EPC B by 2031: What the New MEES Rules Mean for Manufacturers

Minimum Energy Efficiency Standards (MEES) set the minimum energy performance a commercial property must achieve before it can legally be let. Currently, the minimum standard is EPC E.

EPC B by 2031:  What the New MEES Rules Mean for Manufacturers background

Manufacturers who own their premises, and landlords of industrial and commercial property, need to understand what has changed and why acting now is important. 

New EPC B requirement confirmed for larger commercial buildings from 2031

On 18 June 2026, the UK Government confirmed that all privately rented non-domestic buildings over 1,000 square metres in England and Wales will need to achieve an EPC B rating by 2031, where cost-effective.

 

What is MEES and why does it matter?

Minimum Energy Efficiency Standards (MEES) set the minimum energy performance a commercial property must achieve before it can legally be let. Currently, the minimum standard is EPC E.

BUT from 2031, that bar rises significantly for larger buildings.

An Energy Performance Certificate (EPC) rates a building's energy efficiency from A, the most efficient, to G, the least. The jump from the current minimum of E to the proposed new minimum of B is substantial. For many buildings, particularly older industrial and manufacturing premises, it will require meaningful investment in insulation, heating systems, and other energy efficiency measures.

 

THE SCALE OF THE CHALLENGE

Industry analysis of non-domestic EPC certificates lodged in 2026 found that industrial property recorded the highest concentration of lower-rated buildings, with nearly 70% of assets assessed below EPC B. For manufacturers who own their premises, this suggests the majority of industrial buildings will need meaningful investment to reach the new standard.

 

What has changed and what has not

What is new 

  •  From 2031, privately rented commercial buildings over 1,000 square metres must achieve EPC B, where cost-effective.
  •  From 2031, privately rented commercial buildings over 1,000 square metres must achieve EPC B, where cost-effective.
  • Buildings below 1,000 square metres remain subject to the current EPC E standard with no fixed deadline to go beyond it. 

 

 

What remains unchanged

  • The seven-year payback test remains in place. Landlords are only required to make improvements where energy savings over seven years cover the cost of the works.
  • Existing exemptions, including the consent exemption, devaluation exemption, and new landlord exemption, continue to apply.
  • Owner-occupied buildings are currently outside the scope of the MEES regulations, though energy efficiency investment still makes strong commercial sense for owner-occupiers.

Why manufacturers should not wait until 2030

The removal of the 2027 interim milestone may feel like welcome breathing room. It is not.

For buildings that currently sit well below EPC B, the gap to the new standard is likely to require a combination of measures. None of these are quick fixes.

Assessment, design, procurement, and installation all take time. For manufacturing sites where production continuity is critical, the logistics of retrofit works need careful planning to minimise disruption. Organisations that begin assessing their buildings now will have the flexibility to phase investment sensibly, align works with planned maintenance cycles, and spread capital expenditure over several years.

 

THE COMMERCIAL CASE BEYOND COMPLIANCE

Buildings that improve their EPC rating are also likely to benefit from lower energy bills, reduced exposure to volatile energy prices, and stronger asset values. The Government has estimated that tenants in larger non-domestic buildings could save up to £360 million per year in energy costs collectively by 2031. For manufacturers running energy-intensive processes, the savings from a better-insulated, more efficiently heated building are a direct contribution to operating cost reduction.

 

What does reaching EPC B typically involve?

The specific works required depend on the building's current rating, age, construction type, and how it is used. For manufacturing and industrial premises, improvements typically focus on the building fabric and the systems that consume the most energy. Common areas identified through energy assessments include roof and wall insulation, heating system upgrades, improved building controls, and lighting.

The starting point is always understanding where energy is actually being used and where the biggest gains are available. Without accurate data, it is difficult to prioritise investment or make the case for individual measures under the seven-year payback test. A structured energy assessment, backed by sub-metering where needed, gives you the evidence to make those decisions with confidence. 

 

How Pro Enviro can help

Pro Enviro has over 30 years of experience helping energy-intensive manufacturers reduce energy costs and carbon emissions. We carry out detailed site energy reviews, identify the most cost-effective improvement measures, and provide the data foundation needed to plan and prioritise investment.

  • Low carbon strategy development identifying the most cost-effective energy and carbon reduction measures for your site and buildings
  • Micro metering surveys to establish accurate building and process-level energy consumption data
  • SEE Change automated monitoring and targeting to track energy performance continuously and identify where efficiency can be improved
  • ESOS energy audits covering buildings, processes, and transport, with action plans that identify priority improvement measures
  • SECR and carbon reporting to track and evidence improvements in building energy performance over time
  • Grant funding support to help offset capital costs where funding is available for energy efficiency improvements.

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