BSEE BOILERS & HOT WATER
In just seven months, landlords could find themselves unable to rent out non‐domestic private rented sector property if it falls below the government’s minimum energy efficiency standards, says Adrian Morris, Product Manager at Remeha. A simple boiler upgrade could provide a timely, quick win solution for compliance.
energy efficiency of UK buildings comes into effect. The Energy Efficiency (Private Rented Sector) (England and Wales) Regulations – better known as the minimum energy efficiency standards (MEES) Regulations – will make it illegal under the Energy Act 2011 for landlords to let the most inefficient non-domestic properties. The new legislation applies to all non- domestic private rented sector (PRS) property requiring an Energy Performance Certificate (EPC), in accordance with the Energy Performance of Buildings Regulations 2007 or the Building Regulations 2010. Rented properties failing to meet the minimum energy efficiency standard, currently set at an EPC rating of E, will be deemed sub-standard.1 MEES will apply to both new leases and lease renewals from 1 April 2018. Properties that are exempt include buildings let on a tenancy for a term of six months or less (as long as granting of the tenancy does not mean the tenant will have occupied the property for more than 12 months) and those let on a tenancy for 99 years or more. From 1 April 2023, the regulations will apply to all eligible privately rented property, including existing tenancies where a lease is already in place and a property is occupied by a tenant.
O
Opportunities for the building services industry
u65 Fleet Street: A Remeha Gas 310 Eco Pro and two Remeha Gas 610 Eco Pro gas condensing boilers have been installed in a phased refurbishment programme at 65 Fleet Street, the City headquarters of elite international law firm Freshfields Bruckhaus Deringer, to achieve the required high efficiency heating and improved energy performance with minimum disruption.
. And in property terms, that could amount to a huge sum. So what does all this mean for the building services industry? MEES Regulations underline the importance of this sector in improving the energy performance of UK building stock and in achieving the nation’s steep carbon reduction target. They also offer huge opportunities for building services engineers, supporting facilities managers and energy managers in future-proofing the built environment. As a large user of energy in a building, heating offers huge scope for efficiency gains. Under MEES, any
Astute landlords will look to move swiftly to identify the necessary retrofit upgrades to ensure compliance by 1 April 2018. The alternative could be a fine of up to £150,000 or 20% of the rateable value of the property – whichever sum is greater. Buildings failing to meet the required standard risk becoming legally uninhabitable or reducing in capital value by as much as 10%, according to a report by Arbnco2
n 1 April 2018, one of the most
significant pieces of legislation in recent years aimed at improving the
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WHAT YOU NEED TO KNOW ABOUT MEES Landlords, the energy efficiency clock is ticking
measure must pass a seven-year payback test to ensure that they will deliver the approved, appropriate, cost-effective improvements. And with a significant number of buildings still relying on commercial boiler plant for heating, a simple boiler upgrade could provide just the affordable, rapid solution required for compliance. It’s a view supported by the Green Construction Board which identifies replacing inefficient boilers with condensing boilers as an effective measure to lift the EPC band of lower rated properties. Similarly, a study by Sweett Group for the Investment Property Forum (IPF), names high efficiency boilers and controls as low- cost energy efficiency quick wins. So why are condensing boilers such an effective solution? Firstly, they deliver outstanding efficiencies – the highest of all boiler types – with models like the Remeha Quinta range achieving gross efficiencies of up to 98%. A 10 to 15-year-old boiler, on the other hand, will manage 70% efficiency at best even when well maintained. So it doesn’t take a genius to calculate the energy saving potential. Then there are the environmental benefits. With minimum CO2
and ultra-
low Class 6 NOx emissions, the latest condensing boilers contribute towards a reduced carbon footprint while supporting the drive for cleaner air. At the same time, the cleaner, greener heating helps generate a healthier, more comfortable and productive building environment.
Going forward, commercially-aware landlords will recognise that occupants will increasingly favour properties with higher EPC ratings, strong environmental credentials – Class 6 NOx condensing boilers are also eligible for maximum BREEAM credits – and lower operating costs.
And by taking the opportunity to upgrade the controls at the same time as the boilers, landlords can improve a building’s energy performance still further. Replacing inefficient boilers and adding weather compensation controls and temperature and time settings could raise the EPC of a sub-standard building right up to the D band.
Removing the hassle factor
Then there’s the hassle factor. If MEES legislation aims to tackle the traditional barrier to implementing energy efficiency improvements, condensing boilers can provide a flexible solution, helping remove any associated perception of inconvenience. Importantly for landlords, who are often required by terms in leases to compensate any tenants subjected to disruption, condensing boiler models can be retrofitted as a one-off improvement when a building is wholly or partly occupied. This gives landlords the option to carry out live
refurbishments, rather than waiting for the building to be vacant. The advanced design also provides trouble-free operation and easier future maintenance and servicing.
Countdown to MEES
The government suggests that nearly a fifth of all non-domestic property falling under the scope of MEES – an
22 BUILDING SERVICES & ENVIRONMENTAL ENGINEER SEPTEMBER 2017
estimated £165.49 billion of the UK commercial property market – is in danger of not complying with the new standards. So with just seven months to achieve compliance, the energy- efficiency clock is ticking for PRS landlords to identify and implement the necessary improvements.
An additional 17% of non-domestic properties are rated E by today’s standards. The recommendation for PRS landlords of these buildings is to commission an up-to-date energy performance certificate to ensure compliance when the legislation comes into force.
By addressing the energy performance of our building stock, MEES regulations could make rapid progress in carbon reduction a real prospect while making our worst buildings better workplaces. And in condensing boilers, landlords and building services engineers have a cost- effective, highly-efficient, reliable and easy-to-install solution to improved building performance that makes everyone a winner.
www.remeha.co.uk
NOTES : 1
Further guidance from the Department for Business, Energy & Industrial Strategy (BEIS) on the Non-domestic Private Rented Property Minimum Standard can be found at
https://www.gov.uk/government/ uploads/system/uploads/attachment_ data/file/593422/
Non-Dom_Private_Rented_Property_ Minimum_Standard_- _Landlord_Guidance__2_.pdf
2
MEES: The implications for rent reviews, lease renewals and valuation.
uFitzroy Place: Nine Remeha Gas 310/610 Eco Pro boilers operate in the energy centre at Fitzroy Place to supply energy‐efficient heating and hot water to the eight‐storey office building at One Fitzroy Place, the second office building at Two Fitzroy Place, and the residential areas of the complex.
‘
Going forward, commercially‐ aware landlords will recognise that occupants will increasingly favour properties with higher EPC ratings, strong environmental credentials – Class 6 NOx condensing boilers are also eligible for maximum BREEAM credits – and lower operating costs.
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