The Secrets of EPC: A Comprehensive Guide

Written by

Inemesit Ukpanah

Last updated

15 March 2024

Energy Performance Certificates (EPCs) are crucial documents that reveal the energy efficiency of buildings. Understanding EPC and its implications is essential whether you’re a landlord, homeowner, or prospective buyer. 

But what is EPC, and why is it indispensable for homeowners and prospective buyers? 

Let’s delve into the details.

What is EPC?

An Energy Performance Certificate (EPC) resembles the multicoloured labels on new appliances. It provides a rating for a building’s energy efficiency, ranging from A (very efficient) to G (inefficient).

An EPC snaps a property’s energy use, estimated energy costs, and CO2 emission. It also provides recommendations on enhancing the building’s energy efficiency, reducing costs and minimising emissions.

The importance of having an EPC

An EPC is crucial as it needs to be available to potential buyers or tenants when you start marketing your property for sale or rent. Furthermore, it allows you to compare the energy efficiency of different properties, guiding you to make a more informed decision.

The Energy Performance Certificate (EPC) data reveals that only 69% of houses in England and 63% in Wales with “excellent” roof insulation achieve an EPC of C or above. This is significantly lower than in many other European countries.

Regarding wall insulation, only 60% of houses in England and Wales have an “average” or above rating. This is concerning as wall insulation is crucial in maintaining a home’s energy efficiency.

Notably, it is also beneficial for homeowners planning to make energy efficiency improvements in their property. The certificate provides valuable insights into the enhancements’ costs and potential savings.

What to expect on an EPC?

EPCs may vary in appearance, but they all provide similar information. They offer a comprehensive breakdown of the property’s elements, including its construction, heating and hot water system, and lighting. This information is represented by an energy rating of one to five stars, with five being the best.

Furthermore, EPCs outline the potential energy efficiency rating if the recommended improvements are implemented. This information can be helpful for homeowners planning to improve their property or prospective buyers looking to buy and renovate a property.

EPC ratings and recommendations

The UK households consume gas at around twice the EU average, primarily due to the country’s leaky homes. This increased energy consumption leads to higher utility bills, with poorly insulated homes spending almost £1,000 more on gas, contributing to the UK’s carbon emissions. Around a quarter of the UK’s total greenhouse gas output stems directly from energy used in homes.

However, getting an EPC starts with estimating the property’s current and potential energy costs, which will save utility bills. The rating is determined based on the property’s CO2 emissions, with A being the most efficient and G being the least. It provides a visual comparison of property performance, similar to the energy labels on home appliances. Your property receives a current energy efficiency rating ranging from A to G, with A being the most efficient.

One of the most valuable insights of an EPC is the recommendations. This details the recommended measures, costs, potential savings, and how each step could boost the property’s energy efficiency rating.

By implementing these recommendations, homeowners can significantly improve their property’s energy efficiency, reduce energy costs, and minimise carbon emissions.

EPCs in different UK locations

EPC requirements and processes can vary depending on the location. You can look up the approved EPC organisationsin England, Wales and Northern Ireland. For Northern Ireland, you can also check NI Direct and the Department of Finance’s information on EPCs. Scotland’s Scottish Government’s Home Report pages provide detailed information on EPCs.

EPCs play a significant role in promoting energy efficiency and sustainability. Understanding what EPC is, its purpose and the information it provides can guide homeowners, prospective buyers and tenants in making informed decisions about their properties. From identifying areas for improvement to estimating potential savings, it is an indispensable tool in today’s world.

Breaking down the EPC

EPCs may vary in appearance, but they all provide essential information about the energy performance of a property. Here’s what to expect:

• Current and potential energy costs: This estimates the property’s existing and potential energy bills, excluding the energy costs from home appliances.
• Energy efficiency rating: This visually compares the property’s performance to energy labels on home appliances. It shows the current and potential energy efficiency ratings if all the suggested improvements were carried through.
• Performance ratings: This breakdown of each element of your property, from its construction to its heating and lighting system, helps you understand its energy efficiency.
• Estimated heat demand: This provides insights into the heat requirements of the property and how insulation improvements can reduce it.
• Recommendations: This is arguably the most crucial section of the EPC. It provides a detailed list of recommended measures, their costs, potential savings, and the improvement in the energy efficiency rating they could achieve.

How to improve your EPC rating

Improving your EPC rating can increase your home’s value by up to 20%. It can also help you save money on energy bills and make your property more attractive to potential buyers or tenants. 

The Energy Performance Certificate (EPC) rating is not just a legal necessity; it’s a smart investment in your property’s future. With the UK government’s push towards greener living, a good EPC rating can save you money on energy bills and increase your property’s market value.

By 2025, new tenancies will require a minimum EPC rating of ‘C’; by 2028, all tenancies must comply. Failing to meet these standards could result in hefty fines, so it’s wise to start improving now.

Here are some practical steps to enhance your EPC rating, ensuring your home is energy-efficient and compliant with upcoming regulations.

Practical steps to boost your EPC rating

Several factors can affect your EPC rating, including your property’s insulation, heating system, and lighting. Here are some tips on how you can improve your EPC rating:

• Insulation: Properties without loft insulation tend to lose around 25% of their heat through the roof. Installing loft insulation using renewable wood fibre or fibreglass materials can significantly improve your EPC rating. Improving your property’s insulation can dramatically enhance its energy efficiency. This can include wall insulation, roof insulation, and floor insulation.
• Heating System: An efficient heating system can also boost your EPC rating. Consider upgrading to a more energy-efficient boiler or installing a heat pump.
• Lighting: Switching to energy-efficient light bulbs can reduce energy usage and improve your EPC rating.
• Install Double Glazing: Double-glazed windows can help reduce heat loss, improving your property’s energy efficiency.
• Replace Your Boiler: Modern boilers are much more efficient, use less energy and cost less. Replacing your boiler can have a significant impact on your EPC rating.
• Renewable Energy: Installing renewable energy systems like photovoltaic panels can enhance your EPC rating.
• Install a Smart Meter: A smart meter can help you monitor and manage your energy usage more effectively, which can improve your EPC rating.

Who produces EPCs?

Only accredited domestic energy assessors can produce valid EPCs. You can find a list of approved EPC organisations in England, Wales and Northern Ireland. If you’re selling or renting your home through an estate agent, they may be able to arrange for the EPC to be completed for you.

Only organisations approved by the Scottish Government can produce valid EPCs in Scotland. You can find a list of approved EPC organisations on the Scottish EPC Register. If you’re selling your home through a selling agent, they should arrange for a Home Report, which includes an energy report and EPC.

Buildings exempt from EPCs

Certain types of buildings are exempt from the requirement of having an EPC. These include:

• Places of worship.
• Temporary buildings that will be used for less than two years.
• Some buildings or facilities are due to be demolished.
• Industrial sites, workshops and non-residential agricultural buildings that do not use much energy.
• Properties that are used for less than four months a year.

The future of EPCs

With technological advancements, assessing a property’s energy efficiency for the EPC could become increasingly automated. This could make the process quicker and more efficient, providing property owners with valuable insights more rapidly. 

As the focus on sustainable living and green building standards intensifies, the role of EPCs is likely to become even more significant. They provide a clear and tangible way to measure a property’s environmental impact, making them a vital tool in the drive towards more sustainable construction.

Understanding EPC is crucial for property owners, tenants, and potential buyers. It offers a transparent view of a property’s energy efficiency, serving as a guide for improvements and an indicator of potential energy costs. As we move towards a more sustainable future, the significance of EPCs will undoubtedly continue to grow.

Remember, the journey to energy efficiency starts with understanding your EPC. Make it your first step towards a greener, more sustainable future.