The Minimum Energy Efficiency Standards (MEES) — set out in the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 — make it unlawful to let a non-domestic property in England and Wales below the required EPC rating. Since 1 April 2023 the statutory minimum is Band E for all lettings. In its June 2026 interim response, the government (DESNZ) confirmed a targeted future direction: from 2031, buildings over 1,000 m² are proposed to meet EPC B, where cost-effective. Buildings under 1,000 m² remain at Band E with no further deadline currently defined; the previously proposed 2027 EPC C interim milestone has been dropped.
Since 1 April 2018 (new tenancies) and 1 April 2023 (all continuing tenancies), it is unlawful to let any non-domestic property in England and Wales with an EPC rating of F or G, unless a valid exemption is registered on the PRS Exemptions Register. The Regulations apply where a property is legally required to have an EPC and is let on a "term certain" between 6 months and 99 years. Enforcement is by the Local Weights and Measures Authority.
In June 2026 DESNZ published its interim response to the 2019 and 2021 consultations on strengthening non-domestic MEES. The confirmed direction is: (1) from 2031, private-rented buildings over 1,000 m² are proposed to reach EPC B, where cost-effective; (2) buildings under 1,000 m² are intended to continue at the current EPC E minimum, with no further set deadline beyond that; (3) the previously proposed 2027 EPC C interim milestone will not be taken forward; (4) existing flexibility mechanisms (7-year payback test and exemptions) will remain. EPC B for larger buildings will only take effect once secondary legislation passes Parliament; a full government response and updated guidance are pending.
The 7-year payback test is a statutory exemption (Regulation 28) — not a general rule that all measures must pay back within 7 years. Where the cost of a recommended improvement measure — or package — is greater than the expected value of energy-bill savings over 7 years from installation, the landlord may register a 7-year payback exemption instead of installing that measure. The test is documented in Chapter 2 of the DESNZ non-domestic landlord guidance. Our NDEAR advice reports flag every measure against this test so landlords can see which measures fall inside and outside the statutory obligation.
The PRS Exemptions Register accepts several exemption types: the 7-year payback exemption; the "all improvements made" exemption (where every relevant improvement has been installed and the property still fails); the wall insulation exemption (where a recognised expert confirms cavity, external or internal wall insulation would harm the fabric or structure); the third-party consent exemption (where a required consent from a tenant, superior landlord, mortgagee, freeholder or planning department cannot reasonably be obtained); the property devaluation exemption (where a RICS-registered valuer confirms the improvement would devalue the property by more than 5%); and a 6-month temporary exemption where a person has recently become the landlord under specified circumstances. Most exemptions last 5 years, then must be reassessed.
A defensible MEES compliance pack contains: the current EPC and its underlying SBEM model; a Non-Domestic Energy Advice Report (NDEAR) or equivalent showing which measures pass and fail the 7-year payback test; evidence of any measures already installed, with a post-works model; and — where relevant — the exemption registration on the PRS Exemptions Register with the supporting documentation set out in the DESNZ guidance. We produce this pack as a matter of course for every MEES landlord we work with.
This page is a plain-English summary of statutory guidance produced by DESNZ. For the authoritative text see: the DESNZ non-domestic landlord guidance (gov.uk/guidance/non-domestic-private-rented-property-minimum-energy-efficiency-standard-landlord-guidance, last updated May 2026); the DESNZ interim response on non-domestic MEES EPC B implementation (June 2026); and the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015. This page is a guide, not legal advice.
Since 1 April 2023, under the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, it is unlawful to let any non-domestic property in England and Wales with an EPC rating of F or G — the minimum statutory rating is Band E — unless a valid exemption is registered on the PRS Exemptions Register.
In its June 2026 interim response DESNZ confirmed a targeted approach: from 2031, private-rented buildings over 1,000 m² will need to reach EPC B, where cost-effective. Buildings under 1,000 m² will continue at the current EPC E minimum with no further deadline currently defined. The previously proposed 2027 EPC C interim milestone will not be taken forward. The EPC B requirement for larger buildings still requires secondary legislation to pass Parliament and is not yet law; a full government response and updated guidance are pending.
The 2027 EPC C interim milestone has been dropped. DESNZ confirmed in its June 2026 interim response that this milestone will not be taken forward, giving landlords and tenants more time to improve buildings in a way that fits their leases and business plans. The statutory minimum remains Band E until any future EPC B regulations take effect.
The £3,500 cost cap does not apply to non-domestic MEES — it applies to the DOMESTIC MEES regime for a private rented home. Under commercial MEES there is no fixed monetary cap; the qualifying filter is the 7-year payback exemption (Regulation 28) — a measure that does not pay back within 7 years of energy savings can be excluded via a registered exemption.
The Regulations are enforced by the Local Weights and Measures Authority. Where a breach is confirmed, financial penalties are calculated by reference to the property's rateable value and the length of the breach, and the enforcement authority may also publish a notice of non-compliance on the PRS Exemptions Register. The precise financial-penalty limits and calculation formulas are set out in Regulation 39 of the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 — landlords should refer to that Regulation and the DESNZ non-domestic landlord guidance for the current figures.
Commission a valid Commercial EPC (if the current one is missing or expired) and a Non-Domestic Energy Advice Report (NDEAR). The advice report tells you: (a) which improvement measures pass the 7-year payback test and can be enforced under MEES, (b) what EPC band each raft of measures would achieve, and (c) whether the property qualifies for any of the registered exemption types (7-year payback, all improvements made, wall insulation, third-party consent, property devaluation, or the 6-month temporary exemption for a recently-arrived landlord). Once you have that pack, decisions on funding, phasing and exemption registration become straightforward.
Commission a MEES compliance advice report
Call 01392 980077 or get a quote online.