A Guide to Energy Performance Certificates

An Energy Performance Certificate (EPC) provides information on the usage of energy in a home or business premises. The certificate provides buyers with useful information on the usage and costs of energy in the property. This enables owners to address ways in which they can improve energy usage and efficiency throughout the building and how they might be able to save money. The EPC was originally introduced in 2007 and formed part of the Home Information Pack (HIP) that was given to buyers of property. Although HIPs were scrapped in 2010, the EPC is still a legal requirement.

What information is included in the EPC?

The EPC provides information such as:

• Energy usage per square metre of floor space
• The efficiency of energy used based on the cost of fuels
• Information relating to CO2 emissions, highlighting the environmental impact of energy usage in the property.

The EPC is valid for ten years following its creation and includes a variety of information that can prove useful to property owners. The EPC serves to show how energy efficient a property is through the use of a grading system. The grades used range from A - G, with A being the most efficient rating.

In general, a newer property is likely to be more energy efficient than an older property, and so new builds should have a higher rating. The scale is also colour coded from green to red. Green highlights that the property is considered to be energy efficient, whereas red demonstrates that the property needs substantial improvements. This in turn means that green readings suggest lower fuel costs, whereas red readings indicate higher energy expenses.

There is also a numerical reading that confirms the environmental impact of the property. The reading is from 1 - 100, with the larger the number suggesting the less impact the property has on the environment.

The EPC also provides owners with information on how they might improve the energy efficiency of the property. The EPC highlights the areas that are vulnerable or lacking and confirms ways in which improvements might be made. This might include the addition of double glazing or better loft insulation.

The better rating a property has on the EPC, the more attractive it is likely to be for buyers.

Estimated Fuel Costs

The EPC also provides information relating to the estimated fuels costs for the property. The energy assessor uses standardised assumptions about the occupancy of the property, heating use and geographical influences to determine likely costs of fuel. In turn, this information allows owners to consider the expected cost of lighting, heating and water use for the home.

The EPC provides details on the current and potential costs for lighting, heating and water, allowing users to understand where improvements might be made. The costs of fuel can influence these figures and so it is wise to consider the date of the EPC before relying on the cost indications.

Improvement Suggestions

The EPC provides a list of suggestions for the ways in which improvements can be made to the efficiency of energy usage within a property. Furthermore, the EPC gives details of typical savings that could be made by implementing such changes. The improvements are divided into categories based on their saving potential, enabling users to access information to make changes based on their financial benefits.

The cost of an EPC

The cost of obtaining a new Energy Performance Certificate can range from approximately £60 to £120. An EPC provider is likely to cost less than the charges quoted by an estate agent. Prices will vary from provider to provider and so it is wise to get a few different quotes to obtain the most competitive price. The energy performance certificate register holds the details of accredited energy assessors, allowing you the option to seek out the most suitable professional in your local area.

How to get an EPC

A property that has been let or sold since October 2008 should already have an EPC. The EPC is valid for ten years from its point of creation and so long as any existing EPC is within those ten years, a new one will not be required.

By law, an EPC must be provided in the following circumstances:

• When a person is considering purchasing the property
• To any person who is considering renting the property. The EPC is only required for whole property rentals, rather than just room rentals.

An EPC is available at any time, though the cost to create the certificate is likely to mean that many people wait until it is necessary to produce a new one. However, if a review of energy useage or the intention to improve efficiency exists, a new certificate can be created.

In order to obtain a new EPC, an accredited domestic energy assessor will need to be hired to assess the property and produce the certificate.

The Green Deal

In February 2013, the government introduced a new scheme called the ‘Green Deal', which resulted in changes to the EPC. The Green Deal enables owners to borrow money to make energy efficiency improving modifications to property. The loan is then repaid to the government through utility bills.

The Green Deal includes a clause that is called the ‘Golden Rule' and this stipulates that repayments on the money borrowed should not exceed the savings that are made from the improvements made to the home from the loan. If the owner sells the property, the Green Deal and any repayments are transferred to the new owner of the home.