If you let a shop, office, workshop or other commercial unit in England or Wales, there is a minimum energy rating it must meet. This page sets out the rule as it stands, which lettings it covers, and what to do if your unit falls short.
The rule: E
Privately rented non-domestic property must have an EPC rating of E or better. A unit rated F or G is below the minimum, and cannot lawfully be let unless a valid exemption has been registered for it.
This is the Minimum Energy Efficiency Standard, often shortened to MEES. It is set by the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015.
Since when
The rule came in two stages:
- 1 April 2018: granting a new tenancy, or extending or renewing an existing one, required E.
- 1 April 2023: every existing let had to meet E as well.
So since April 2023 it does not matter when the lease started. If the unit is let and rated F or G without an exemption, it is in breach.
Which lettings it covers
The rule applies to privately rented non-domestic property. Some lettings sit outside it:
- tenancies granted for a fixed term of 6 months or less, unless the agreement provides for renewal or extension beyond 6 months from its start, or the tenant has already been in occupation for a continuous period of more than 12 months;
- tenancies granted for a fixed term of 99 years or more;
- property that is not legally required to have an EPC.
If you are unsure whether your lease is covered, take advice before relying on an exclusion.
You need an EPC to let at all
Before you even get to the rating, a commercial unit offered to let needs a valid EPC. An EPC is valid for 10 years. Failing to make one available to a prospective tenant or buyer can lead to a fine of £500 to £5,000, depending on the rateable value of the building.
If your certificate has lapsed, see what an expired commercial EPC means.
What makes an F or G lawful: exemptions
A unit rated F or G can be let lawfully if an exemption is registered on the PRS Exemptions Register. The exemption types are:
- 7-year payback;
- all relevant improvements made;
- wall insulation;
- third-party consent;
- devaluation (where the works would reduce the value by more than 5%);
- recently became a landlord.
Most last 5 years; the new-landlord exemption lasts 6 months. Each one has to be registered; none applies automatically. See MEES exemptions for commercial property.
What happens if you let below E
Letting in breach can bring a financial penalty linked to the rateable value, up to £50,000 for a breach of under three months and up to £150,000 for three months or more, plus a publication penalty. The full figures are on MEES penalties for commercial property.
Smaller units and what comes next
The Government has said that for buildings under 1,000 square metres "the intention is for buildings below 1,000 square metres to continue to be subject to the current minimum standard of EPC E". That is a statement of intention, not a change in the law. For most shops, offices and small units, E remains the line to plan around.
If your unit is rated exactly E, you meet the rule today, but with no margin. See what an E rating means for your unit.
How common F and G are
On our count from the Energy Performance of Buildings Register (load dated 1 October 2026), across England and Wales:
- 4,465 let units of up to 1,000 m² are rated F or G on a valid certificate;
- 58,741 let units have an EPC that has expired;
- 48,992 sit exactly on E.
"Let" here means at least one certificate for the unit was lodged for letting. That is evidence a unit has been let, not a count of every let unit, and we cannot see exemptions. An F or G unit in these figures may be lawfully let under one. How we arrive at the numbers is set out on how we count, and your council's figures are under every area.
In short
- Let commercial property must be rated E or better.
- That has applied to every let since 1 April 2023.
- F and G are only lawful with a registered exemption.
- You need a valid EPC before you market a unit to let.
Sources
- Non-domestic private rented property: minimum energy efficiency standard, landlord guidance, GOV.UK, updated 5 May 2026. Checked 30 September 2026.
- Energy Performance Certificates for your business premises, GOV.UK. Checked 30 September 2026.
- The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, regulation 41. Checked 30 September 2026.
- Minimum Energy Efficiency Standards (MEES) in the non-domestic Private Rented Sector: interim response, GOV.UK, 18 June 2026. Checked 30 September 2026.
Checked against GOV.UK and the regulations on 2026-10-06. More help