Following a recent consultation, some commercial


buildings may be required to connect to a heat network, unless they qualify for an exemption. A mandatory connection will require investment in infrastructure and retrofi tting existing systems and is likely to aff ect many owners and occupiers of buildings in large towns and cities.


EPCs and MEES improvements The FHBS will also introduce more rigorous methods for assessing energy performance, including updated Standard Assessment Procedure (SAP) calculations and TM54 assessments to predict operational energy use. Last year the government consulted on amendments


to make Energy Performance Certifi cates (EPCs) more accurate and up-to-date by reducing their validity period from the current 10 years, with options ranging from just two years to seven years to ensure that certifi cates provide more current information and better reflect building improvements. However, greater assessment accuracy may result in lowered ratings for some buildings if the previous assessment inaccurately overestimated the building’s performance. The consultation stopped short of addressing the


contentious Minimum Energy Efficiency Standards (MEES) and the government has paused proposed legislation mandating an uplift to EPC C by 2027 and EPC B by 2030. Nevertheless, many investors and funders are already embedding higher energy effi ciency requirements into transactions, as valuers start to downgrade properties with an EPC rating of D or below. As and when the MEES uplift is confi rmed, there will


be a demand for retrofi t services as property owners rush to comply with deadlines. Proactive steps now will help owners avoid demand-pull infl ation and/or voids.


Retrofi tting Apart from the above-mentioned requirements, retrofi tting of existing buildings is largely voluntary. T e benefi ts are well-known but worth repeating: ■ Operational cost savings for occupiers ■ Tenant traction and lower void rates ■ Increased property values and improved borrowing for owners, and


■ Future-proofi ng against new legislation. However, capital expenditure is a critical factor and


most retrofits require vacant possession or proactive management of existing tenants.


What you can do to prepare for net zero Whilst at present there are no UK targets to make existing buildings in England net zero, there are a number of schemes encouraging owners and occupiers to take steps in that direction. ■ Solar PV panels: any building with a sloped or fl at roof can generate solar energy and use the power produced on site in its operations or feed it back into the grid,


17


Marcus Carter


and yet less than 5% of the UK’s commercial and industrial rooftops are equipped with solar PV panels. Government grants are available to small businesses and homes through the Smart Export Guarantee.


■ Boiler Upgrade Scheme: this scheme supports the decarbonisation of small and medium commercial buildings by providing upfront capital grants of up to £7,500 to replace existing fossil fuel heating with more efficient, low carbon heating systems such as heat pumps and biomass boilers.


Other incentives include: ■ 100% first-year enhanced capital allowances for energy-effi cient equipment, such as electric vehicle (EV) charging equipment


■ The Workplace Charging Scheme which covers up to 75% of the costs of purchasing and installing EV chargepoints at workplaces (closes 31 March 2026), and


■ Green bank loans for retrofi tting. These piecemeal measures can nudge businesses


towards net zero but meeting the UK’s 2050 commitments will ultimately require a more holistic government approach, backed by adequate funding.


For more information, contact Marcus Carter on 07814 356928 or email marcus.carter@howespercival.com For more about Howes Percival, visit www.howespercival.com


ENVIRONMENT & SUSTAINABILITY


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68