MEES (Minimum Energy Efficiency Standards) regulations commercial property​

If you’re a commercial landlord in England or Wales, the Minimum Energy Efficiency Standards regulations should already be on your radar. But with evolving deadlines, exemption requirements, and the threat of significant penalties, many property owners still find themselves uncertain about exactly what’s required.

This guide breaks down everything you need to know about MEES for commercial property—from the basics of compliance through to practical steps you can take today to protect your portfolio.

Quick overview: what MEES means for commercial landlords

The Minimum Energy Efficiency Standards stem from The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015. These rules apply to most rented commercial property in England and Wales and set a legal floor for the energy performance of buildings you let to tenants.

Since 1 April 2018, landlords have been prohibited from granting a new lease, renewing, or extending a lease on any non-domestic property with an EPC rating below E—unless a valid exemption is registered on the government’s PRS Exemptions Register.

The scope widened significantly on 1 April 2023. From this date, the EPC E requirement also applies to all existing leases. This means it’s now unlawful to continue letting a “sub-standard” commercial property (rated F or G) without a registered exemption—regardless of when the lease originally started.

The UK government previously signalled plans to increase the minimum standard to EPC C by 2027 and EPC B by 2030. However, these proposals were paused in late 2023 and remain under review. Despite this uncertainty, landlords would be wise to plan for tighter standards in the medium term.

Non-compliance isn’t a minor technical breach. Penalties can reach up to 20% of the property’s rateable value, capped at £150,000 per property. Enforcement authorities may also publish the landlord’s details on a public register—a reputational risk that many commercial investors understandably want to avoid.

What are MEES regulations for commercial property?

MEES are legal minimum energy efficiency standards that apply specifically to “non-domestic private rented property” under the 2015 Regulations. The rules cover England and Wales only—Scotland and Northern Ireland operate under different regimes.

The regulations rely entirely on a property’s Energy Performance Certificate rating. Currently, a “sub-standard” commercial property is one with an EPC of F or G. If your building falls into this category and you want to let it, you must either improve its energy performance or register a valid exemption.

MEES fit within the UK’s broader climate framework, including the legal commitment to reach net zero greenhouse gas emissions by 2050. Commercial buildings account for roughly 20% of UK emissions, making the non domestic sector a key target for energy efficiency improvements.

While the rules originated from EU energy performance directives, they were retained after Brexit and remain fully in force. Landlords cannot assume these obligations lapsed when the UK left the EU.

Who does MEES affect?

• Commercial landlords and non domestic landlords with rented property
• Property investors and asset managers
• Lenders concerned with asset value and lettability
• Tenants (indirectly) who may face disruption from improvement works
• Property lawyers advising on transactions and lease drafting

For details on specific exemption categories, see the ‘Exemptions and the PRS Exemptions Register’ section below.

When MEES bites: EPC triggers, dates and situations

MEES only apply where the property is legally required to have an EPC. Understanding when this trigger occurs is essential for compliance planning.

When is a non-domestic EPC required?

• Construction of a new building
• Sale of a commercial property
• Letting or marketing a property for rent
• Certain major modifications affecting energy performance
• EPCs remain valid for 10 years from the date of issue

Key MEES dates for commercial property:

• 1 April 2018: New lettings and lease renewals of F or G rated non-domestic properties became prohibited (subject to exemptions)
• 1 April 2023: Continuing to let an F or G rated commercial property became unlawful, even where the lease predated 2018—unless an exemption applies

Important clarifications:

• If a building is genuinely not required to have an EPC (for example, certain listed buildings where compliance would unacceptably alter character, or stand-alone buildings under 50m²), MEES do not apply while that exemption from EPC duties remains valid
• A landlord does not need to improve a property solely because an EPC has expired if there’s no sale, letting, or major modification trigger—though refreshing EPCs and planning upgrades is usually sensible for marketability
• Empty properties not being let fall outside MEES, but the regulations apply the moment a new tenancy is granted and a valid EPC exists

Is your commercial property caught by MEES?

Not every commercial building falls within scope. This section helps you quickly assess whether the mees regulations apply to your asset.

Basic conditions for MEES to apply:

• The property must be non-domestic
• It must be privately rented (not owner-occupied)
• Located in England or Wales
• Required to have an EPC
• Let on a qualifying tenancy between 6 months and 99 years

Property types commonly within scope:

• Offices
• Retail shops and showrooms
• Industrial units
• Warehouses with office accommodation
• Leisure and hospitality premises
• Mixed-use buildings where commercial parts are let separately

Common exclusions and edge cases:

Situation	MEES applies?
Lettings under 6 months (no right of renewal)	No
Leases of 99+ years	No
Certain public sector or crown occupancies	No
Buildings to be demolished (not required to hold valid EPC)	No
Owner-occupied commercial buildings	No
Properties in Scotland or Northern Ireland	No

A word of caution: Voluntarily commissioning an EPC for an otherwise exempt building can inadvertently bring it within MEES. If you’re ordering an EPC purely for marketing or ESG reporting purposes, take advice first.

For portfolios with mixed uses and complex title structures, review each asset individually. Check the EPC register, current lease terms, and any previous MEES or exemption registrations.

Cost-effective energy efficiency improvements

MEES don’t dictate exactly which works you must carry out. Instead, the regulations require landlords either to bring the EPC up to at least E, or to demonstrate that doing so wouldn’t be cost effective under the 7-year payback test.

Understanding the 7-year payback test:

If the expected energy savings over seven years are less than the capital and installation costs of the improvement works, the measure isn’t considered cost effective for MEES purposes. This allows landlords to register an exemption rather than carry out improvements that make poor financial sense.

Typical improvement measures for commercial buildings:

• Upgrading lighting to LED systems
• Improving building management systems (BMS)
• Replacing inefficient boilers, chillers, or HVAC equipment
• Adding or upgrading wall insulation and roof insulation
• Improving glazing (double or triple glazing)
• Sealing air leakage points
• Installing renewable energy systems

Practical recommendations:

• Obtain a recommendation report from an accredited non-domestic EPC assessor to identify packages of works and model the impact on your property’s EPC rating
• Where multiple measures are recommended, implement all cost-effective ones before relying on an “all relevant improvements made” exemption
• Coordinate MEES upgrades with other lifecycle works (planned plant replacement, refurbishment, or lease events) to minimise disruption
• Remember that EPC recommendations are indicative—bespoke assessments are essential for accurate cost and improvement costs modelling

The goal is to achieve meaningful energy efficiency while avoiding unnecessary expenditure. For most commercial properties, LED lighting upgrades and heating system improvements offer the quickest wins.

Exemptions and the PRS Exemptions Register

MEES recognises that not every commercial property can be upgraded to EPC E. The regulations therefore provide specific exemptions that must be registered on the Private Rented Sector Exemptions Register before a sub-standard building can lawfully be let.

Key points about exemptions:

• Exemptions are personal to the landlord—they don’t automatically transfer on sale to a new owner
• Most exemptions last for five years, after which they must be reviewed and (if still applicable) re-registered
• Temporary exemptions of six months exist for certain situations like new landlords acquiring non-compliant property

Main categories of non-domestic exemptions:

Exemption type	When it applies
7-year payback	All relevant improvements would cost more than the energy savings they generate over seven years
All relevant improvements made	Works completed but EPC remains F or G
Wall insulation	Insulation would negatively impact the building’s structure or fabric
Third party consent	Tenant consent, superior landlord, planning authority, lender, or freeholder refuses consent for works
Devaluation	Independent surveyor confirms measures would reduce market value by more than 5%
Temporary (6 months)	New landlord or specified change-of-control situations

Evidence requirements:

Landlords must upload supporting documentation including:

• Current EPC and recommendation report
• Quotes for improvement works
• Professional reports (surveyor valuations for devaluation exemptions)
• Correspondence showing refusal of consent where a third party consent exemption applies

Important: Details entered on the prs exemptions register generally cannot be edited. Double-check accuracy before submission—corrections typically require cancelling and re-entering the exemption.

Maintain your own internal MEES records with expiry dates, so renewals aren’t missed and leasing plans can incorporate required works.

How to register a MEES exemption in practice

Registering an exemption is straightforward but requires careful preparation.

Step-by-step process:

1. Access the PRS Exemptions Register via the GOV.UK website
2. Create an account (or authorise an agent to register on your behalf)
3. Gather required information:
   • Landlord identity and contact details
   • Property address and postcode
   • EPC reference number
   • Details of the specific exemption relied upon
   • Supporting documents in digital format
4. Submit the registration with all evidence attached
5. The exemption applies takes effect immediately upon successful registration

After registration:

• Log in to cancel an exemption if you upgrade the property to at least EPC E
• Update the register if you dispose of the asset
• Review and update if circumstances underpinning the exemption change
• The exemption lasts for five years (or six months for temporary exemptions), so diarise the renewal date

Government provides occasional assisted digital support via email and telephone for landlords unable to use the online system, though this help covers process only—not legal or technical eligibility judgments.

Enforcement, penalties and risk management

Enforcement of MEES in England and Wales falls to local authorities—specifically, local Weights and Measures Authorities (usually Trading Standards). These bodies may investigate suspected breaches following complaints or routine checks.

How enforcement typically works:

• Authorities may issue a compliance notice (often within 12 months of a suspected breach)
• Landlords must provide EPCs, lease documentation, and exemption evidence
• Investigation determines whether non compliance has occurred

Penalty framework for non-domestic breaches:

Breach duration	Penalty calculation	Minimum	Maximum
Under 3 months	10% of rateable value	£5,000	£50,000
3 months or more	20% of rateable value	£10,000	£150,000

Additional consequences may include:

• Publication of the landlord’s details on a public register
• Potential reputational damage affecting future lettings and investment

Critical clarification: MEES breaches do not themselves invalidate leases. Tenants remain liable to pay rent and comply with covenants. However, landlords face fines and the risk of providing false or misleading information if exemption claims prove unfounded.

Risk management recommendations:

• Conduct portfolio-wide EPC audits to identify F and G rated assets
• Flag “at-risk” D and E rated properties for future planning
• Integrate MEES checks into acquisition due diligence
• Review lease drafting regularly with legal advisers
• Don’t rely on historically patchy enforcement—resourcing and political focus can shift rapidly around climate milestones

Lease and transaction implications for commercial MEES

While MEES obligations fall primarily on landlords, lease drafting significantly influences who bears the cost and operational impact of energy efficiency upgrades.

Typical negotiation points in commercial leases:

• Whether MEES-related capital works can be recovered through the service charge
• Landlord rights of access to carry out improvement works during the term
• Restrictions on tenant alterations or fit-out that could worsen EPC ratings
• Which party holds the contractual obligation for obtaining and maintaining the EPC
• Provisions addressing mees related costs allocation

Transaction considerations:

• Buyers should check EPC ratings and recommendation reports during due diligence
• Review any existing exemptions and their expiry dates
• Factor improvement costs into pricing and lending discussions
• Note that agreements for lease can be exchanged on F or G rated properties, but the lease cannot lawfully complete while the EPC remains below E without a valid exemption

Lease renewal scenarios:

When granting new leases or negotiating renewals, landlords should address:

• Who pays for future MEES upgrades
• How works will be coordinated with the new tenant
• What happens if the property meets current standards but fails future requirements

Future direction of MEES for commercial property

While current law only requires EPC E, government policy has repeatedly signalled an intention to raise minimum energy efficiency standards as part of the pathway to net zero by 2050.

Previous policy trajectory:

• Consultations indicated movement toward EPC C for commercial properties by 2027
• Further tightening to EPC B by 2030 was proposed
• Staged “compliance windows” were planned to give landlords sufficient lead time

Current position:

In November 2023, the previous government announced a pause on implementing these tighter standards, citing the need to give landlords, occupiers, and the supply chain more time to prepare. No replacement timetable has been legislated.

However, advisers generally expect higher minimum EPC thresholds to return in some form—particularly for larger or more energy-intensive commercial buildings. The pause affects certain circumstances but the underlying policy direction toward net zero remains.

Strategic recommendations:

• Plan on the assumption that EPC D properties will face challenges in the medium term
• Aiming for EPC C or higher now reduces future disruption and “stop-start” investment cycles
• Monitor government and professional guidance closely—proposals can change rapidly around election cycles and climate reporting milestones
• Consider energy security benefits alongside compliance when planning improvements

The commercial property sector’s significant challenges in decarbonisation mean regulatory pressure is unlikely to disappear. Proactive landlords who achieve better environmental performance now will be better positioned when rules apply more strictly.

Practical next steps for commercial landlords

Ready to get your portfolio MEES-compliant? Here’s a concise action plan:

Immediate actions:

• [ ] Audit existing EPCs across your portfolio
• [ ] Identify any F or G rated properties requiring urgent attention
• [ ] Flag “at-risk” D and E assets for medium-term planning
• [ ] Commission a new EPC where certificates are old, inaccurate, or missing
• [ ] Obtain professional advice on cost-effective improvement measures and likely EPC outcomes

Lease and documentation review:

• [ ] Review standard lease templates to address MEES responsibilities
• [ ] Check existing leases for service charge recovery provisions
• [ ] Confirm whether an independent surveyor assessment is needed for devaluation exemptions
• [ ] Ensure lease provisions address tenant consent for access and works

Exemption management:

• [ ] Decide whether exemptions are appropriate for any properties
• [ ] Gather required evidence (quotes, surveyor reports, consent refusals)
• [ ] Register exemptions on the prs exemptions register before any new letting
• [ ] Diarise expiry dates for renewal

Engage early with tenants:

Explain the benefits of planned works—reduced running costs, better workspaces, and improved ESG credentials. Address disruption concerns upfront and build upgrade timelines into lease negotiations.

Long-term planning:

Integrate MEES and broader energy efficiency considerations into:

• Asset management strategies
• Capital expenditure budgets
• ESG reporting frameworks
• Acquisition and disposal planning

The mees requirements aren’t going away. Property owners who treat compliance as an opportunity rather than a burden will protect asset values, attract quality tenants, and position their portfolios for whatever regulatory changes lie ahead.

Whether you’re managing a single retail unit or a multi-asset commercial portfolio, the time to act is now. Start with that EPC audit, identify your exposure, and build a realistic plan to achieve—and maintain—mees compliance.