Renewable technologies and contractors are helping building owners and managers address the MEES challenge.
With a new government now in place, the UK’s drive to net zero and greater use of renewable energy has been reinvigorated.
The other side of that coin is a sharp focus on energy use in buildings – we must reduce energy consumption to make net zero achievable alongside making renewable energy generation feasible.
There are already regulations in place that set out a clear path to building energy efficiency. One of the most impactful has been Minimum Energy Efficiency Standards, or MEES.
Under the current iteration, in place from April 2023, all non-domestic private rented properties must achieve a minimum EPC rating of E. It’s important to note that the rule applied to all leases – not just on renewal with a new tenant.
Half the respondents said they would “walk away from a deal” if a building lacked features to reduce energy consumption
Imma Boada National M&E Manager
Delaying tactics
In 2020, the previous UK government mapped a proposed ‘future trajectory’ for non-domestic MEES. This included a proposal that non-domestic MEES would be updated to set a minimum EPC of C in 2027 and B in 2030.
It’s important to note that at the end of 2023, the government had not firmed up these proposals, and was suggesting a postponement of any changes to MEES to allow the property sector more time to prepare.
In March 2024, RICS called for greater clarity on the proposed trajectory for non-domestic MEES, noting that the deadlines are “increasingly unrealistic”.
A wave of retrofits
The new government seems more inclined to push forward with higher targets, but whatever the future of non-domestic MEES, even the proposed updates have set in motion a wave of building retrofits focused on improving building energy efficiency.
There is a significant incentive to get ahead of future requirements: buildings which don’t meet future standards will quickly become stranded assets.
Not only that, but the commercial property sector is now seeing rising tenant demand for energy efficient and sustainable space.
Property specialist CBRE noted in its 2023 survey of investors, lenders and occupiers that 84% of respondents say reduced building energy consumption has an impact on real estate decisions – with half saying they would “walk away from a deal altogether if a building lacked these features.”
Upgrade your HVAC
HVAC systems are often key areas to consider for energy-focused retrofitting. Replacing older systems with modern equipment will almost certainly lead to better energy performance.
In addition, it can be an opportunity to consider modern approaches to air conditioning such as the unique Hybrid VRF (HVRF) which uses water to carry heating and cooling around the building.
This makes it an ideal option for projects which are phased over time, since the system can be expanded in phases more easily than traditional VRF.
Electrification of buildings during refurbishment is now widely applied, since it allows for the use of on-site renewable energy generation such as solar PV, as well as low-carbon, energy efficient heating technologies such as heat pumps. These are now capable of providing heating and high-temperature hot water, even in high-use buildings including hotels and gymnasiums.
Help is at hand
Mitsubishi Electric has produced a guide to HVAC Retrofit which outlines several possible approaches, and their impact on energy use. You can download a free copy from our library.
One of the most important steps to take in the retrofit process is talking to experts who can offer experienced advice on selecting the right products for your building, and your budget.
M&E contractors can provide practical solutions that will not only deliver on energy efficiency goals, but also improve the performance of HVAC systems – further enhancing the value of the building to tenants.
For building owners looking to improve energy performance, starting sooner is always better than later. By taking a phased approach to building updates, budgets can be allocated over time. Meanwhile, energy savings will accumulate – and become more important if prices rise as they are predicted to.
Imma Boada is National M&E Manager
