Under the Minimum Energy Efficiency Standards (MEES), most commercial buildings in England and Wales cannot be let if their EPC is F or G, unless a valid exemption is registered on the PRS Exemptions Register. Exemptions are a legitimate route, but only with the right evidence.
With the Government intending a much higher EPC B standard for larger buildings from 2031, understanding exemptions matters more than ever. See our MEES 2031 article.
The main exemptions
**All relevant improvements made:** every recommended improvement that is cost-effective has been carried out, but the building is still below the standard.
**Seven-year payback:** the remaining improvements would not pay back in energy savings within seven years.
**Consent refused:** third-party consent, such as from a tenant, lender or planning authority, was needed and refused or given with unreasonable conditions.
**Devaluation:** an independent surveyor's report shows the works would reduce the property's market value by more than 5%.
**New landlord:** a short, temporary exemption for someone who has recently become the landlord.
What evidence you need
Each exemption needs supporting documents, such as recommendation reports, quotes, payback calculations, consent refusals or valuation reports. Most exemptions last five years and are personal to the landlord, so they do not automatically pass on a sale.
Registering without proper evidence leaves you exposed to penalties if challenged.
Common mistakes
Assuming an exemption without checking the numbers; relying on an old EPC with default inputs; forgetting that exemptions expire; and missing that a better-evidenced EPC might lift the rating to E without any works at all.
Check the rating first
Before spending on works or an exemption, check whether the EPC is accurate. Many older certificates use defaults that understate performance. A reassessment, sometimes using Dynamic Simulation Modelling, can change the picture.
General guidance only, not legal advice.
Frequently asked questions
- Can I let a commercial property rated F or G?
- Only if a valid MEES exemption is registered on the PRS Exemptions Register, or the letting falls outside the regulations.
- How long does a MEES exemption last?
- Most last five years and are personal to the landlord who registered them.
- What is the seven-year payback test?
- An exemption where the cost of the remaining improvements would not be recovered through energy savings within seven years.
- Does an exemption transfer when I sell?
- Generally no. A new owner usually needs to register their own exemption.