Energy Performance Certificates (EPCs) have been an important feature in the property industry since they were first introduced to Scotland in 2008, and with changing government legislation on the horizon to improve the energy efficiency of our homes, their importance is only set to increase over the next few years.
The Scottish Government has stated that the metrics and ratings EPCs currently use are not appropriate to drive the improvements needed to help acheive their target of “net zero” greenhouse gas emissions by 2045.
To understand more about EPCs, the proposed changes in legislation and how property owners can start to take action in preparation for the new green guidelines, we spoke to energy-efficiency expert Adam Al Khateb.
Adam has been involved in environmental sustainability for 10 years and is the founder of AAL Property Solutions, an Edinburgh-based property company that helps landlords, homeowners and letting agents of residential property with a variety of services including health and safety, energy efficiency and EPCs.
What is an EPC and why is it important?
An EPC provides an energy efficiency rating in relation to a property’s running costs, on a scale from scale of A (very efficient) to G (inefficient). It also includes the property’s Environmental Impact Rating, in a chart showing the effect of the property on the environment, in terms of carbon dioxide (CO2) emissions.
An EPC will also state what the energy-efficiency rating could be if recommended improvements are carried out and highlights cost-effective ways to achieve a better rating.
The certificate has become an important document in the property industry as it is a requirement for several reasons such as renting, selling, applying for finance and meeting government legislation, and forms part of the Home Report - a document which every seller of a residential property in Scotland is required to produce prior to putting the property onto the market.
EPCs are currently valid for up to 10 years, however if you make a significant improvement to your property during this period, you can have a new EPC survey conducted to enable you to advertise a more energy-efficient property.
If you do not have an EPC when selling or renting a property, you could be fined a minimum of £500.
What are the current EPC requirements for properties in Scotland?
Currently the minimum EPC requirement for a rented property in Scotland is an EPC E rating. There was a requirement for a D rating to be introduced, but this was scrapped by the Scottish Government due to delays over the covid pandemic.
What are the proposed changes to EPC legislation?
From 2025, the Scottish Government wants all rented properties starting new tenancies to meet an EPC C rating, where technically feasible and cost-effective. Existing tenancies will need to achieve this rating by 2028.
The government also wants all homes (including owner occupied) to meet at least this standard by 2033, where feasible and cost-effective, as part of their Heat in Buildings Strategy which has the aim of switching all buildings in Scotland to a zero-emissions heating system by 2045.
As part of EPC reform, a change in the length of time a certificate is a valid may also be reduced from the current 10 years to 5 years.
What sources of information can owners access for advice on upgrading the energy efficiency of their property?
Such information can be found on the Home Energy Scotland website, as well as local Council websites. Home Energy Scotland is an organisation funded by the Scottish Government and managed by Energy Saving Trust which helps people in Scotland improve the energy efficiency of their homes.
Is there any financial support available to help owners upgrade?
Home Energy Scotland offer a range of grants and interest-free loans (grants are usually only available for owner occupied properties).
The Private Rented Sector Landlord Loan is funded by the Scottish Government and open to registered private sector landlords, acting either as an individual or a business that owns privately rented properties. The loan can be used for a variety of energy efficiency improvements such as insulation and home renewables systems such as heat pumps.
Funding might also be available from your local Council, so you should contact them to enquire.
