What every landlord of warehouses, factories, offices and commercial premises needs to know about Minimum Energy Efficiency Standards compliance.
The Minimum Energy Efficiency Standards (MEES) were introduced under the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015. They set a minimum energy performance standard for privately rented non-domestic properties in England and Wales, applying to all buildings let under a lease or tenancy agreement.
Since 1 April 2023, all non-domestic rental properties must achieve a minimum EPC rating of E. This applies to both new lettings and existing tenancies. Landlords of warehouses, factories, workshops, offices, retail units, hotels and all other commercial premises must ensure their properties meet this standard or face significant financial penalties.
The regulations were introduced as part of the UK government's strategy to reduce carbon emissions from the building stock. Non-domestic buildings account for a substantial proportion of the UK's total energy consumption, and many older industrial and commercial properties have poor energy performance due to minimal insulation, inefficient heating systems and outdated lighting.
MEES first applied to new lettings and lease renewals under the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015. Landlords could no longer grant new leases on properties rated below EPC E.
MEES extended to all continuing tenancies. All non-domestic private-rented properties in England and Wales must meet at least EPC E unless a valid exemption is registered.
DESNZ published its interim response to the 2019 and 2021 non-domestic MEES consultations. Confirmed direction: the previously proposed 2027 EPC C interim milestone will not be taken forward; a proposed EPC B by 2031 will apply to buildings over 1,000 m² only, where cost-effective. Buildings under 1,000 m² remain at EPC E with no further deadline currently defined.
Under the DESNZ interim response, private-rented non-domestic buildings over 1,000 m² are proposed to reach EPC B by 2031, where cost-effective. This will only take effect following the successful passage of secondary legislation through Parliament — it is not yet law. A full government response and updated guidance are pending.
The Regulations are enforced by the Local Weights and Measures Authority. Financial penalties are set out in Regulation 39 of the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 and are calculated by reference to the property's rateable value and the duration of the breach:
10% of rateable value
Minimum: £5,000 | Maximum: £50,000
20% of rateable value
Minimum: £10,000 | Maximum: £150,000
Alongside the financial penalty, the enforcement authority may publish a notice of non-compliance on the PRS Exemptions Register, which is publicly searchable and increasingly checked by institutional tenants, commercial lenders and insurers as part of due diligence. Non-compliance can therefore also affect mortgageability, marketability and rent negotiations.
Primary sources: DESNZ non-domestic landlord guidance (last updated May 2026); DESNZ interim response on non-domestic MEES EPC B implementation (June 2026); Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015. This page is a guide, not legal advice.
Industrial buildings frequently present MEES compliance challenges. Many warehouses, factories and workshops in Devon, Cornwall, Somerset and Dorset were constructed before modern insulation and energy efficiency standards existed. Older steel-frame buildings with single-skin cladding, uninsulated roofs and outdated heating systems commonly rate E, F or G on the EPC scale.
If your industrial property currently rates F or G, you must either improve it to achieve at least an E rating or register a valid exemption before letting it. Our industrial EPC assessments include detailed improvement recommendations showing which measures will achieve MEES compliance most cost-effectively.
Common routes to MEES compliance for industrial buildings include:
Where a commercial property cannot cost-effectively be improved to an E rating, landlords may qualify for an exemption. All exemptions must be registered on the PRS Exemptions Register and are valid for 5 years.
All energy efficiency improvements with a simple payback of 7 years or less have been carried out, but the property still rates below E. This is the most commonly used exemption for industrial buildings.
A third party whose consent is required for improvements (such as a tenant, planning authority or mortgage lender) has refused permission despite reasonable efforts to obtain it.
An independent RICS surveyor has provided a report stating that the required improvements would reduce the market value of the property by more than 5%.
A temporary 6-month exemption for landlords who have recently become the landlord of a non-compliant property (for example, through inheritance).
The Minimum Energy Efficiency Standards (MEES) regulations — set out in the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 — require that all non-domestic rental properties in England and Wales achieve a minimum EPC rating of E. Since 1 April 2023 this applies to all continuing commercial tenancies, not just new lettings. Landlords cannot legally let properties rated F or G without a valid exemption registered on the PRS Exemptions Register.
No. In its June 2026 interim response DESNZ confirmed the previously proposed 2027 EPC C interim milestone for non-domestic MEES will not be taken forward. The current Band E statutory minimum remains in force. The proposed future standard is EPC B by 2031 — but only for buildings over 1,000 m², where cost-effective, and only once secondary legislation passes Parliament. Buildings under 1,000 m² remain at Band E with no further deadline currently defined.
Under the DESNZ June 2026 interim response, the government intends that from 2031 all privately rented non-domestic buildings over 1,000 m² in England and Wales will need to reach a minimum EPC B rating, where cost-effective. The existing 7-year payback exemption and other flexibility mechanisms will remain. Buildings under 1,000 m² are intended to continue at the current EPC E standard, with no further set deadline beyond that. The EPC B requirement is not yet law — it will only take effect following the successful passage of secondary legislation. Landlords should watch for a forthcoming full government response and updated guidance.
Financial penalties are set out in Regulation 39 of the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 and enforced by the Local Weights and Measures Authority. For a breach of the letting prohibition of less than 3 months, the penalty is 10% of the property's rateable value (minimum £5,000, maximum £50,000). For a breach of 3 months or more, the penalty rises to 20% of the rateable value (minimum £10,000, maximum £150,000). A publication penalty (notice of non-compliance on the PRS Exemptions Register) may also be issued.
Yes. Non-domestic MEES exemptions (per the DESNZ landlord guidance) include: (1) the 7-year payback exemption — where the cost of a recommended measure or package is greater than the value of expected energy-bill savings over 7 years; (2) the "all improvements made" exemption — where all relevant improvements have been installed and the property still fails; (3) the wall insulation exemption — where a recognised expert confirms cavity, external or internal wall insulation would harm the fabric or structure; (4) the third-party consent exemption — where a required consent from a tenant, superior landlord, mortgagee, freeholder or planning department cannot reasonably be obtained; (5) the property devaluation exemption — where a RICS-registered valuer confirms the improvement would devalue the property by more than 5%; and (6) a 6-month temporary exemption where a person has recently become the landlord under specified circumstances. All exemptions must be registered on the PRS Exemptions Register before they can be relied on.
Yes. Non-domestic MEES applies to all privately rented non-domestic property in England and Wales that is legally required to have an EPC and is let on a "term certain" between 6 months and 99 years — including warehouses, factories, workshops, distribution centres and light-industrial units. Industrial buildings are a common area of MEES exposure because single-skin steel cladding and older gas radiant heating typically produce lower SBEM ratings.
Common cost-effective improvements for commercial and industrial buildings include upgrading to LED lighting with modern controls, adding roof or cavity wall insulation, replacing inefficient heating and hot-water plant (including air-source heat pumps), improving heating controls and zone management, sealing air-leakage paths, and installing solar PV. Our Non-Domestic Energy Advice Report (NDEAR) ranks all applicable measures against the statutory 7-year payback test so you can distinguish measures inside and outside the statutory obligation.
Most non-domestic MEES exemptions are valid for 5 years from the date of registration on the PRS Exemptions Register. After 5 years the exemption expires and the landlord must either improve the property to at least Band E or register a new exemption if the qualifying conditions still apply. The 6-month temporary exemption for a person who has recently become the landlord is the notable exception. Exemptions do not automatically transfer to a new owner on sale — the new owner must either bring the property up to standard at that point or register a valid exemption in their own name.
Warehouse, factory and workshop assessments
How commercial EPC ratings are calculated
Distribution centres and storage facilities
Manufacturing plants and production facilities
Exeter, Plymouth, Barnstaple assessments
General guide to Energy Performance Certificates
Our assessors provide practical guidance for commercial and industrial landlords across Devon, Cornwall, Somerset and Dorset. Get your property assessed and receive tailored improvement recommendations.
For every commercial MEES advice engagement, we apply a systematic two-stage process: each candidate improvement measure is first modelled in isolation and ranked across five criteria (EPC points, energy saving, CO2, cost saving, payback), then the top-ranked measures are grouped into three cumulative implementation Rafts — priority, Band C target, and deep retrofit. This is how the NDEAR (Non-Domestic Energy Advice Report) reports we produce turn a single EPC into three costed, modelled pathways.
Read the full methodology