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www.eibi.co.uk BUILDING EFFICIENCY
Commercial property energy upgrades slow despite tighter standards
The pace of energy efficiency improvements in the UK commercial property sector has slowed, according to new analysis that warns thousands of buildings remain in categories that cannot legally be let without exemptions. Research by Search Acumen found
that growth in the number of commercial buildings receiving higher Energy Performance Certificate (EPC) ratings eased in 2025 after several years of rapid expansion. Buildings rated A, A+ and B had
previously increased by an average of 26% a year until 2024. In 2025, growth slowed to 20%, with fewer top-rated EPC registrations recorded than in either of the previous two years. Registrations fell 22% compared with
The office sector accounted for
the largest share of these lower-rated properties. More than 3,500 office buildings were recorded in EPC bands F and G over the past five years, according to the report. In 2025 alone, offices made up 48%
a peak reached in 2023. The analysis also highlighted the number of properties still falling below the minimum legal standard under the government’s Minimum Energy Efficiency Standards (MEES). Buildings with EPC ratings of F or G are generally considered unlettable unless landlords secure an exemption.
Heat pump industry urges national plan for commercial
and industrial rollout The UK’s heat pump industry has urged the government to set out a national plan to accelerate the use of heat pumps in commercial, public sector and industrial buildings, warning that current policy is not sufficient to scale up deployment beyond the domestic market. In a new publication from The Heat Pump Association
UK, the newly merged trade body outlines a series of actions that the heat pump sector and wider stakeholders involved in the supply chain can take together, with key asks for the government. While heat pump sales continue to grow in the UK, with
more than 125,000 heat pumps sold in 2025, the vast majority of these are installed in domestic properties. Heat pumps in non-domestic settings remain a small fraction of the market, despite it representing a significant share of the UK’s heat demand. The Climate Change Committee expects 88% of non-residential heating to come from low carbon sources by 2040, with rapid electrification required to meet the UK’s 2050 targets. HPA UK policy recommendations for government are:
● Publish a national ‘Plan for the Electrification of Non- Domestic Heat’, supported by a dedicated taskforce to deliver this ● Work to reduce t he high cost of electricity relative to fossil fuels for all non-domestic energy users to improve UK competitiveness ● Provide clarity on future funding mechanisms for public sector decarbonisation, following the closure of the Public Sector Decarbonisation Scheme in June 2025 ● Identify fast-track grid connection zones for industrial electrification ● Develop business models to unlock private investment in heat pump technologies
Energy briefing document for parliamentarians
The House of Commons Library has published a new Research Briefing for MPs. Entitled ‘Help with energy efficiency in homes’. It is designed to inform parliamentarians about the variety of support schemes available for constituents and, perhaps significantly, detailed “help with rectifying problems”. Established UK-wide programmes
like the Warm Homes Local Grant (WH:LG) and the Warm Homes: Social Housing Fund (WH:SHF) are set to run until April 2028; while the Boiler Upgrade Scheme (BUS) for biomass boilers,
EIBI | MAY 2026
heat batteries as well as heat pumps is guaranteed until 2030. However, much of the briefing is
devoted to two large programmes aimed at households likely to be in fuel poverty, the Energy Company Obligation and the Great British Insulation Scheme – both of which were closed for new money in March. A lengthy section is devoted to the
forthcoming implementation of the Warm Homes Plan, but there remains a complete dearth of information about how much, where and when such proposals will become reality.
However, the Research Briefing
does provide encouraging details concerning support programmes created by each of the devolved governments in Scotland, Wales and Northern Ireland. While each has retained a strong government- funded programme available to any householder in fuel poverty, there is no longer any such nationwide programme available in England. It is likely that English MPs, armed with this research paper, will be arguing for similar programmes to be introduced to help their constituents.
of all new F and G EPC registrations. During the first two months of this year, 200 non-domestic buildings were registered with EPC ratings of F or G. Across the whole of 2025, the total reached 1,246, down 2% on the previous year.
The findings suggest progress
towards compliance has slowed since rules requiring all leased commercial properties to achieve at least an EPC rating of E came fully into force in 2023.
In Brief
● Strategic Thermal Labs LLC, a specialist in liquid-cooling technologies, has been acquired by Vertiv. The acquisition expands the company’s engineering capabilities in liquid-cooled data centre environments, particularly for AI and high-performance computing applications requiring high-density thermal management solutions.
● BNP Paribas Leasing Solutions, a provider of business equipment finance, has signed an agreement with Carrier, a global leader in intelligent climate and energy solutions, to establish a strategic financing agreement across Europe. The agreement sets the foundation for a multi-country financing partnership to support Carrier’s commercial customers with financing solutions.
● Multi-utility infrastructure provider Last Mile has reached 1 million utility connections, a landmark milestone that signals the company’s sustained growth, resilience and the financial strength of its growing asset portfolio. The figure comprises live connections across electricity, gas, water, wastewater and heat networks, managed by Last Mile at residential, commercial and industrial developments.
● Energy and sustainability consultancy Carbon Futures has opened a London office to support its expanding operations across the UK. The company, which also has offices in Glasgow and Edinburgh, provides sustainability, decarbonisation and low- carbon design consultancy services for the built environment. Loreana Padron has joined as director to lead the London office.
● Newcastle Airport has reduced its on-site carbon emissions by 46% compared to 2019, putting it significantly ahead of its 2035 net zero target. The milestone follows a series of investments by the airport to accelerate its sustainability strategy, including the switch to hydrotreated vegetable oil (HVO) to power all non- electric vehicles across its site.
● A new carbon accounting qualification has been launched to improve the accuracy of corporate emissions reporting. Developed by the Institute of Sustainability and Environmental Professionals and the Carbon Accounting Alliance, the course will equip practitioners with technical skills for measuring and reporting greenhouse gas emissions.
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NEWS UPDATE
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