,500 per year. You would then pay back £5,000 per year for the next 4 years to cover the cost but this would still result in a cash gain of £2,500 per year.
Under the Enhanced Capital Allowances (ECA) scheme for energy saving technologies, LED lighting may be eligible for 100% tax relief.
An EPC is required before any commercial building is sold, let or built.
Want to know more about how you could meet the new minimum energy efficiency standard? Our experienced team specialise in helping UK organisations to significantly reduce their energy consumption and costs. Get in touch today.
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Amazing Electricians Limited
Canalside House, 7 Sandy Lane Business Park,
Sandy Lane, Coventry,