Energy and carbon reporting may seem like just another box to tick, but these schemes can often lead to unexpected benefits for businesses, particularly when aligned with wider minimum energy performance standards aimed at improving overall building efficiency.
Even smaller reporting requirements such as DECs and EPCs, which are often seen as an administrative burden, have their upsides. Complying with these EPBD requirements can lead to lower utility bills and a more sustainable future for your business, while supporting long-term improvements across the UK’s building stock.
Here is everything you need to know about the EPBD, and how to make compliance work for you.
What is the EPBD?
The Energy Performance of Buildings Directive (EPBD) was established to tackle emissions from new and existing buildings across the EU, setting a framework that member states must follow to improve energy performance across their building stock. DECs, EPCs and TM44 all fall under the scheme.
Buildings accounted for 17% of the UK’s total greenhouse gas emissions in 2019, highlighting the need to improve both new and existing infrastructure. While it is now mandatory for new builds to meet efficiency standards, older buildings remain a key focus, particularly as many fall into the category of worst performing buildings in terms of energy efficiency.
In 2018, 75% of existing buildings were categorised as ‘energy inefficient’, reinforcing the need for structured improvements and long-term planning.
There was some uncertainty around the UK continuing to follow the regulations set out in the EU agreement post-Brexit. However, the UK government confirmed its commitment to maintaining high standards, aligning with broader European objectives even after the updated directive entered into force.
Does my building need an EPBD certificate?
Staying compliant with EPBD legislation doesn’t have to be complicated. There are three main types of certification, and which ones you need depends on your property, whether it is a commercial site or a residential building subject to energy performance requirements.
Here are the three main EPBD requirements:
1) DECs (Display Energy Certificates)
A DEC shows the building’s energy performance and is based on the consumption recorded over the previous 12 months. The rating system ranges from A to G, with A representing the lowest emissions and G the highest.
These are required for any building larger than 250m² that is frequently visited by the public. Alongside the DEC, an advisory report is also required. These certificates are valid for 10 years for buildings up to 1000m² and for 12 months for larger buildings. Private organisations do not need to display a DEC but may choose to do so voluntarily, particularly as part of broader building automation and control strategies to improve performance visibility.
Benefits of a DEC
- Improve energy efficiency
- Decrease energy consumption and waste
- Reduce utility costs
- Lower emissions
- Social benefits of taking environmental action
- Preparation for future carbon reporting
- Support alignment with minimum energy performance standards and future regulatory requirements
2) TM44 Air Conditioner Inspections
Any building installed with air conditioning systems must be inspected every 5 years. Your inspector will provide a certificate and report detailing how efficient the equipment is, along with recommendations for improvement, including opportunities to enhance building automation and control systems for better performance.
Benefits of a TM44 inspection
- Avoid non-compliance fines
- Improve efficiency
- Reduce electricity consumption
- Decrease operating costs
- Lower carbon emissions
- Reduce maintenance needs
- Improve controls and settings
- Identify technical flaws
- Support long-term improvements across both commercial and residential building environments
3) EPCs (Energy Performance Certificates)
This certificate is required when a property is built, sold or rented. It includes an efficiency rating from A to G and is valid for 10 years. Buildings that don’t achieve an E grade or higher cannot be sold or let, in line with minimum energy performance standards targeting the worst performing buildings.
Benefits of an EPC
- Improve energy efficiency
- Decrease energy consumption and waste
- Provide transparency for buyers and/or tenants
- Reduce utility costs
- Lower emissions
- Social benefits of taking environmental action
- Preparation for future carbon reporting
- Encourage upgrades such as solar energy adoption and making properties solar ready for future compliance
The Future of EPBD Compliance
As regulations evolve, businesses and property owners should expect stricter requirements, including national-level planning frameworks such as a national building renovation plan designed to improve the efficiency of buildings by 2030.
These plans aim to transform the existing building stock, with a strong focus on reducing emissions, improving efficiency, and integrating renewable technologies like solar energy. In many cases, new and refurbished buildings will need to be solar ready, ensuring they can support renewable generation as standards tighten.
How can we help?
At National Utility Hub, we help guide our clients towards the most efficient and cost-effective energy management plan. We can offer end-to-end support of your accreditation process for any of the above schemes, as well as guidance on efficiency upgrades and sustainable solutions. This includes smart metering, bill validation, renewable energy procurement and exploring your on-site energy generation options.
To learn more about EPBD and if your business needs to comply, contact us today for a free consultation.