Commercial MEES Update 2026: What the Proposed EPC B Target Means for Landlords
Commercial landlords have a revised timetable to consider when planning energy improvements. The government’s latest announcement focuses on larger rented buildings, with a proposed EPC B standard from 2031.
For landlords and managing agents, the first step is to understand the current requirements and which properties could be affected by future changes.
What are the current commercial MEES requirements?
The minimum EPC rating remains E for commercial rented properties within the scope of the Minimum Energy Efficiency Standards in England and Wales.
Since 1 April 2023, this requirement has applied to continuing lettings as well as new leases and renewals. Properties rated F or G must be improved to meet the minimum standard or have a valid registered exemption where applicable.
What has changed?
In its interim response published on 18 June 2026, the government set out its intended approach:
• Privately rented commercial buildings over 1,000 m² would need to achieve EPC B from 2031, where cost effective.
• Buildings below 1,000 m² would remain subject to the current EPC E minimum.
• The previously proposed EPC C milestone for 2027 will not be taken forward.
• Existing flexibility, including the seven year payback test and exemptions, would remain.
The higher standard still requires secondary legislation before it takes effect. Further details on implementation of the floor area threshold are also due, so landlords should avoid making assumptions about buildings divided into separate lettings or properties close to the threshold.
Why start planning now?
For larger properties, our advice is to review the EPC before committing to refurbishment or replacing major equipment. This gives landlords an opportunity to coordinate improvements with lease events, maintenance programmes and periods when premises are vacant.
A staged plan can also help avoid spending money on work that delivers only a small improvement when a different combination of measures could achieve a better result.
Understand your options before commissioning work
At NRG Assessments, we use building energy modelling to compare potential improvements and assess their effect on the EPC rating before installation.
Depending on the property, the assessment may consider lighting, insulation, heating and cooling systems, controls and solar panels. Measures can be tested individually and together to identify a practical improvement strategy.
Each building needs its own assessment. The appropriate solution for an office may be very different from the solution for a warehouse, workshop or retail unit. Predicted EPC improvements should also be considered alongside installation costs, disruption and the building’s operational needs.
What should commercial landlords do next?
Start by reviewing your portfolio’s EPC ratings, recorded floor areas and expiry dates. Identify any F or G rated properties requiring attention under the current rules, then prioritise larger buildings that may need a longer term improvement plan.
Gathering plans, insulation records and equipment specifications will also help your assessor establish an accurate starting point.
Commercial EPC and MEES support from NRG Assessments
NRG Assessments provides commercial EPCs and MEES improvement assessments across the West Midlands, Staffordshire and Derbyshire, with wider coverage available for larger projects and portfolios.
Whether you need to address an F or G rating or explore a route towards EPC B, we can help you understand the options before you invest.
