With energy prices becoming increasingly volatile, businesses across the regions are being urged to consider onsite energy and heat generation to save money, while also protecting natural resources.
Andrew Rollo, Head of Energy at George F. White, said: “Subsidies are reducing while energy costs are rising. The government FIT scheme for wind turbines is currently fully subscribed and grants for technologies such as solar have been greatly reduced over the past three to four years. This has dramatically reduced the attractiveness of projects which create and export energy.”
“At the same time, purchasing energy is more expensive than ever for businesses across all sectors. Onsite generation can create power for as little as 3p per kWh, which is why looking into generating your own power or heat is an essential element in forward planning for businesses.”
There are several technologies that can protect businesses against the volatility of the energy market, including ground source heat pump systems which provide good returns for those firms currently using fossil fuels to provide heat for processes, working environments and storage spaces. There are other initiatives that help shift consumption away from peak periods such as the emerging battery storage market and Demand Side Response Scheme. These are available at zero capital cost; the investment being made by a third party with benefits being shared between developer and consumer. When businesses generate their own power, they can effectively fix their energy cost for up to 25 years, which not only creates huge savings but also enables effective long term financial planning.
Andrew added: “We work independently with a wide range of businesses that consume large amounts of energy or heat, helping them to identify and deliver sustainable energy initiatives that will benefit their bottom line. We perform feasibility studies which enable clients to understand the specific benefits of the project and any associated risks before embarking on a particular energy project. Once an initiative is under way, we work closely with the client, offering a turn-key service to take the project from initial feasibility to final commissioning. On completion of the project, we can then manage the asset appropriately to optimise efficiency and ensure its profitability and longevity.”
To find out more about alternative energy initiatives and how and why they can work for your business, please contact Andrew Rollo on email@example.com or 07545 920905.
George F. White are offering a service to help achieve regulatory compliance (Minimum Energy Efficiency Standards or MEES) in regards to your Commercial Energy Performance Certificate (EPC). You may be aware of these regulations but may not be aware of the implications or indeed the potential interventions you can make to ensure the ongoing viability of your property as a rental asset.
What are Minimum Energy Efficiency Standards (MEES)?
The Energy Efficiency (England and Wales) Regulations 2015, or MEES, is part of a drive to improve the energy efficiency of privately rented residential, commercial and industrial buildings across the UK.
Building Regulations will ensure that any new properties constructed meet current standards however, the MEES ensure that older, poorer performing buildings are improved. MEES apply to properties with an EPC rating below an F or G.
How are MEES being Introduced?
The regulations are being introduced in a staged approach to ease the transition for private landlords. It is important to consider that the EPC threshold is likely to rise in future.
From April 2018:
Domestic and non-domestic buildings that do not meet the minimum requirements cannot be lawfully re-let to new or existing tenants. Sufficient measures will improve the performance of the building to an EPC rating E or above.
From April 2023:
Landlords must not continue to let a non-domestic property holding an EPC rating of below an E.
Penalties for Non-Compliance…
Penalties for non-compliance in the form of financial penalties are based upon the rateable value (RV) of the property.
The enforcement authority may also publicise the breach through various media platforms.
|Less than 3 Months
||up to 10% of the RV of the property or £5,000 (whichever is the greater) up to a maximum of £50,000
|Beyond 3 Months
||up to 20% of the RV of the property or £10,000 (whichever is the greater) up to a maximum of £150,000
Exemptions and Exclusions
Buildings are exempt for a number of reasons including not being required to hold an EPC in addition too a lease term less than 6 months or a lease term in excess of 99 years.
Landlords are exempt from mandatory improvements if:
▪ An independent assessor shows that energy improvements will not payback within 7 years;
▪ The landlord is unable to gain third party consent either from tenants, superior landlords or where planning permission is required from the local planning authority;
▪ If the market value of the property will reduce by more than 5% as assessed by an independent assessor.
Exemptions can be registered with the PRS Exemptions Register and if agreed will only last for 5 years.
Please note that you have 6 months to improve your EPC rating to at least an E in addition to considering future improvements.
Contact our experts today for advice.
Andrew Rollo: 07545920905
Robert Hamilton: 07885 556849